The early morning agreement between the leaders of the European Union and bankers brought relief to financial markets around the world. The $1.4 trillion bailout fund coupled with a 50% write-down of Greek bonds by the banks will prevent an immediate meltdown of the Euro. It remains to be seen if Europe and the United States can actually reduce sovereign debt. Unless we see some real results, the debt bomb will keep ticking.
Here are some useful links to the story behind the European agreement: