Today the stock market is roaring higher as reports of a possible bailout of the debt-rattled Greek financial system spearheaded a wave of buying on Wall Street. Reports are that Germany is looking into helping out Greece by developing a rescue plan that will be aimed at rebuilding both the Greek system and the slumping Euro. Certainly the whole Euro zone is starting to feel some heat of late because of the huge drop in the Euro since December.

Increasingly of late there has been talk of a European debt crisis because of the terrible situation that Greece is in. It seems the whispers we are starting to hear are that other countries are starting to realize they can’t afford to have Greece in such a bad position and a European debt crisis is a very real possibility if action isn’t taken.

This affects the United States market and the overall global market because of the global economy in today’s world. The simple fact of the matter is there is no way that Europe could have a widespread debt crisis and it not hurt the American economy. The stock market in the United States has reacted very negatively of late to the news of the worsening situation in Greece, so today’s news is definitely a reprieve for the market.

While today’s rally is a nice one and it is news driven, the United States stock market will not be driven by this news in the long run. Rather it will be the productivity, or lack of it, from the American economy. It will be the employment picture, which is still rather cloudy right now. It will also be the consumer confidence and retail sales, which will indicate how the consumer is doing. Don’t get caught up in one day’s movement from a news event such as this one too much, because over time it will be the fundamentals of the economy that matter most.