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OCTOBER 18, 2011, 3:12 PM ET
Stocks Through the Roof on Report of 2 Trillion Euro EFSF
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By Mark Gongloff

Here we go again. The Guardian is reporting that France and Germany have agreed to boost the EFSF to 2 trillion euros, and the stock market is off to the races.

Where are they going to get these 2 trillion euros? From the euro tree?

Here’s the top of the Guardian story:

France and Germany have reached agreement to boost the eurozone’s rescue fund to €2tn as part of a “comprehensive plan” to resolve the sovereign debt crisis that the eurozone summit should endorse this weekend, EU diplomats said.

And yet — there are thin details in the story about how this is going to be structured, financed, etc.

Here’s the key graf — the EFSF will have additional leverage and act as an insurance fund, which we all knew about, I thought:

First, the main bailout fund, the European financial stability facility, will be given additional levers enabling it to offer first-loss guarantees for bondholders, be they private or public. Senior diplomats say this will deliver a fivefold increase in the fund’s firepower – giving it more than €2tn compared with the current €440bn lending capability. The EFSF will effectively become an insurer, thereby overcoming European Central Bank resistance to the idea of turning into a bank.

Never mind, just buy stocks.