On Monday I wrote that the European Financial Stability Facility (EFSF) was a "busted flush".
Finally it seems that the reality of that has hit home to the Eurocrats, who are trying to sell this unwanted product from their bunkers in Brussels.
The Eurocrats have now admitted that "plans" to leverage a fund of Euro250BN to over Euro1BN will fail, and that less than half of that now looks likely (ie it will not be fit for purpose).
Unsurprisingly this failure is attributed to the fact that the markets simply don't believe anything that is coming out of the mouths of the Eurocrats or politicians in Europe.
Even if some money is raised for the fund (and that looks extremely unlikely), Eurocrats do not anticipate that it will be ready anytime before 2012.
In the meantime the markets will continue to deteriorate and the costs of borrowing soar.