The Dow-Jones Industrial Average is up more than 200 points and is trading above 12,000.
The climb is a knee-jerk reaction to the news that the EuroZone has decided on a "rescue" plan that will result in holders of Greek debt taking a 50% haircut, with a firewall around the remainder of the EZ.
A few things to note: The money that is causing the knee jerk reaction in the US is money Ben Bernanke has been printing, as long as Bernanke continues to print at near record rates expect manipulated strength in the stock market and overall economy.
As for the EZ, it's not clear where the they are going to get the money for the leveraged trillion euro plan. Sarkozy is supposed to ask China. Huh. More than likely the euros will simply be printed with major price-inflationary consequences.
But further, this plan, for all practical matters, only addresses the current financial problems of the PIIGS. They guys aren't stopping their spending to any serious degree and will need even more money down the road.
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