Some are speculating that the latest agreement between the Eurozone partners to stabilize the Euro was sparked by fears that traders around the globe were ready to pounce on the currency. With violent protests in Greece, continuing fears of problems spreading to fellow Mediterranean adjacent Spain and its Iberian neighbor Portugal, and distant memories of what George Soros and friends were able to do to the Bank of England, it would be no wonder.
The deal appears to be centered on a potential $645 billion lending facility which would allow nations with sovereign debt troubles and borrowing needs to avoid falling into the same hole Greece has. This would both allay fears of a wider contagion and stem the tide of bets against the Euro in global currency markets, a cause which the European Central Bank would otherwise have had to eventually undertaken on its own.
Though Greece itself remains in trouble as angry citizens have not taken any steps towards embracing difficult austerity measures, the lending facility and the backing of the EU member nations which it enjoys is likely the first step in a difficult process to ensure that the troubles do not spread. The European Central Bank and individual European finance ministers don't always share views, but in this case, they may be able to share a sigh of relief.
UPDATE: It looks like the package has had its desired effect as Europe has rallied today.
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