Dino Viehland <di...@microsoft.com> added the comment:

It's catching the exception when it invokes x, but the recursion enforcement 
should happen at a method prolog, including at the invocation of g.  Therefore 
if we're at or beyond the recursion limit when invoking the trace handler the 
limits should still be enforced and that should be the same as the trace 
handler raising.

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Python tracker <rep...@bugs.python.org>
<http://bugs.python.org/issue6717>
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