The approval of a Greek bailout plan worth 45 billion euros ($61 billion) sparked a strong rally in the euro and a corresponding sell off in the US dollar. As of 10:30 EDT, the June futures euro contract was trading at $1.35990, up .0143. The June futures US dollar contract traded at 80.645, down .596.

Euro finance ministers said they would offer Greece up to $30 billion euros in three- year loans averaging 5%. This is much lower than recent rates for Greek debt. The yield on Greek three bonds fell 90 basis points to 6.29%

On Friday I sat at my desk ranting that Germany must help Greece without the International Monetary Fund. And over the weekend, the European Union finally drew up a plan to support its Greek brothers and sisters. This time, Germany is on board, bending to the ever-increasing pressure to do the right thing. However, the IMF was not left entirely out of the picture.

On April 11, the EU agreed to a Greek rescue package to subsidize Greek bonds at a 5% rate, about 20% less than current floating rates. The plan could cost 45 billion euros ($61 billion).

Germany, the European Union member with the largest and strongest economy, should get off their high horse and support Greece, not the International Monetary Fund (IMF) -- which to a large extent is the United States.

Greece is on the brink of disaster and for some reason the German government, following the sentiments of the man on the street, is willing to let the chips fall where they may. They do not seem to be able to grasp that the EU ship can only sail in one direction at a time and that half a ship will not sail at all.

Just last week I questioned why anyone would be interested in acquiring 10 year Greek bonds (Serious Money: Greek Bonds or High Yield Stocks) when there were so many alternatives. The answer is that not enough are, and that means to find a sufficient number of investors the yields are rising with continued upward pressure.

The pretend economic support of Greece by the European Union members and the International Monetary Fund (IMF), which is smoke and mirrors absent any guarantees or required concrete action, gives investors no confidence. If Greece's European partners are so concerned that Greece has the potential to falter in meeting its obligations, then why would anyone else have confidence?

The economic debate among the European Union nations about how to handle the turmoil in the Greek economy and, subsequently, the Greek bond market casts greater doubt on the value of the euro and the EU with each passing day -- and they know it!

While the economic benefits of the Union are obvious and highly valuable the turmoil has turned a giant spotlight on the problems and conflicts that exist and will continue to exist for another century or more if not solved in a way that not only works for the EU but does not diminish the Euro in the slightest way.

California has a huge deficit and will not be going to the International Monetary Fund (IMF) for financial assistance. This is true of a dozen other states as well.

The European Union, which was established to compete with the economic clout of the United States, is looking like the European Dis-Union (EDU) -- currently "dissing" on the state of Greece. This EDU is a far cry from the good 'ol USA, which has plenty of economic and social strife of its own, but even under the most stressful times has demonstrated it takes care of its own.

Tuesday's key developments in As The Eurozone Turns:

Greece is expected to announce an additional 3.5-billion-euro ($4.85 billion) deficit cut, to address concerns voiced by European Union members that the Mediterranean nation has to do more to correct its profligate fiscal ways, The New York Times (NYT) reported Tuesday .

Word of additional heavy-lifting by Greece comes after German Chancellor Angela Merkel said Greece "in the coming days" must reveal new measures to address EU member concerns that Greece is not doing enough to resolve the fiscal crisis, Bloomberg News reported Tuesday. Merkel is set to meet with Greece Prime Minister George Papandreou on Friday, March 5.

Monday's key developments in 'As The Eurozone Turns':

European Union Economic and Monetary Affairs Commissioner Olli Rehn told reporters in Brussels before a meeting of EU finance chiefs that, "We expect that in due course the Greek government will take the necessary additional measures," Bloomberg News reported Monday.

Meanwhile, EU leaders gave little sign Sunday or Monday that they would alter their view that Greek-based fiscal action was the intrinsic step in the crisis' resolution, The Wall Street Journal reported Monday (subscription required). Greece also may have used credit default swaps to mask and/or distort the true size of its annual budget deficit, when this tactic was legal; swaps for this purpose have since been banned by the EU.

It's a good old fashion standoff, and this time it's on the world stage. Germany and the European Central Bank (ECB) want Greece to tighten further. Specifically they want Greece to add 1% to 2% to its value-added tax and cut wages further in exchange for financial assistance.

Greece is balking. They want to postpone any decision on further measures until mid March when officials from the European Union, ECB and the International Monetary Fund complete their inspection of Greece's deficit cutting plans.

Eurozone leaders met in Brussels and hammered out a tentative plan to back Greece's debt problems. The agreement is lame, as it is placing all of the responsibility on Greece to make drastic changes in its budget. The goal is for Greece to bring down its deficit by 2012.

The plan sets up a liaison between Greece and the European Commission which would monitor the implementation of Greek reforms. It should be made clear that Greece has not asked for aid.

"All euro area members must conduct sound national policies in line with the agreed rules," Herman Van Rompuy, the EU's permanent president said. The rules were not spelled out. They will be finalized on Monday.

Several factors converging on the metals markets are causing a sell off.

First, China has taken steps to curb bank lending. Much of the Chinese stimulus money has gone into the purchase of raw materials. Now, with things cooling down, traders are less willing to stockpile base metals.

Second, U.S. payrolls fell by 20,000 last month, indicating sluggishness in the U.S. economy.

British and Dutch investors turned to Iceland a few years ago, attracted by savings account deposit rates that were competitive with equity investment returns. It was an amazing situation, and the money just seemed too easy.

Then, Iceland got the sort of IMF loan that is normally reserved for countries like Somalia, and the Brits and Dutch worried that they'd never get their money back from an investment as supposedly safe as a savings account.

First of all what is sovereign debt? Sovereign debt is created by the issuance of bonds by a country's government. When the financial meltdown occurred last year, governments around the world issued bonds to obtain money for their respective stimulus programs. The amount of debt (bonds) issued worldwide has been astronomical.

Now, investors around the world are worried that some countries are in danger of their bond markets collapsing or, worse case scenario, for the country to default on its bonds.

Chip maker Intel Corp (NASDAQ: INTC) had some embarrassing emails published today by the European Union that show the company may have been strong arming its customers into buying its products over competing chip makers.

The emails were part of the evidence that led to a record EU fine set against the company last May of $1.45 billion, when it was determined that the company had used strong-arm sales tactics in its competition with Advanced Micro Designs (NYSE: AMD).

On Thursday morning, European Union regulators announced the launch of an antitrust probe into U.S. software maker Oracle's (NASDAQ: ORCL) takeover of Sun Microsystems. The regulatory group believes that the deal could lead to higher prices and limited choice for database software. Approval from this group is considered the main stumbling block for the deal, which has cleared the Department of Justice in the United States.

The final decision has a deadline of 90 days, or January 19, 2009. By this date, the European Commission can decide to clear or to block the deal. More often than not, the Commission will force companies to make changes that would eliminate any concerns over antitrust regulations.