Here's what we're following this morning:

(via Boing Boing)

Recession could force Italy to seek EU aid - Financial Times | Germany and the Bundesbank will ask for firm commitments on future reforms.  That will be nearly impossible for Monti to deliver.

The spreading financial rot - Counterpunch | The idea that the current administration has pursued a policy of austerity is ludicrous.  Yes, that policy has been ineffective, but it hasn't been harsh.  When your re-election plan focuses on fear of The Other Party, there's not much hope either for another 4 years or for a new 4-year stretch.  God Bless the two-party system.

Merkel and Clinton go to China: guess who made a deal, and guess who was snubbed - Testosterone Pit | One made money, the other made a deeper enemy.  Just what we need.

Rising home values in the face of stagnant incomes - Dr Housing Bubble | We're seeing movement (i.e. gains) because we've had incredibly low interest rates that have offered buyers more leverage.  It has nothing to do with income moving up to meet the current prices.  When you look at the younger cohort, you realize that student debt will be the big impediment to action as we learn more about the fluctuating income changes and the impact on the future housing market.

Soros' three-month window on Eurozone crisis management is up - Naked Capitalism | Whew.  Good thing we have unlimited, "sterilized" bond-buying from the ECB to solve all of our problems.

Who is bankrupting the US? - TrimTabs Money Blog | $2.4 trillion in tax collections is equal to about 25% of ALL pre-tax income.  We need to spend $3.6 trillion.  Quick math: how much do we have to borrow JUST TO MAKE THE SYSTEM WORK?

Regardless of what Draghi said today at 830a EDT, can he reshape Europe? - The Washington Post | Mario, meet your Rubicon.

The most important political news this week - Robert Reich | Don't worry: that news will soon be restated and reshaped with the NEXT report.

Honduras sets the stage for three privately-run cities - Conscious Capitalism via Cryptogon | "The future will remember this day as that day that Honduras began developing."  Yeah...but developing what?

Blame Germany? - Mother Jones | Uh...if I loan you money, don't I have a say in the terms of the deal?

A masterful introduction to ENCODE, one of the most impressive genome projects of our time - io9 | 80% of our genome has a biochemical function; it's not junk.  But we still don't know what it all does, yet.  Scary, huh?