The U.S stock market certainly reacted positively to reports that European leaders were working toward a greatly leveraged bailout fund and that China may invest in the rescue fund. The S&P 500 rose 12.95 points, or 1.1%, to 1,242. So based on today's news, optimism prevails again. Time will tell if an agreement is really in the works. My prediction is that even if agreement on a debt plan for the European Union is within reach, there will be some twists and turns before we get there. Stay tuned.
Over at New Economic Perspectives, they also fail to share in the optimism. Check out the post by Marshall Auerback that addresses Europe's Non Solution.