USD to benefit from EURO uncertainity

There is a possibility that Uncle Sam will be saved from devaluation of its currency for longer then estimated, as its closest substitute 'The Euro' is starting to show cracks. Burden of saving Greece would obviously fall on Germany and France; The Big brothers. If Greece is saved, there is no reason why Spain, Portugal and Italy shouldn't be.

At the same time nationals of saviors would obviously want to know as to why their thrift should be punished for spendthrift attitude of their neighbours. Why should the taxes they pay, to be used for investment in their own country and for the future of generations, should not be used to do so. Also, saving these countries does not guarantee they the will come out winning. Possibility is that they may come back for more later and what then?

Now, in case Greece is not saved, that would obviously put strain on Euro as one of the pillars of the edifice would crack. This again would harm other members as this would devalue their net worth.

Currently there is a lot of uncertainty in the EU and this obviously augers well for the USD as uncertainty in the EU would make holders to Euro to run towards USD, the only other highly liquid international currency.

Well are their any implications for the market?
a) In case the Greece defaults, Equity markets would fall.
b) Greece is helped. In case other countries come forward requesting help, uncertainty would loom again and markets hate uncertainty.
c) Euro weakens and USD strengthens. This would mean that Dollar carry trade would begin to revers as FIIs would start pulling from markets like India.

The overall scenario looks pessimistic. What could take markets higher would be some kind of settlement, that would be temporary in nature but capable of delaying the crisis (again). Skeletons have started to rattle in the cupboard, its only time before they would start showing.

Comments Welcomed.

Reference:
Euro currency union showing strains