Greek Fire, Part 3

Looks like the EU has made Germany an offer it can't refuse.  The EU is bailing out Greece after all, with Germany taking the lead.

U.S. stocks rose, recouping yesterday’s losses, as a European Union official held out the prospect of bailing out Greece in return for progress in reducing its budget deficit.

The Standard & Poor’s 500 Index climbed to its highest level of the session after Olli Rehn, who takes over as EU economic affairs commissioner tomorrow, said support for Greece will be discussed in coming days.

Freeport-McMoRan Copper & Gold Inc. and ConocoPhillips rose at least 2.7 percent as metals advanced and oil rebounded above $73 a barrel. Coca-Cola Co. jumped 3.7 percent after sales grew in China and India.

The S&P 500 climbed 1.6 percent to 1,073.44 at 12:05 p.m. in New York. The Dow Jones Industrial Average increased 185.39 points, or 1.9 percent, to 10,093.78 after closing below 10,000 for the first time since November yesterday. Six stocks rose for each that fell on the New York Stock Exchange. 

What's the price Greece will have to pay?  More importantly, what's the price that Germany will have to pay for being saddled with Greek debt?  I didn't think the Germans would be this dense, but there you go.  The problem is the Greek Fire has already spread to Portugal, Italy, and Spain.

They will want a bailout too.  And now things get interesting.  Germany will have demands to make.  The EU will have to meet that price or no help.  The haggling is always the best part of any deal, and now the haggling will begin in earnest.  Pay close attention to the details of the deal...if there is one.  This all could be wishful thinking on the part of the EU.  Either way, Europe is in serious trouble right now...almost as much trouble as the United States.

[UPDATE 12:51 PM] And the Germans are already denying there's any sort of deal.  Oops.  Dow was up 200.  Not for much longer.