While everything negative is "priced in" in perpetuity, just as it was in January 2011 when nobody cared about Europe for months, until it hit with a vengeance and the second failed Greek bailout had to be enacted, someone appears to have forgotten to tell the EFSF that its magnificent placement of €1.5 billion in ultra-short term Bills today is supposed to confirm all is well, and that the French downgrade is for chumps. The EFSF spread has now ballooned back to December 21 levels when the LTRO took place. Then again, with the market ramping now entirely on hopes of double downing €1 trillion LTRO as Zero Hedge reported first yesterday, fundamentals are the last thing that will matter.
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