The euro advanced the most in seven months versus the dollar after Europe offered Greece a rescue package worth as much as 45 billion euros ($61 billion) at below-market interest rates.
“The deal has quelled any notion that Greece would default on its debt,” said Boris Schlossberg, director of currency research at the online currency trader GFT Forex in New York.
Well, he is correct, it has slightly abated the notion overnight, spreads have come in slightly.
tr.v. quelled, quell·ing, quells
1. To put down forcibly; suppress: Police quelled the riot.
2. To pacify; quiet: finally quelled the children's fears.
The question is for how long? Another minute, another hour, another day, another week, or another month. Paulson tried this same thing back in 2008 and his famous Bazooka blew up in his face. To me this just sounds like plan #4 or #5 or whatever number they are on now.
Don't worry this is coming down the pike for every country and the States won't be far behind. Maybe Italy can send Greece some money and then Greece can turn around and send some to Italy. Sounds like a plan, plan number 6.
None of these plans will work long-term, the system is unsustainable long-term.