Greece is going to their bailout, to the tune of almost a trillion dollars. European markets responded with large gains, which have spilled over to North American markets. There seems to be a lot of excitement over pouring a trillion dollars down a rabbit hole. Make no mistake, the European Union must enforce difficult financial reforms otherwise the Greeks are just going to find themselves back in this exact same situation a few years from now.
What happens when Italy needs their bailout? Portugal? Spain? Greece is a small country of 11 million people. Spain has 46 million people. Italy has 60 million people. Greece has a GDP of $341 billion dollars. Spain, Italy, and Portugal have a combined GDP of $3.3 trillion dollars. If it requires $1 trillion dollars to bailout Greece, then it in theory would require $10 trillion dollars to bailout Italy, Spain, and Portugal. If all of the above just burn through that money without fixing structural problems, this will hit us even harder next time.
I'm really happy to see the markets having a good day, but without structural reforms to correct the fatal flaw dragging these European countries into the abyss, these crises will just occur with greater frequency and stronger magnitude.