  We compare the structure and kinematics of the 11 known satellites of the
Milky Way with high resolution simulations of the formation of its dark halo in
a LambdaCDM universe. In contrast to earlier work, we find excellent agreement.
The observed kinematics are exactly those predicted for stellar populations
with the observed spatial structure orbiting within the most massive
``satellite'' substructures in our simulations. Less massive substructures have
weaker potential wells than those hosting the observed satellites. If there is
a halo substructure ``problem'', it consists in understanding why halo
substructures have been so inefficient in making stars. Suggested modifications
of dark matter properties (for example, self-interacting or warm dark matter)
may well spoil the good agreement found for standard Cold Dark Matter.
