PIIGS - Its Different Now

With all the talk about the European periphery and the blowout in spreads and crippled banks, I thought it might be a good idea to look at a snapshot of that long ago time when Europe was on fire (yep, six months ago):

Way back then, troubles were reflected through three month LIBOR.  No such case now.  Are the banks better?  No.  Are the sovereigns better?  Debatable. Troubles now are localized, which is better and more accurate.  The market is getting more rational and whacking those countries that deserve it and not smacking all of Europe.  This could create some opportunities in stronger country bonds (sovereign and corporate) and help identify where your risks are.