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Could The "Cyprus Fiasco" Occur In The United States?

Tyler Durden's picture


As has been assiduously explained by members of the European statist oligarchy, the reason for the deposit tax levy, in addition to the broader unsecured debt "bail-in" bailout of Cyprus, was due to the unique funding structure of Cypriot banks, in which the bulk of funding was in the form of deposits (whether Russian or domestic), leaving a tiny €2 billion in the form of junior bonds. Since the bailout would require realigning the balance sheet to a new, sustainable "fresh start" in which assets were remarked to a realistic value, it would mean impairing liabilities all the way down the capital structure. Naturally, politics played a big part in the decision to impair what Germany primarily saw as a Russian money-laundering haven, while local depositors were merely "collateral damage."

Politics aside, the bottom line is that the Rubicon has been crossed, and deposits have now been forcefully confiscated in what Europe promises to be a standalone case. What is certain, is that nobody will wait to find out how long it takes before Europe's class of increasingly more desperate and ill-meaning despots is found to be have lied once more (as it has about everything else since the start of the European crisis). And while the mainstream media will be focused primarily on Europe in the coming days, as BCG and we have warned, the topic of "wealth taxation" is now front and center, and it stars not only Europe, but the US as well.

The question then becomes: what does the funding structure of the US private depository institutions look like, and is there any possibility of Cyprus "wealth tax" recurring on the other side of the Atlantic. To answer this question, we present the summary layout of the consolidated US depository system, which according to the Fed's December 31, 2012 Flow of Funds report had a grand total of $15 trillion in assets, and a matched number of liabilities, of which 72%, or a total of $10.9 trillion was in the form of deposits (checkable, small and large time, and savings).

Visually, this looks as follows:

So, if the US was to go the Cyprus route, and begin impairing balance sheet liabilities to remark assets, there would be precious little space (with just $4.3 trillion in total other funding liabilities), before one would need to start eating into the deposit base, should Congress decide to implement a very "fair and just" financial asset tax in the US next.

Will Congress do this? Obviously, nobody can answer that question now. However, it was "absolutely certain" as recently as 48 hours ago that Cyprus too would see no depositor "bail in" either. Then things changed rapidly. What is known, is that according to the same BCG chart we showed last night, the necessary debt-reduction needed in the US to reach a sustainable debt level, was over $8.2 trillion using debt numbers as of 2009...

... Since then consolidated US debt has risen by over $5 trillion.

Which means that if, indeed, the US proceeds with its own wealth tax, then deposits may well be one "wealth class" that gets impaired. Of course, since in the US other financial assets, namely the stock market, account for a far greater proportion of household net worth, it is quite possible that instead of impairing deposits at US banks, which already subsist solely due to the Fed's $2 trillion in excess reserves, the government may instead choose to generously tax simple 30% of all of your stock holdings, and achieve the same "wealth transfer" result.


Because it's only fair, as the second coming of the glorious global socialist revolution has made it all too clear.

And remember this: there are no longer any rules, and any assets, any "wealth" saved, stored, and hidden is now fair game in the global forced wealth reallocation "game."


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Sun, 03/17/2013 - 12:40 | 3338510 Go Tribe
Go Tribe's picture

They are already stealing saver's money via QE and inflation. So hell yeah, why not just outright take it?

Sun, 03/17/2013 - 12:44 | 3338523 mikla
mikla's picture

You have it? I want it.

Mob rule requiring 51% of the people to decide to take everything from the other 49% (through elections) is too much trouble.  Just take it.

That's why the US was founded as a Republic, and not "mob-rule" (e.g., "Democracy"), because there are limits on what the 51% (mob) is allowed to do.

But, we don't have any rules anymore.

Sun, 03/17/2013 - 12:46 | 3338534 Manthong
Manthong's picture

It has been done already. Remember the retroactive tax increase?

They got away with it.

Sun, 03/17/2013 - 13:00 | 3338618 Bad Attitude
Bad Attitude's picture

And, Dear Leader got reelected by promising to be Santa Clause and give free stuff to his supporters. Santa's "elves" are those of us who still produce something.

Forward [over the cliff]!

Sun, 03/17/2013 - 13:05 | 3338645 francis_sawyer
francis_sawyer's picture

It wouldn't happen in the US until all the 'Billionaire Jews' had already safely transferred their funds to Puerto Rico & the Caymans... Oh wait!

Sun, 03/17/2013 - 13:11 | 3338677 DoChenRollingBearing
DoChenRollingBearing's picture

There is a lot of truth hidden in there...  Yes, the well-connected and the very wealthy will get most of their dough out in time.  Maybe they will leave behind a few token banksters to be judged...

Don't be a victim, get some money out of the bank and buy some gold.

Sun, 03/17/2013 - 13:20 | 3338711 AynRandFan
AynRandFan's picture

and an ocean-going yacht to get it to your favorite island paradise.

Sun, 03/17/2013 - 13:54 | 3338838 Texas Ginslinger
Texas Ginslinger's picture

Cyprus is a tax haven.

This tax heist is going after dirty money- mostly dirty Russian money.

Will be interesting to see how wealthy Russians respond to this.


Sun, 03/17/2013 - 14:04 | 3338879 Manthong
Manthong's picture

Maybe so, but..

1.    They are as dirty as the “reformed commies”.

2.    They whacked the little guy at the same time.

3.    Using a corrupt process to steal from corruption to sustain a different corruption is evil.

4.    This won’t end well for anybody.



Sun, 03/17/2013 - 22:08 | 3340718 FEDbuster
FEDbuster's picture

The world is about to be Corzined.  Beans, bullets and bullion.

Sun, 03/17/2013 - 23:02 | 3340890 goldfish1
goldfish1's picture

Black swan?

Sun, 03/17/2013 - 14:22 | 3338972 They_Live
They_Live's picture

The European snake is broke and eating its own tail for the sake of less than $10bn. Mr Putin can sail to the rescue with $20bn and some cheap oil and all he asks in return is somewhere to park his destroyers and a little private wrestling tournament with some energetic Cypriot maidens.

Sun, 03/17/2013 - 14:33 | 3339018 Skateboarder
Skateboarder's picture

Okay, that's half of the deposits. The other half belongs to the actual residents. You'd surely be jumpin for jah if <your favorite TBTF of choice> just snipped 7% of your checkings account.

Sun, 03/17/2013 - 14:41 | 3339051 otto skorzeny
otto skorzeny's picture

someone on Bruce Kasting's article and is familiar w/Cyprus banking pointed out that Cyprus is basically a "quick stop" for Russian/European $ on its way to the Carribean banks and that all of this Russian mob shit is just the MSM trying to downplay the significance of this $ grab(like the "they had it comin" lib media bullshit). alot of European retirees on Cyprus got whacked pretty good also.

Sun, 03/17/2013 - 15:31 | 3339300 Oquities
Oquities's picture

buy stuff and hide it, bitchez

Sun, 03/17/2013 - 15:52 | 3339389 Kirk2NCC1701
Kirk2NCC1701's picture

It's not just Dirty money, but a lot of Gray money -- money legally earned but undeclared (untaxed) because it came from businesses that deal a lot in cash.

The demographics of gray money includes small businesses, who are fed up with sky high taxes. Sound familiar? Isn't it amazing what you can learn, when you see the world in hi-res color, rather than low-res black & white?

Sun, 03/17/2013 - 16:53 | 3339653 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Looks like it.

I wonder how much of it is Putin's and his buddies?

Maybe the Russians will have a heart-to-heart "discussion" with some of these Euro Banksters and do us all a favor! After all the Bolshevics were Khazarian "Jews" that killed Czar Nicholas and his family, brought in communism and set Russia back a century- and killed how many- 50, 65, 75 MILLION? Remember Stalin was one of THEM?

Just how much more of their shit are the real Russians willing to take?

Sun, 03/17/2013 - 13:47 | 3338804 Miffed Microbio...
Miffed Microbiologist's picture

Just like in Argentina when the elite exited in the middle of the night under armed gaurd with suitcases full of cash. All the regular people could do is pound the banks with pots.The rest of the world yawned, including myself at the time I'm sad to say. I was very naive and plugged in. i look around today and i dont see people with any spirit to fight or even wield a pot. This is a perfect time for them to rape the world.




Sun, 03/17/2013 - 14:24 | 3338949 TheGardener
TheGardener's picture

That pot banging was scary. My hotel was on a road leading to parliament (Av.5 de Mayo?) , basements all boarded up and
me taking a bus back to Brasil despite having prepaid the hotelier for yet another month to get half price. Everybody very sophisticated there, laughing all the way to their dollar accounts at foreign bank branches while talking on their cellphones for a dollar a minute. Did not quite work out.

The day before I left I found a large stash of cash (no joke!) lying in the street downtown and something told me to get out of there.

Sun, 03/17/2013 - 15:21 | 3339223 francis_sawyer
francis_sawyer's picture

Those were the 'Argentine Jews' you speak of... Thereby ~ I rest my case from above...

Sun, 03/17/2013 - 14:22 | 3338973 rambo1028
rambo1028's picture

+1 exactly! 

Sun, 03/17/2013 - 14:40 | 3339045 Skateboarder
Skateboarder's picture

Commoner 1: "You have my pot."
Commoner 2: "And my pan."
Commoner 3: "And my ladle!"

Sun, 03/17/2013 - 14:55 | 3339122 sessinpo
sessinpo's picture

The hidden truth is that francis_sawyer wishes he was a billionaire jew.

Sun, 03/17/2013 - 15:26 | 3339265 francis_sawyer
francis_sawyer's picture

'Billionaire' [valued in WHAT? joobux?]... FAIL [but that's all jews seem to know how to value themselves by ~ so be it]...


All this shit is comical... Jew bankers rape, pillage, & use the media & politics to propaganzide [I'll be NICE here and leave 'enslave' & 'murder' out of it]... Then ~ the minute somebody points a finger at them & says 'OH WAIT'... Their brainwashed corporals come out of the woodwork & have anuerysms...

Fucking comical... SERIOUSLY ~ I don't do it for the HATE... I do it for the PATHETIC COMEDY... Gotta have some fun around this fucking gulag...

Sun, 03/17/2013 - 17:56 | 3339893 toady
toady's picture

I've often wondered why we don't invade the Cayman Isles. We could payoff the national debt, and anyone who complains can be sent to gitmo as an economic terrorist.

Sun, 03/17/2013 - 15:46 | 3339367 WmMcK
WmMcK's picture

+1 - You can't fool me, there ain't no Sanity Clause.

-- Chico Marx

Sun, 03/17/2013 - 13:13 | 3338624 McMolotov
McMolotov's picture

For the love of God, it's not a 51% versus 49% thing, much as some people like to simplify it. This isn't fucking mob rule; it's a tiny minority of kleptocrats stealing from everyone else, using the coercive power of government to accomplish that goal.

It's statists versus the proles, plain and simple. Government has a monopoly on the use of force, and the assholes at the top of the food chain have commandeered governments around the world and turned them against us. They use the meme of "mob rule" to distract us from that fact and keep us fighting amongst ourselves instead of directing our anger at the appropriate target: them.

Sun, 03/17/2013 - 13:14 | 3338687 disabledvet
disabledvet's picture

"when their not swapping favors their swapping spit." absolutely spot on...i must say i an felt as though i should regret my diatribes at the "elites of today"...well, i do apologize but i just can't help myself.

Sun, 03/17/2013 - 13:16 | 3338696 AynRandFan
AynRandFan's picture

Where were you during the last election?  The proles elected their candyman candidates all over the U.S.

Sun, 03/17/2013 - 13:50 | 3338817 McMolotov
McMolotov's picture

This is all far more insidious than it seems. The goal is to eliminate the middle class so that there is a massive permanent underclass and an incredibly small upperclass with control over every aspect of our lives. The easiest way to do this is to steal from the middle class and give to the poor. The poor will be grateful, and the people of the middle class — while angry — will lose that anger within a generation as their children grow up dependent on the system. The middle class work ethic and sense of self-reliance will, in essence, be bred out of existence.

The people who pull the strings are playing the middle and lower classes against each other, and since they are able to effectively direct the economy to benefit themselves and redistribute wealth however they see fit, the middle class will probably lose. It will eventually disappear. It's easy to think the poor are just being "takers." They are, but it's because the system has brainwashed them and made them dependent. With that accomplished, the next target is the middle class, and the soulless bastards behind the scenes will succeed if they can keep us distracted from their manipulation.

Sun, 03/17/2013 - 14:18 | 3338941 RockyRacoon
RockyRacoon's picture

The oligarchs no longer need a middle class to buffer the trends toward communism and outright socialism that they faced in the early part of the 20th century.  The proletariat small businessman and the upper level white-collar worker served as that buffer.   With the relief from unionism and social justice upheavals, the powerful money-wielders can drop the hammer on that buffer class.  The "middleman" has become superfluous.  The old ways of fiefdom organization can resume.  It was only a bump in the road to further harvesting of the workingman's sweat.

The age of industrialism and the advances in technology, all the fruits of entrepreneurship, have merely served to provide the rope to hang themselves with.

Sun, 03/17/2013 - 14:21 | 3338966 CrazyCooter
CrazyCooter's picture

When I was younger, I came across a quote that significantly changed my world outlook in many ways.

Never assume malice where incompetence will suffice.

Your narrative could be true. But a much more simple solution is greedy actors motivated largely out of self interest. Government always wants more control. The rich always want to be richer.

The tradition of promising free stuff is a time honored tool in politics. Kyle Bass's recent interview where he called out Karl Rove for buying votes with Medicare Part D is a perfect example. It invariably leads to collapse because it is not sustainable.

This is not the first time in human history where the rich had a plan to get richer to infinity and blew up the system in the process, nor will it be the last. In 150 years, when we are doing it all over again, no one will be interested in reading all the books we write about it so people will still be just as gullible, just as uneducated, and just as screwed.



Sun, 03/17/2013 - 14:47 | 3339076 Kayman
Kayman's picture


 Malice and incompetence are not mutally exclusive. I prefer the malice theory with loads of incompetence evident.

Sun, 03/17/2013 - 15:01 | 3339159 Skateboarder
Skateboarder's picture

CC - thanks for the quote, I like it a lot too, but only in theory. In practice I'll support Kayman's assertion. Remember that incompetence is an excellent front for malice, whether the two occur in the same person or among a group of people.

Tue, 03/26/2013 - 16:22 | 3378730 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

also: greed != incompetence

Sun, 03/17/2013 - 14:31 | 3339012 TheGardener
TheGardener's picture

Sometimes the middle class is just one paycheck away from
the so called underclass...

Sun, 03/17/2013 - 17:45 | 3339793 Kirk2NCC1701
Kirk2NCC1701's picture

I don't always agree with McM, but he has been spot-on in his above comments. His view mirrors my blogs that feudalism is coming back: FEUDALISM 2.0

The only other thing worth noting is that technology makes Mfg. blue collar jobs obsolete, thanks to the white collar middle class.

Tue, 03/26/2013 - 16:24 | 3378740 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

...and robots.

Sun, 03/17/2013 - 14:01 | 3338876 tlnzz
tlnzz's picture

You assume no corruption of any consequence in the last election. I no longer believe that.

Sun, 03/17/2013 - 13:30 | 3338758 ziggy59
ziggy59's picture

Divide and conquer... Distract and takeover

Sun, 03/17/2013 - 14:05 | 3338888 Freddie
Freddie's picture

Hope & Change.  Democrats voted for this.  The RINO shit is just as bad. 

Sun, 03/17/2013 - 16:09 | 3339459 Ident 7777 economy
Ident 7777 economy's picture

useful poltical idiot; and a democrat I'll bet (until just seconds ago) ... 

Tue, 03/26/2013 - 16:12 | 3378684 TumblingDice
TumblingDice's picture

There are never any rules. We were just able to dress up this wild whore called anarchy with some fancy clothes and called it democracy. Now she's fiending for more with the makeup all smeared. A lot of suckers still think she's pretty but some people know who she really is.

Sun, 03/17/2013 - 12:46 | 3338525 nope-1004
nope-1004's picture

The money grab is on to avoid default at all costs.  What the idiots in power don't realize is that default would be a good thing, cleanse the system, rid them of their ivory tower jerbs, and bring back a balanced market.

Shrinking package size of food items is inflationary, just as taxing capital savings is currency devaluation.  It is clear that default will be avoided at all costs.  Owning PM's now becomes paramount to ones financial future, not for capital gain, but to avoid government theft.  SILVER AND GOLD must be bought.


Sun, 03/17/2013 - 13:03 | 3338636 Waterfallsparkles
Waterfallsparkles's picture

Taxation on the sale of Gold or Silver is brutal.  No capital gains tax just ordinary income.  So, Sell your Gold and you may get a 40% haircut.

Sun, 03/17/2013 - 13:04 | 3338640 DoChenRollingBearing
DoChenRollingBearing's picture

Don't sell it...

Sun, 03/17/2013 - 13:27 | 3338748 machineh
machineh's picture

'Sell your Gold and you may get a 40% haircut.'

Coincidentally, a 41% haircut is what Frank 'Gold Grabbah' Roosevelt applied, when he devalued the dollar from 1/20.67 ounce to 1/35 ounce of Au.

Like a dog who will happily fetch a stick all day, the elites never tire of imposing the same simple play over and over, ad nauseum.

Sun, 03/17/2013 - 13:53 | 3338835 ZeroPoint
ZeroPoint's picture

Which cannot repeat itself now. It's a global market, and Asia will dictate the price soon enough.

Sun, 03/17/2013 - 14:15 | 3338933 Quinvarius
Quinvarius's picture

Uhhh.  NO.  That collectible rate is the ceiling not the floor.  Gold and silver have a reduced tax rate.  Collectible tax rates are the max you will ever pay, not the minimum.  Some people just repeat the nonsense they hear on CNBC without checking facts. 

Sun, 03/17/2013 - 17:08 | 3339719 s2man
s2man's picture

Don't sell your gold and silver.  Barter with it.

Sun, 03/17/2013 - 13:03 | 3338637 DoChenRollingBearing
DoChenRollingBearing's picture

Ahh, back to the glory days of gold and silver salvation!  + $55,000 nope!  Wealth taxes are much harder to collect if, erm, if some of us have, erm, 10 oz of gold stashed away...

Governments are by nature coercive.  If they feel they NEED your money via a "one time" wealth tax (LOL!), why they will do it.  Think Obama is different than Cristina Kirchner (who forced Argentines into putting private pensions into long-term Argentine bonds)?  Think again.  Even "George Washington" (above contributor to ZH) wonders about Obama...

Sun, 03/17/2013 - 13:04 | 3338642 EscapeKey
EscapeKey's picture

no they do realize it - but they also recognize that it's not convenient for them,

Sun, 03/17/2013 - 14:56 | 3339107 TheGardener
TheGardener's picture

When this is over and I`m still alive I will just cleanse
my blood stained hands in prayer at a monastery near that
lake. Disguised as a nun of course, me no boy lover.

Heard some of my direct ancestors had to give up large swaths of land to the church only to have the family resurface on the whole diocese as providing the bishops.

It is hard to trust in god these days but after you gave
away all that money of kings back to earth best covered
with lots of water you become more humble and breathe fresh
air in humility and all that smoke around you is just incense.

Sun, 03/17/2013 - 14:26 | 3338556 AlaricBalth
AlaricBalth's picture

Since the inception of the Federal Reserve in 1913, the purchasing power of the dollar has declined by 95%. It has been a slow motion wealth tax. As soon as money velocity reverses its multiple years decline, we will experience hyperinflation which will destroy what little confidence is left in the dollar.

Sun, 03/17/2013 - 15:31 | 3339295 pies_lancuchowy
pies_lancuchowy's picture

I had to thumb you down, because you spread incorrect numbers.


Purchasing power of dollar versus gold (purchasing power of gold is almost constant in very long term, so it is the best measure of overall 'purchasing power') went down 98% since 1971 ( 35 usd is about 2% of 1600 usd).


Since 1913, it is more than 99%..

Sun, 03/17/2013 - 12:52 | 3338568 A Lunatic
A Lunatic's picture

You forgot to mention the Healthcare Industry, which is what, the fifth branch of government........fucking thieves.

Sun, 03/17/2013 - 13:31 | 3338760 machineh
machineh's picture

Nine more months till you have to buy costly coverage ... or pay a fine to the IRS.

That's the U.S. version of Cyprus's 9.9% stability levy.

Big Health takes it, or the IRS takes it.

Time for your colonoscopy, serfs!

Sun, 03/17/2013 - 12:56 | 3338590 max2205
max2205's picture

Since when do they ever do anything fair

Sun, 03/17/2013 - 12:56 | 3338594 Silver Garbage Man
Silver Garbage Man's picture

I wonder what an ounce of silver is worth in Cyprus today?

Sun, 03/17/2013 - 13:05 | 3338647 DoChenRollingBearing
DoChenRollingBearing's picture

Best question of the day?

Sun, 03/17/2013 - 13:33 | 3338764 ziggy59
ziggy59's picture

Universal Answer: what ever someone is willing to pay

Sun, 03/17/2013 - 15:03 | 3339176 TheGardener
TheGardener's picture

Could be less than half the spot price with the ATM addicts
just keen on contemporary cash. Kind of the cash for gold guys offering 30% after various "melting" charges and taking
the silver for free because of the heavy metal content disposal costs....

Sun, 03/17/2013 - 13:01 | 3338627 Silver Garbage Man
Silver Garbage Man's picture

Last week Jim Willie said the collapse is at our door and a small trigger in Europe will start it. Cyprus is 0.2 % of Europe GDP!

Sun, 03/17/2013 - 13:07 | 3338656 DoChenRollingBearing
DoChenRollingBearing's picture

Ultra-bear Jim Willie is one of the best reads around.

Sun, 03/17/2013 - 13:11 | 3338676 algol_dog
algol_dog's picture

My sentiment exactly - At least they have the balls to steal it right in front of everyone's eyes and not through the myriad of twisted creative BS, that Bernanke & Co use.

Wed, 03/27/2013 - 01:05 | 3380250 Lord Blankcheck
Lord Blankcheck's picture

Direct income tax=pre savings account tax.Isn't that outright taking?(Stealing)

Sun, 03/17/2013 - 12:41 | 3338512 Long-John-Silver
Long-John-Silver's picture

It's only a matter of time. Our version will be confiscation of 401K and IRA accounts. They will tell you that you'll get your money at retirement in addition to a Social Security check which they are "saving" with 401K and IRA money.

Sun, 03/17/2013 - 12:57 | 3338569 Jam Akin
Jam Akin's picture

Absolutely.  Look for it immediately after the next stock market crash operation, "conversion of risky assets into stable, secure US Bonds is necessary to preserve the retirement security of the American people"...

Sun, 03/17/2013 - 13:07 | 3338654 McMolotov
McMolotov's picture

I keep telling my parents the same thing. I've opened their eyes quite a bit over the past few years, but they think I'm a little paranoid for suggesting the government would blatantly rob from people's retirement.

Hopefully the shit in Cyprus, even if it is "way over there," will make them take the threat more seriously.

Sun, 03/17/2013 - 14:22 | 3338971 RockyRacoon
RockyRacoon's picture

Your parents also probably think that a "well regulated militia" is unnecessary.

Odd how trust of the government is touted so broadly -- it's whistling past the graveyard.

Sun, 03/17/2013 - 15:21 | 3339252 TheGardener
TheGardener's picture

My parents have been through all kinds of shits during their long lives but as progressives they never look back lest they could be blamed for causing or at least helping the whole evil thing by their underlying attitude. On history they start to listen and they will take their late wisdom to the grave after a life cheering up to unbelievable lies.

Sun, 03/17/2013 - 20:01 | 3340340 american eyedol
american eyedol's picture

didn't kyle bass just say love for ones country is different than love for ones government?

Sun, 03/17/2013 - 13:13 | 3338685 DoChenRollingBearing
DoChenRollingBearing's picture

OUT of .gov sponsored pensions (just an IRA in my case) since 2008!  It CAN happen here.

Sun, 03/17/2013 - 13:19 | 3338706 Silver Garbage Man
Silver Garbage Man's picture

Absolutely, my wife and I cashed out our retirement accounts and paid 100 grand in tax. It hurt like hell but I am so happy to be out of the system. Our wealth is now locked down and we sleep very well.

Sun, 03/17/2013 - 12:41 | 3338514 A Lunatic
A Lunatic's picture

They didn't buy 2.2 billion hollowpoints for nothing................

Sun, 03/17/2013 - 12:55 | 3338573 Jam Akin
Jam Akin's picture

Which is a great reason to get your own .40 now.

Sun, 03/17/2013 - 15:29 | 3339292 LayPersonWatchin
LayPersonWatchin's picture

I like the way you think.  I got two.  You have to have a plan B.  "Two is one, One is NONE"- that quote is for my tacticaly minded buddies.

Sun, 03/17/2013 - 21:00 | 3340498 Jam Akin
Jam Akin's picture

more is always better

Sun, 03/17/2013 - 12:41 | 3338515 prains
prains's picture

you call it socialism, he calls it fascism we all call it oligarcism

Sun, 03/17/2013 - 13:01 | 3338629 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture


Sun, 03/17/2013 - 13:07 | 3338658 McMolotov
McMolotov's picture

Neofeudalism or bankofascism.

Sun, 03/17/2013 - 13:12 | 3338684 prains
prains's picture

plutocracy disguised by meritocracy

Sun, 03/17/2013 - 13:44 | 3338795 magpie
magpie's picture

plutocracy...but rule by bankrupt plutocrats

Sun, 03/17/2013 - 12:45 | 3338533 Walt D.
Walt D.'s picture

It's a lot easier for the FED to keep "printing" money. The effects of inflation are only noticed over a period of time. Sort of like the boiled frog syndrome. No need to frighten people by throwing them into hot water.

Sun, 03/17/2013 - 12:52 | 3338566 AynRandFan
AynRandFan's picture

Who needs new taxes on the rich when you can starve the poor with Fed-flation?

Sun, 03/17/2013 - 12:45 | 3338539 de3de8
de3de8's picture

Of course it "could", the question is will it happen? I almost hope it does as maybe what it takes to wake the Sheeple.

Sun, 03/17/2013 - 12:56 | 3338589 A Lunatic
A Lunatic's picture

I fear that the majority of sheeples are too heavily invested in the "it's not fair" narrative to give two shits.......

Sun, 03/17/2013 - 14:04 | 3338885 smlbizman
smlbizman's picture

you were close...could...will.....correct word....when...

Sun, 03/17/2013 - 12:46 | 3338541 lolmao500
lolmao500's picture

Why couldn't the ECB save the Cyprus banks like they have done all the others insolvent EU banks? Why take a different path this time? Is it time for a planned collapse?

Sun, 03/17/2013 - 12:52 | 3338570 EscapeKey
EscapeKey's picture

Recall this about Lehman?

 a trading house like Lehman, which has little direct connection with retail markets and ordinary homeowners, could be allowed to go bust without causing the kind of systemic risk posed by Fannie and Freddie.

This time around, they think Cyprus is "too small" to cause catastrophic ripple effects.

Perhaps the big banks are in serious trouble, and require a bailout - and the expected flux following the scramble of Cyprus will enable the politicians to hand the big banks yet another blanko cheque.

Sun, 03/17/2013 - 12:59 | 3338609 dick cheneys ghost
dick cheneys ghost's picture



''Perhaps the big banks are in serious trouble, and require a bailout - and the expected flux following the scramble of Cyprus will enable the politicians to hand the big banks yet another blanko cheque.''


Excellent point............One has to have eyes in the back of ones head to know what these bastards are up too...........

Sun, 03/17/2013 - 13:03 | 3338620 fonzannoon
fonzannoon's picture

let's make an assumption. This week spanish and Italian debt sell off bigtime.

Who owns it?

I guaranfreakingtee you ekm is going nuts trying to figure that out.

Sun, 03/17/2013 - 13:32 | 3338761 Disenchanted
Disenchanted's picture



" This week spanish and Italian debt sell off bigtime.

Who owns it?"


In the future will it be called a "shitty deal?"

Sun, 03/17/2013 - 13:36 | 3338770 ekm
ekm's picture


Sun, 03/17/2013 - 15:51 | 3339380 TheGardener
TheGardener's picture

Reportedly the robbers demanded 40% at blank point. Made off with promises of much less. Lot`s of German bashing and rightly so but the mindset of Schauble is that he is the heir and custodian of all German savings which he wishes
to have adjusted by 90 % because they did not earn all that
money , somebody else did it for them.

They had the play on their own savers for so long they
innocently gave it away on supposedly illicit Russian deposits and thought this was a fair deal. They ( SPD Steinbruch Chancellor candidate) dreamed aloud about sending the cavalry to recalcitrant Switzerland for recovering flight capital . Switzerland caved in and by now is falling
into her own sword. Schauble on a roll, well the wheelchair
kind. Cripple everyone else , because all I hate more than myself is my tribe. Tax cheating bastards, they survived
all my confiscatory tax measures, they must be cheating !

You know, since they have legs they are cheating on me !

By the time this disease finally reaches the US and the
same kind of self-haters is not overcome make this : Sorry, we will take the lot.

Aaand, it`s gone.

Sun, 03/17/2013 - 12:47 | 3338543 cherry picker
cherry picker's picture

In the movie Zero Dark Thirty the CIA buys a Lambo for a Saudi for a phone number.  Who pays for the car?  Obomber's admin steals the coin from us in the form of taxes, meanwhile we don't have a body do we?  Do we know if he is even guilty for 9/11?


Yeah it can happen in the US.  When you can't trust gov or media or law inforcement anymore, what have you got left?





Sun, 03/17/2013 - 13:17 | 3338699 uno
uno's picture

also the most transparent president of the US is allowing any number of government agencies to have full access to everyone's financial records, with a sql command they can take one or many peoples savings.  How's that for fund raising

Sun, 03/17/2013 - 13:36 | 3338771 Winston Churchill
Winston Churchill's picture

NDAA ,fixed it for you.

Sun, 03/17/2013 - 13:37 | 3338773 machineh
machineh's picture

U.S. secret black budget is now in the tens of billions.

That's OUR 'hot money' -- much of it distributed in cash, right off Ben's printing press, to the worst kinds of violent thugs.

David Cohen is laughing up his sleeve as Cyprus gets blamed for 'Russian hot money':

Sun, 03/17/2013 - 14:11 | 3338915 Freddie
Freddie's picture

F Hollywood and F TV.  Both of them are Operation Mockingbird propaganda fronts for the elites.   If you watch their shot - you enable The Matrix.

Sun, 03/17/2013 - 12:47 | 3338546 koaj
koaj's picture

It could never happen here. Laws of economics and the ways of thieves do not apply once you cross the Atlantic ocean.


<sarcasm off>

Sun, 03/17/2013 - 12:49 | 3338547 resurger
resurger's picture

6.75% of that 10.2Trillion will translate to :

 $ 688,500,000,000

That is how the Banks will soon pass their stress tests! By taxing your deposits

The number above is nothing ... in otherwords, to break even you need a shortcut on the deposits worth 30% +

Sun, 03/17/2013 - 12:49 | 3338559 Political_Savage
Political_Savage's picture

Technically they are going to tell me I'm paying for the pleasure of them risking it for me, without my explict consent.

Who wouldn't want to pay to have that done for them?!

Sun, 03/17/2013 - 13:01 | 3338599 resurger
resurger's picture

when you corner the beast, it becomes very violent..

I mean think about, who needs to chase yield when all you can do is tax customers deposits to generate revenue! so very soon, when real FUBAR occurs, the savers will be looking for the bank that levy less tax on their deposits...

Sir, This shit is unprecedented... god help us all in the near future.

Sun, 03/17/2013 - 12:48 | 3338548 Political_Savage
Political_Savage's picture

Aaaand "BOOM" goes the dynamite.

I am truly intrigued to the see the international market reaction to this. It MUST be bullish of course!

Sun, 03/17/2013 - 12:55 | 3338588 EscapeKey
EscapeKey's picture

Well, with all due respect - when *redacted* pump several trillion of liquidity into the markets on strategic days - due to BARGAINS, GREAT BUYING OPPORTUNITIES, and MODEST P/E RATIOS - then that is pretty bullish.

Sun, 03/17/2013 - 13:36 | 3338772 ziggy59
ziggy59's picture

Lets see, doller will go up, PMs down... Because...Bizarro World is backwards dow to hit new highs..
And who wont have a hangover here in the states due to St Pats day?

Sun, 03/17/2013 - 12:49 | 3338553 squid virtuous
squid virtuous's picture

yes but the Shalom et. al. will have a much more appealing name for it than "up-front one-off security levy"

Sun, 03/17/2013 - 12:49 | 3338554 Uber Vandal
Uber Vandal's picture

Wasn't MF Global, AIG, Lehman, LTCM warning enough that anything can happen, that nothing is safe?

Also, since some of the money that went "Poof" in Cyprus was also of foreigners, the idea that your stores of value will be safe in another country does not seem so likely now....

As the late George Carlin said "And, now, they're coming for your Social Security. They want your fucking retirement money. They want it back, so they can give it to their criminal friends on Wall Street....."

Sun, 03/17/2013 - 12:56 | 3338597 Sandy15
Sandy15's picture

GM bond holders too took a 50% hair cut.....

Sun, 03/17/2013 - 13:02 | 3338633 resurger
resurger's picture

Fuck that! The snake bought the fucking dip for 9cents on the dollar.

Sun, 03/17/2013 - 18:28 | 3339998 Kirk2NCC1701
Kirk2NCC1701's picture

UV, agree with your 1st para., disagree with your 2nd para.

The point of geographic diversification needs no elaboration. But the "lesson" TPTB want us to learn, is to NOT invest/hide our assets from them in peripheral banks (like Cyprus)... better to keep it at home or FATCA-compliant countries. Brilliant psychology (against malleable people)!

But I for one, am not gonna drink their Kool Aid, and will figure out for myself how to allocate across asset classes, currencies, PMs and geographies.

The more diverse, the better the risk mitigation. Think shades of gray, not b&w.

Sun, 03/17/2013 - 12:49 | 3338557 lolmao500
lolmao500's picture

to generously tax simple 30% of all of your stock holdings, and achieve the same "wealth transfer" result.

Meh. 0.1% of people own 80% of the stock market. Fuck em.

Sun, 03/17/2013 - 12:50 | 3338561 Political_Savage
Political_Savage's picture

How does one tax an algo?

Sun, 03/17/2013 - 12:54 | 3338578 lolmao500
lolmao500's picture

One can tax HFT... put a 0.1 cent tax on every sell/buy order. HFT will die within a day.

Sun, 03/17/2013 - 13:38 | 3338777 ziggy59
ziggy59's picture

..and Dimon, Blankfein will approve of such blasphemy?

I think not

Sun, 03/17/2013 - 16:16 | 3339493 orangegeek
orangegeek's picture

Government taxes solve NOTHING. 

Government fucks up whatever they touch. 

Adding a tax on trades makes HFT less profitable - but it's still profitable - and now the bloodsucking government gets paid for it.





Sun, 03/17/2013 - 12:50 | 3338560 spooz
spooz's picture

Such a hugely regressive wealth tax could never make it through our legislature,  imo. The only way I could see it being politically possible is if were specifically targeted at hot money and elite tax dodgers in the Caymans, for instance, and only if it exempted smaller account holders.

Sun, 03/17/2013 - 12:56 | 3338595 AynRandFan
AynRandFan's picture

FDR didn't need no stinkin' legislature when he confiscated everyone's gold.

Sun, 03/17/2013 - 13:23 | 3338732 McMolotov
McMolotov's picture

What concerns me is that now gold is supposedly "only for rich people," whereas it was simply a smart way for a person to retain the value of their savings during FDR's time. I don't think gold confiscation would cause nearly the uproar many people think it would because far too few people own any today.

If the government were to attempt the "Cyprus Solution," however, that would probably result in widespread anger, so the most likely course of action will be to continue to silently steal from everyone through inflation.

Sun, 03/17/2013 - 12:51 | 3338563 Gromit
Gromit's picture

The only thing to fear is fear itself.

Sun, 03/17/2013 - 12:54 | 3338567 sitenine
sitenine's picture

I don't understand the reasoning behind this article. Why the fuck would the U.S. govt take deposits when the Fed will gladly print and 'buy' toxic assets anyway?

Sun, 03/17/2013 - 12:54 | 3338580 Tyler Durden
Tyler Durden's picture

Perhaps the same logic behind why the government is hiking taxes on the "wealthy", or why there are any taxes in the US, when the Fed is already funding half of the US deficit.

In other news, three very important words: "velocity of money" - what better way to stoke inflation than to create what (according to some) will be a modest bank run?

Sun, 03/17/2013 - 12:58 | 3338608 sitenine
sitenine's picture

Thanks, but maybe 'logic' isn't the right word ;-)

Sun, 03/17/2013 - 13:00 | 3338622 prains
prains's picture

i think your looking for the word Logigarchism,( not to prattle on too much)

Sun, 03/17/2013 - 13:40 | 3338783 AssFire
AssFire's picture

I think 'catalyst' is the right word.

Sun, 03/17/2013 - 12:59 | 3338610 fonzannoon
fonzannoon's picture

Only half?

Sun, 03/17/2013 - 13:06 | 3338653 Coke and Hookers
Coke and Hookers's picture

Wealth transfer through printing/inflation isn't working fast enough. They need this liquidity now and therefore need to tap the savings resource faster - and outright confiscation is the next step. The Cyprus thing is a test run for the Eurozone. If the natives don't burn down their banks, this will be done in all southern Euro countries before summer.

 Taxing the 'wealthy' is propaganda newspeak - they are only taxing those not wealthy enough to be in the elite.

Btw I'd like to add the term "savings resource" to the Newspeak thesaurus.

Sun, 03/17/2013 - 14:50 | 3339087 sitenine
sitenine's picture

I'll see your, "savings resouce"; and I'll raise you, "fascism".

Sun, 03/17/2013 - 16:10 | 3339465 TheGardener
TheGardener's picture

"If the natives don't burn down their banks,"

Don`t incite unnecessary global glaring while a box of matches is still just 10 cents...

Sun, 03/17/2013 - 14:29 | 3338983 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Its not going to stoke inflation but it will increase mattresses being stuffed with cash and gold, which will have the exact opposite effect.

Sun, 03/17/2013 - 13:42 | 3338789 Winston Churchill
Winston Churchill's picture

You don't think the FedRes is going to get caught left holding those crap

UST's long term do you ?

Ben has an exit plan;unload that crap on 401kdupes er investors.

Sun, 03/17/2013 - 14:17 | 3338950 MsCreant
MsCreant's picture


US Gov. backstops fed. Treasury makes Fed whole. Treasury seizes retirement acconunts by nationalizing the banking system. In the take over things are "reorganized" and social security is packaged in with the other forms of retirement accounts and pensions, with a haircut, cause hey, we gotta pay off the Feds, but don't worry, you'll get yours (heh heh). 

My imagination goes on to the medical system, student loan system, housing cause hey, we collectively own it all anyway... what is passively socialized now becomes overtly so...

Sun, 03/17/2013 - 14:34 | 3339022 Lucius Corneliu...
Lucius Cornelius Sulla's picture

But fuck if they will touch military or public serpent pensions.

Sun, 03/17/2013 - 12:53 | 3338571 Gunga
Gunga's picture

Starve the beast. Pull your money from the system. Buy what you need from locally owned shops and restaurants.

Sun, 03/17/2013 - 13:04 | 3338638 resurger
resurger's picture

Preserve the tradition

Sun, 03/17/2013 - 12:53 | 3338572 Species8472
Species8472's picture

Can't tax assets like stocks, they would need to be sold to get the money to pay the tax, the selling would crash the market. Stocks and realestate only represent wealth if the produce income, otherwise only a few can sell and realize that wealth. They are just bid up be the rich trading between themselves.


Sun, 03/17/2013 - 21:46 | 3340649 andrewp111
andrewp111's picture

Sure they can tax stocks by just taking a percentage of the shares. Most stocks are in electronic accounts. If they take 33 1/3%, the only shares that need to be sold are the remainders after dividing by 3.

Sun, 03/17/2013 - 12:54 | 3338577 Ourrulersknowbest
Ourrulersknowbest's picture

It's coming to Ireland soon.our people are being softened up to the point that they won't even whimper when it happens.sad.sad.sad.Msm tells them all is well and recovery is on its way.if it wasn't so tragic it would be funny.I guess it's the same in America.keep the masses subdued with icrap and Facebook and you can screw them from behind.hey ! Do you want freedom fries with that?

Sun, 03/17/2013 - 12:59 | 3338614 A Lunatic
A Lunatic's picture

Cash in your IRA and join the IRA............Happy St. Patricks day!

Sun, 03/17/2013 - 13:06 | 3338652 Ricky Bobby
Ricky Bobby's picture

The first country to throw off the shackles will go to the top of my emigration list. I was hoping it might be Ireland.

Sun, 03/17/2013 - 13:48 | 3338808 Ourrulersknowbest
Ourrulersknowbest's picture

First one out will do the best.unfortunatly my bet is Germany...on a bank holiday weekend....

Sun, 03/17/2013 - 14:19 | 3338957 imaginalis
imaginalis's picture

That country was Iceland

Sun, 03/17/2013 - 14:49 | 3339091 Ourrulersknowbest
Ourrulersknowbest's picture

Iceland wasn't a member of the euro.their exit was not from the chains of the Ecb .they can manipulate their currencey to suit their own agenda.the euro is manipulated in tandem with the dollar and sterling to suit the agenda of an entirely different set of political elites.

Sun, 03/17/2013 - 12:54 | 3338582 Whoa Dammit
Whoa Dammit's picture

"Oh! what a tangled web we weave
When first we practice to deceive!"

Too bad our  stellar MBA financial wizards did not pay more attention to the Liberal Arts.

Sun, 03/17/2013 - 15:09 | 3339199 Kayman
Kayman's picture

This is where trickfuck becomes clusterfuck.

Sun, 03/17/2013 - 12:56 | 3338591 cherry picker
cherry picker's picture

We created a monster called central government and NWO.

The monster is hungry and needs to eat.  Anything will do.


Sun, 03/17/2013 - 13:40 | 3338786 ziggy59
ziggy59's picture

..and allowed The FED to entangle the planet with its BS

Sun, 03/17/2013 - 12:56 | 3338592 SillySalesmanQu...
SillySalesmanQuestion's picture

Are well informed people in the U.S. going to keep very much money in any kind of "banks" after yesterday? I know that ZHers won't. Has'nt this already started a very unintended "bank run" all over the world?

Sun, 03/17/2013 - 12:56 | 3338593 void_ptr
void_ptr's picture

"Could The Cyprus Fiasco Occur In The United States?"

FDIC has already issued a public service announcement on the topic:


Do NOT follow this link or you will be banned from the site!