The market has absolutely not priced in a Europe grand plan. If that were to happen we'd be above 1400 on the S&P. The market has un-priced the armaggedon previously priced in. Bottom line is that there really isn't a solution for Europe. they can talk all they want, but any solution that could really solve the problem would take years to implement as it would require all 17 countries to sign off and push through their own legal / political systems, and would require changes to the Mastricht, which is the equivalent of the European constitution. The question is how far can they kick the can down the road, and how can they pay for it without actually paying for it. they are trying to find a way to have their cake and eat it to. Not gonna happen.