The Eurozone's Fork in the Road

BUENOS AIRES â?? Many observers have recently declared that the eurozone debt crisis is practically resolved, or at least on hold for a few years. The falling yields at the Italian governmentâ??s last bond auctions in 2011 suggested a significant reduction in the perceived sovereign-default risk. Since Italian bonds are regarded as the bellwether of the crisis, many interpret this is a sign that the European debt market is normalizing.