According to a NY Times article, the cost of insuring the debt of Greece, Portugal, and Spain hit record levels — causing stock markets to tumble, the euro to fall, and borrowing costs in the most vulnerable countries to soar. Analysts note it’s the first big test for the European monetary system and challenges those relatively weak governments to raise taxes and impose harsh spending cuts on a restive populace to bring down their deficits from over 10% of G.D.P. to the benchmark levels close to 3% of G.D.P. called for in the European treaty that created the euro. Failure to do so could send government borrowing costs soaring even higher, making Europe — not the US — the center for macro global risk.