Well maybe we should not put the champagne on ice quite yet, but there were two very good bits of news today. One day after being unable to agree to meet for a pre-summit summit, the European Union has come up with a plan to (hopefully) deal with the sovereign debt crisis. Greek bond holders are going to take a 50% hit, European banks will need to raise new capital, and there is now a bigger fund to try to stop the Greek crisis from spreading to other countries. We will need at least 48 hours to digest all of the details of this deal, but at least they came up with something.
The other good bit of news is the third quarter GDP report which showed a decent 2.5 percent growth rate. Given all of the fears of a double dip recession, this is about the best we could hope for. Consumer spending and business investment both picked up.
The stock market celebrated with a 3 percent increase. Let's hope it sticks
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