EFSF capitulation

``Because of that overcollateralisation, which comes in the form of extra (120 per cent) guarantees, the facility’s lending capacity is much reduced. Indeed the €440bn headline figure disguises actual possible lending of just €250bn. And remember, the EFSF is meant to cover financing needs for Europe’s hotspots until 2013... What seems to be happening with the EFSF then, is the slow realisation that the facility (for many, many reasons) cannot cover all of Europe’s funding needs.''