The euro gained against the dollar as investors watched a summit of European Union leaders on the debt situation in Greece.

At the summit, EU President Herman Van Rompuy did not announce a deal to rescue Greece, but said European countries would be prepared to step in if needed.

EU pledge on Greece fails to calm fears

A pledge by the European Union to stand by crisis-hit Greece punctured hopes in the financial markets yesterday of a swift rescue and raised fears of renewed selling.

Efforts by Nicolas Sarkozy and Angela Merkel, the French and German leaders, to paper over differences between Berlin and Paris on how to deal with the Greek debt crisis led to a summit statement in Brussels that stopped short of providing immediate support for Athens.

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But the lack of a detailed bail-out plan underwhelmed investors in financial markets. While global stocks and bonds made modest gains, the euro fell 0.9 per cent against the dollar.

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Jonathan Loynes, an economist at Capital Economics, said the agreement was "disappointing. It seems to amount to little more than a vague statement of support for Greece." Steven Major, at HSBC, said: "It all hangs on whether the implicit guarantees go down well with the markets. If they don't, then there could be a sell-off."

It all sounds like extorsion: "give us real money, or we'll keep on bringing your pals down"

In the long run, we're all dead. John Maynard Keynes

To Fix America

ecause any economic growth right now increases the prices of oil, which then strangles the economy, you must reduce dependence on oil, or you can't fix your problems.

Because banks aren't lending, and because they are a net drag on the economy having destroyed more wealth than they created, you must break up the major banks or take other similiar actions to the same ends, or you don't fix your problems.

Because defense spending is essentially un-productive you must  end the American empire, cutting "defense" spending by at least half, and "intelligence" spending by three-quarters, or you don't fix America.

Because education is the backbone of modern economies and good education is what allows democracies to work, as the founders understood, you must fix education, so that everyone who is qualified can get a degree without being burdened by a decade of debt and so that the the lower class is able to get through university again, or you don't fix your problems.

For the same reasons you must fix education at the primary and secondary levels by removing it from the property tax base, or you don't fix your problems.

Because oligopolies strangle innovation, produce inferior services and soak up oligopoly profits they haven't earned break up your major oligopolies outside the banks, starting with the telecom companies, or you don't fix your problems.

Because government is now a bidding operation in which monied interests buy the policies that are good for them and not for America you must fix campaign finance, or you don't fix your problems.

Because a lopsided wealth and income distribution leads to deep social pathologies, reduction in real demand, short term risk taking and looting by the financial class and the destruction of functional democracy you must reinstitute steep progressive taxes on the 1950's level, or you don't fix your problems.

Because locking up more people per capita than any other nation in the world is massively economically inefficient and causes severe social pathologies you must break up the prison-industrial complex, or you don't fix your problems.

Because police states are not efficient, and for the sake of your own souls, you must end the drug war and the paramilitarization of US police forces, or you don't fix your problems.

Because real modern infrastructure is one of the keystones to economic growth and competitiveness you must build out proper transportation (high speed rail) and internet (cheap, un-metered high speed to every home) or you don't fix your problems.

In foreign exchange, the euro hit lows across the board as the market reacted negatively to the opaque Greek rescue efforts. At 1640 GMT, the euro fell 0.7% to $1.3638. Against the U.K. pound, the euro dropped to GBP 0.8712. The U.K. pound was up 0.4% at $1.5654.

Dippy whoop.

Last year the euro was at 1.27847 USD (averaged for the month.)

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre