The European Union went with a substantial rescue plan that immediately calmed the markets. The IMF is also providing an additional €250 billion in credit. Much like the massive bank bailout plan in the US, it appears to have brought an end to the constant speculation of who might be next to fail. The euro immediately reacted, bouncing back over $1.30, up a few cents from the Friday $1.27 close. Now that this panic has been settled - for now - where will the market look next? California?
EU finance ministers have agreed on emergency measures worth 500bn euros (£430bn) to prevent the Greek debt crisis from affecting other countries.
The 16 members of the single currency bloc will have access to 440bn euros of loan guarantees and 60bn euros of emergency European Commission funding.
The International Monetary Fund (IMF) will also contribute up to 250bn euros.
