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Cyprus Parliament To Delay "Rescue" Vote Due To Lack Of Support, Despite ECB Pressure For Pre-Trade Open Decision

Tyler Durden's picture





 

The painfully shortsighted Cyprus bail-out, pardon bail-in (also known as wealth tax to those who are actually doing the in-bailing), plan is going from bad to worse. Because in addition to all the previously discussed macro-implications, all of which are adverse and have the full potential of destabilizing the Eurozone once more and lead to bank runs across not only the periphery but the core as well, especially by offshore (read Russian) depositors, there is now a risk that the entire hurriedly-cobbled together "plan" may be on the verge of failure as it may not get a majority vote in domestic ratification.

Today, at 4pm local (2pm GMT) the Cypriot parliament was scheduled to meet to vote through and ratify the tax levy plan, presented as a fait accompli at least by the Eurozone FinMins. A few hours ago, this meeting was delayed until 4 pm local on Monday "after signs lawmakers could block the surprise move.... If [parliament fails to ratify the bail-in], President Nicos Anastasiades has warned, Cyprus's two largest banks will collapse." And so the late hour scramble to procure enough vote to pass the depositor impairment begins as the alternative is simply "or else." 

The problem is that while for Cyprus tomorrow is a national bank holiday (yes, ironic), the EUR opens for trading in a few hours, with the global equity futures markets, and Japan cash to follow shortly thereafter. And with absolutely no clarity on what the "pre-determined" outcome from the Cyprus bailout will be heading into Monday open, where one of the outcomes is the possible collapse of the country's entire banking system, which would certainly have contagious effects on all of the mainland, Europe is starting to freak out.

Bloomberg clarifies the precarious math situation which nobody in technocrat Europe apparently considered when they assumed that they have acquired some 10% of Cypriot sovereignty:

With his Disy party holding 20 seats in the 56-seat legislature, he needs at least nine more votes to secure approval and avoid the financial collapse of the region’s third- smallest economy. If he doesn’t get backing for the plan, the banks may stay shut starting March 19, state-run Cyprus Broadcasting Corp. said. Tomorrow is a bank holiday in Cyprus.

 

“If tomorrow Cyprus’s Parliament rejects the bill, Cyprus opens the road to chaos,” said Afxentis Afxentiou, who was governor of the Central Bank of Cyprus from 1982 until 2002, said on CYBC. If the bill is rejected, “Cyprus will turn into Libya. Even with the pain, we need to follow a normal course, with hope we’ll see better days.”

For now, said European pressure is only coming form the ECB, although expect chaos to break out and a full on media onslaught seeking to sooth and calm the markets to result if there is no movement, and no sign of a majority emerging before the first trades hit the EUR pairs. As ANA reports,

More from Bloomberg:

Anastasiades rejected pressure from an ECB representative to bring a vote on depositor losses to Parliament today, Greek state-run Athens News Agency reported, without saying how it got the information. An unnamed ECB representative pressured Anastasiades to open banks on March 19, the news agency said.

 

Anastasiades met with leaders of the nation’s political parties yesterday. While he may get support from the third- biggest party, Diko, which backed Anastasiades in the election, Diko’s eight seats won’t assure him a majority.

Yet even without a complete market collapse, the damage to Cyprus', and by implication Europe's banking system is done, as the question of who will keep their deposits in European banks after this stunning episode (especially for the Russian billionaire oligarchs who are booking flights into Zurich, Geneva and Basel to shut their accounts immediately) will remain unanswered until we get the March European deposit outflow data, some time in May.

George Perdikes, a lawmaker from the Green Party who sits on Parliament’s finance committee, said ways were being examined to soften the blow to depositors. These include giving them bonds linked to profits from the country’s gas reserves, he said in comments broadcast on CYBC after a meeting of the committee’s members with Anastasiades.

 

“This is a lose-lose situation,” he said. “Whatever happens there will be a massive outflow from Cypriot banks, with or without a haircut.”

Ironically, it was Cyprus' tiny position in the grand scheme of European things that allowed Europe to expose how it truly feels about all members- as it turns out everyone in Europe is equal, except for those deemed to be less important than others. So how high does the bar go: Athens next? Or Madrid? Or Rome?

Perhaps there is a very good reason why, contrary to the sell-side scrambling to assuage fears of a pan-European bank run, the new Dutch president of the Eurogroup Dijsselbloem declined to rule out further depositors haircuts in other Eurozone countries such as Greece, Spain or Italy.

And while readers contemplate that, we hope for the sake of Europe, that ATMs in the latter three countries are well-stocked, because all it will take is one photo of a cash dispensing machine in the periphery to be "temporarily out of service" to be the spark that reignites the European relapse into full outright contagion and panic.

 


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Sun, 03/17/2013 - 09:23 | Link to Comment squid virtuous
squid virtuous's picture

Needed another 24 hours of threats and blackmail I guess...

Sun, 03/17/2013 - 09:29 | Link to Comment francis_sawyer
francis_sawyer's picture

It takes that long to get the jets warming up on the tarmacs [surrounded by a defensible perimeter]... Turns out ~ they were a couple of 'dozers' short...

Sun, 03/17/2013 - 09:40 | Link to Comment Stackers
Stackers's picture

Well I guess turning into Libya is not as bad as turning into Uganda ???

Sun, 03/17/2013 - 09:47 | Link to Comment Popo
Popo's picture

The threats need to be countered very calmly: 

"Go ahead and collapse Cyprus' two biggest banks.  See what happens... Make our day."

Sun, 03/17/2013 - 09:56 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Double dog dare them.

 

Admitting failure is good.....plus it's cheaper.

Sun, 03/17/2013 - 10:12 | Link to Comment francis_sawyer
francis_sawyer's picture

The Apartheid State of Israel, sooner or later, will run out of Palestinian lands to steal & occupy... And now, well, with nat gas discoveries for Cyprus... Well ~ aww nevermind...

Sun, 03/17/2013 - 10:49 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

They already have the votes in hand.  Once enough "consideration" is placed in the other hand, the bailout will get a democratic seal of approval.

And remember, Cypriots, you voted for these guys.  It's YOUR fault.

Sun, 03/17/2013 - 12:54 | Link to Comment Mactheknife
Mactheknife's picture

Well...perhaps Cypriot Congressmen are taking a minute to think about this.  They vote for this and they have to live there...right?  Maybe it wouldn't be such a good thing to have a Russian mobster show up at your doorstep wanting his money back...just sayin.

Sun, 03/17/2013 - 13:26 | Link to Comment rajat_bhatia
rajat_bhatia's picture

I'm going all in long tonight. 1580 target tomorrow!

Sun, 03/17/2013 - 14:15 | Link to Comment James_Cole
James_Cole's picture

One would think that for a gov to attempt something this insane they'd first make sure to have the votes to rubber stamp it. One would be wrong...

Sun, 03/17/2013 - 12:55 | Link to Comment rambo1028
rambo1028's picture

Have to give them enough time to corzine their funds before the release the beast on the slaves.

 

Stacking (cans/lead/shiny stuff) bitchez!!!

Sun, 03/17/2013 - 10:07 | Link to Comment NoDebt
NoDebt's picture

I'm afraid the cat's out of the bag on this one.  The threat was enough to start the panic.  Deposit insurance has been proven highly vulnerable, even if this plan is voted down.  And there are a LOT more people with less than 100K in the bank than there are with people over 100K.  With the banks already paying about nothing on deposits the mental calculus will be "Do I want to risk my measly $20K in a bank where it could evaporate, or do I put it under my mattress?"  That's how REAL bank runs start.

They may not be able to put this genie back in the bottle.

Still, I doubt the banks will fail on Tuesday, as was threatened.  They'll fail about 5 days later.

Sun, 03/17/2013 - 14:01 | Link to Comment fockewulf190
fockewulf190's picture

I, for one (more likely one of many) am not waiting for this bank rot to reach my bank here in northern Bavaria. Time to convert more fiat, place another order for more phyzz, and go rent a boat.

Sun, 03/17/2013 - 12:47 | Link to Comment smlbizman
smlbizman's picture

once again it is proven...it is better to be 2yrs early than 1 day late....

 

Sun, 03/17/2013 - 09:53 | Link to Comment fonzannoon
fonzannoon's picture

As if Beppe Grillo did not have enough momentum.

This may boost him easily over everyone else.

Who is the spanish Beppe?

Who is the _ Beppe?

Sun, 03/17/2013 - 10:39 | Link to Comment ArkansasAngie
ArkansasAngie's picture

Let's be specific ... Who is America's?

Sun, 03/17/2013 - 10:45 | Link to Comment Bullionaire
Bullionaire's picture

It sure ain't Rand Paul.

Sun, 03/17/2013 - 11:05 | Link to Comment machineh
machineh's picture

That's a profound question, actually. Who is the greatest Bain of the Banksters in America?

In the 1930s, one could have nominated Congressman Wright Patman, the Fed's fierce gadfly.

But today, who's doing the most to abolish the Fed? 

Really, we should endow a ZH 'Bain of the Banksters' prize, to recognize and reward our heroes.

Nobels have lost their cachet since Kurgman got his free with an order of shrimp tacos.

Sun, 03/17/2013 - 14:29 | Link to Comment thisandthat
thisandthat's picture

Hum, what's his name... - Ron Paul?

Sun, 03/17/2013 - 19:31 | Link to Comment StychoKiller
StychoKiller's picture

Bain != Bane

Sun, 03/17/2013 - 12:16 | Link to Comment Village Smithy
Village Smithy's picture

Beppe Tyler!

Sun, 03/17/2013 - 13:08 | Link to Comment All Risk No Reward
All Risk No Reward's picture

One person can't change the establishment.  They can't even misdirect it a smidge.

The solution is an educated and active "We The People."

Learn how to think systematically - the Trivium is a good guide.

Buy local, buy small, pay cash, stop funding the enemy - and the enemy is EVERYTHING BIG.

Small pox took down the Americans back in the day.

Big pox is going to take down America in the present.

Sun, 03/17/2013 - 10:05 | Link to Comment Croesus
Croesus's picture

Yakov Smirnoff: "In Soviet Cyprus, bank robs you!"

Sun, 03/17/2013 - 09:30 | Link to Comment Element
Element's picture

The price of running the risk of becoming a kebab is on a moonshot rise me thinks.

Sun, 03/17/2013 - 09:30 | Link to Comment francis_sawyer
francis_sawyer's picture

Didn't Kyle Bass mention he had 'OTM' calls on that?

Sun, 03/17/2013 - 09:39 | Link to Comment Element
Element's picture

Mr Bass is a canny man.

Sun, 03/17/2013 - 09:29 | Link to Comment GAAP is crap
GAAP is crap's picture

this just in:

"Russia nationalizes Cypress and their banks, turns out their oligarchs really like their money"

okay, not likey...but...

Let the game of chicken commence.

Sun, 03/17/2013 - 09:33 | Link to Comment francis_sawyer
francis_sawyer's picture

looks like the BROOKLYN NETS are out of the running to be able to add Dwight Howard to the payroll...

Sun, 03/17/2013 - 09:30 | Link to Comment knukles
knukles's picture

Hah ha ha ha ha
Fuck the technocratic thieves.  A collection of genuinely evil men, destroying the lives of the public, the well being of the populace, for eternal perpetuation of Krugmanesque ideals.
These are the people truly bringing the end nigh.

From chaos, order.

Sun, 03/17/2013 - 09:36 | Link to Comment nmewn
nmewn's picture

lol...I've got a gun to my head.

Do as I say or I'll shoot!

Sun, 03/17/2013 - 10:00 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Don't move.....or the dummy gets it!

 

Now......sing us a song.

http://www.youtube.com/watch?v=vg2O5SlZ25g

Sun, 03/17/2013 - 10:07 | Link to Comment nmewn
nmewn's picture

lol...Mel Brooks was ahead of his time.

Sun, 03/17/2013 - 10:01 | Link to Comment BandGap
BandGap's picture

No shit, when a situation has you empathizing with Russian mafioso, well........

Let the brawl begin.

http://www.bing.com/videos/search?q=rhinoceros+versus+water+buffalo&mid=1163B00ABC8044F312171163B00ABC8044F31217&view=detail&FORM=VIRE2

Sun, 03/17/2013 - 09:35 | Link to Comment aphlaque_duck
aphlaque_duck's picture

This kind of plan really doesn't work if you're debating it while the bank is STILL OPEN.

 

 

Sun, 03/17/2013 - 09:44 | Link to Comment Water Is Wet
Water Is Wet's picture

The rescue isn't approved and they aren't taking anybody's money.  The banks are just going to stay shut indefinitely while they talk about what to do with the money.  But relax, the money hasn't gone anywhere.

Sun, 03/17/2013 - 11:07 | Link to Comment machineh
machineh's picture

Correct. The vaults were already empty.

Sun, 03/17/2013 - 12:00 | Link to Comment moroots
moroots's picture

Maybe but what of the fact that people may need or want that money?  Opportunity cost is what matters during a bank holiday.  Prices of goods/services adjust when people cannot access their deposits.

Sun, 03/17/2013 - 12:11 | Link to Comment toys for tits
toys for tits's picture

 

 

Debit card shopping spree with cash back, bitchez.

Sun, 03/17/2013 - 09:37 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

My guess the Russian Mafia has been making some phone calls.

Sun, 03/17/2013 - 09:50 | Link to Comment MsCreant
MsCreant's picture

House calls?

Sun, 03/17/2013 - 12:01 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

It is a sort of accepted truism on ZH that all the financial maneuvering and contortions eventually mean nothing because things can be redefined by decree -- which means, in the end, nothing changes until bullets enter brains.

They pissed off the Russians?  They may have found the trigger finger.

Sun, 03/17/2013 - 09:39 | Link to Comment Zero_Sum
Zero_Sum's picture

Can anyone name the last time that a euro-muppet parliament vote didn't (eventually) go the way that the troika puppetmasters wanted it too? This will pass the Cyprus parliament before market open on monday. As we speak, realities and consequences are quietly being made clear to any Cypriot legislators who may still cling to ideals or illusions for sovereignity.

Sun, 03/17/2013 - 09:49 | Link to Comment Water Is Wet
Water Is Wet's picture

TARP was the king sabotage.  The euro muppets have nothing on Hank P.

Sun, 03/17/2013 - 09:47 | Link to Comment JamesBond
JamesBond's picture

they're between a Troika Rock and a Mafia Hard Place as it were....

 

 

jb

Sun, 03/17/2013 - 10:08 | Link to Comment Solarman
Solarman's picture

Cyprus is a small country.  Would you vote to steal your neighbors money?  How would you like to be lookin over your shoulder the rest of your life?  Russian mobsters kill for far less than someone stealing their money, and the mobsters who kept their money there, they are probably too dirty to get into Switzerland.

 

Form me, if i was in the Parliment, I'd pull an Obama and vote present.

Sun, 03/17/2013 - 10:24 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

there will be compromise.  locals will be exempted.  foreigners, who were until now benefiting from lax tax laws, will get a haircut.  larger one than planned to make up for the locals.

Sun, 03/17/2013 - 11:18 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

Russian mafia will have no qualms about drawing up a death list of the 29 Cypriot legislators who vote yes on this. 

 

Long concrete galoshes. 

Sun, 03/17/2013 - 11:11 | Link to Comment MS7
MS7's picture

If the Cypriot government is anything like the government in Athens, they could care less about upsetting the yogurt-throwing locals. But the Russian mafia is an entirely different matter. There is no way they are going to take money from them, no matter what the EU threats are.

Sun, 03/17/2013 - 14:37 | Link to Comment itstippy
itstippy's picture

+1 for the term "yogurt-throwing locals".  Har.

I've heard that Cypriots are an emotional people who will take things to the streets when unhappy, so it may be inaccurate, but "yogurt-thowing locals" is still damned funny.

Sun, 03/17/2013 - 10:46 | Link to Comment Banksters
Banksters's picture

Zero sum'

Yes, they always get their way.  Until they don't, and then we'll see a real shit storm.   It is just a matter of time... tick tick 

FUCKING KABOOOOOOOOOOOM.

Sun, 03/17/2013 - 09:23 | Link to Comment Element
Element's picture

Italy is not Cyprus

Sun, 03/17/2013 - 09:35 | Link to Comment sockratte
sockratte's picture

and uganda is not spain
lol

Sun, 03/17/2013 - 09:38 | Link to Comment Element
Element's picture

Cyprus is not Iceland

Sun, 03/17/2013 - 09:51 | Link to Comment toys for tits
toys for tits's picture

And Dan Quale is not John F. Kennedy.

Sun, 03/17/2013 - 10:14 | Link to Comment francis_sawyer
francis_sawyer's picture

& Nixon wasn't a crook...

Sun, 03/17/2013 - 10:04 | Link to Comment Room 101
Room 101's picture

And Cyprus is not Greece. 

Sun, 03/17/2013 - 10:29 | Link to Comment francis_sawyer
francis_sawyer's picture

& I'm not Lisa ~ My name is Julie...

Sun, 03/17/2013 - 13:11 | Link to Comment BeaverFever
BeaverFever's picture

+1000
Great song!

Sun, 03/17/2013 - 09:25 | Link to Comment spanish inquisition
spanish inquisition's picture

President Nicos Anastasiades has warned, Cyprus's two largest banks will collapse

Right out of Hank Paulson's playbook.

Sun, 03/17/2013 - 09:26 | Link to Comment Winston Churchill
Winston Churchill's picture

 Hank Poulsonopolis  to the rescue ?

Sun, 03/17/2013 - 11:09 | Link to Comment machineh
machineh's picture

Where is Mike Samaras's bazooka?

Sun, 03/17/2013 - 09:34 | Link to Comment swissaustrian
swissaustrian's picture

Just offer the parliamentarians .1% of the tax revenue to their personal accounts and everything will be ok.

Sun, 03/17/2013 - 10:05 | Link to Comment NoDebt
NoDebt's picture

You nailed it.  Sounds too much like the threats made by the WH over the sequester cuts, too.  I had a similar comment in one of the other threads- the "false choice" of possible outcomes being presented.

I got this feeling those banks won't fail on Monday/Tuesday even if this highly dubious plan is mercifully voted down.

Still, if this shocking plan triggers a REAL bank run, they will still fail, just that it will take a little longer and not happen in the way that was threatened.

Sun, 03/17/2013 - 14:43 | Link to Comment mjcOH1
mjcOH1's picture

"I got this feeling those banks won't fail on Monday/Tuesday even if this highly dubious plan is mercifully voted down. Still, if this shocking plan triggers a REAL bank run, they will still fail, just that it will take a little longer and not happen in the way that was threatened."

'The plan' is self-fulfilling. At this point, all Cypriot banks seem likely to fail Monday/Tuesday if the plan isn't accepted. What depositer would trust the Cypriot government to make them whole when the banks fail and they've already refused the best/last offer for a German bailout they'll be getting.

Sun, 03/17/2013 - 09:25 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

I vote for the collapse.  Am bullish on popcorn.

Sun, 03/17/2013 - 09:26 | Link to Comment Popo
Popo's picture

There is no more "private ownership".   Anything can be confiscated.

Real estate owners are little more than tax serfs.   Trading accounts can be locked.   Money in the bank can be stolen.   Gold can be confiscated, and transactions can be taxed at 90%.

*This* is what the end game looks like.   Everything you think you have, you will not have.  Ownership is an illusion created by the State until the State deems otherwise.

Except of course for your right to keep and bear arms.   

And THAT'S why it's a right you don't give up.

Sun, 03/17/2013 - 09:35 | Link to Comment francis_sawyer
francis_sawyer's picture

If they tell me they want to take my boat ~ they can have it...

Sun, 03/17/2013 - 09:37 | Link to Comment swissaustrian
swissaustrian's picture

Confiscation diving is gonna be a booming business soon due to all the boating accidents.

Sun, 03/17/2013 - 09:36 | Link to Comment swissaustrian
swissaustrian's picture

PMs are at least not in control of the banksters if you hold them physically. Confiscation is not a 100% certainty for them, unlike deposits, stocks, bonds etc.

Sun, 03/17/2013 - 09:39 | Link to Comment Hedgetard55
Hedgetard55's picture

Same as it ever was.

 

same as it shall always be.

 

As they say, you only own what you can defend.

Sun, 03/17/2013 - 11:18 | Link to Comment aardvarkk
aardvarkk's picture

Not true.  You also own what nobody else can find.

Sun, 03/17/2013 - 09:50 | Link to Comment Mike in GA
Mike in GA's picture

Amen, Popo.  Your statement is yet another example of too much government, too big government, too powerful government.

Now the banks have gotten too big to fail and too big to jail, the government is exhibiting signs of too big to exist.  This seems to be pretty widespread, not just USA.

Crumbling collapse (already happening @ the periphery) seems to be our lot, followed in the fullness of compressed time by utter collapse.

The DoD/DHS will be the only D left standing.  This is known as taking the hatchet to budget cutting.  The 2nd Amendment will not only provide for salvation from tyranny, but individual protection once police are overwhelmed.  Thank God for the wisdom of the Founding Fathers.

Sun, 03/17/2013 - 10:05 | Link to Comment Silver Garbage Man
Silver Garbage Man's picture

Gold confiscation will be too bloody for these cowards....they (somebody) will have to get up close and personal to get their thieving hands on it.

Sun, 03/17/2013 - 10:36 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

not true.

There is no more "private ownership".

for example, the fed and all the other, except a few, central banks are privately owned by hofjuden. and look what the result is, they own the state; thus, you and all you think you have.  the state itself is a legal fiction subservient to banksters' confetti

Sun, 03/17/2013 - 13:11 | Link to Comment rambo1028
rambo1028's picture

Possesion is 9/10ths of the law bitchez!

 

Come and take!

Sun, 03/17/2013 - 09:27 | Link to Comment eigenvalue
eigenvalue's picture

We shall witness a Bloody Monday. USD & Treasuries will strengthen while everything else crashes. Gold and silver will crash the hardest. 

Sun, 03/17/2013 - 09:29 | Link to Comment Winston Churchill
Winston Churchill's picture

Hope you are right.

Have some fiat I want to exchange for REAL money.

Sun, 03/17/2013 - 09:33 | Link to Comment eigenvalue
eigenvalue's picture

The only problem right now is that the physical demand for gold from China is a bit too strong. Hopefully bullion banks can manage to defeat it.

Sun, 03/17/2013 - 09:46 | Link to Comment dogbreath
dogbreath's picture

Demand from china is too strong you say but gold is going to crash

Sun, 03/17/2013 - 10:45 | Link to Comment Agstacker
Agstacker's picture

Please don't feed the trolls.

Sun, 03/17/2013 - 09:48 | Link to Comment fonzannoon
fonzannoon's picture

haha the tv gold and silver may crash....then go out and try to buy the real thing.

Sun, 03/17/2013 - 10:16 | Link to Comment francis_sawyer
francis_sawyer's picture

hopefully the coin dealers will be studying their BRACKETS & forget to raise premiums...

Sun, 03/17/2013 - 09:54 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

Will you shut the fuck up about gold. You remind of a pathetic loser I used to work with. After his girlfriend dumped his ass all he could do is talk about how awful she was and how he always thought she was banging other dudes. When we all went out for beers one night after work and she was there making out with some other douche, I couldn't help but laugh. Kinda like when everyone here laughs at you when gold hits $2k

Sun, 03/17/2013 - 09:59 | Link to Comment eigenvalue
eigenvalue's picture

$2k gold? That's a pipe dream! I wonder why so many people trust shills like Jim Sinclair.

Sun, 03/17/2013 - 09:55 | Link to Comment Croesus
Croesus's picture

Eigenvalue:

 

Hopefully, the day will come when you can stop talking out of both sides of your mouth.

Long Duct Tape.

Sun, 03/17/2013 - 09:36 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

order placed regardless...

sticking to the SSP.....

http://www.youtube.com/watch?v=hh-xQbfOoFI

Sun, 03/17/2013 - 09:49 | Link to Comment Dugald
Dugald's picture

 Gold and silver will crash the hardest.

Realy truly you promise, pretty please????

 

 

 

 

Sun, 03/17/2013 - 10:46 | Link to Comment Schmuck Raker
Schmuck Raker's picture

We're gonna need a bigger boat.

Sun, 03/17/2013 - 09:50 | Link to Comment Comay Mierda
Comay Mierda's picture

institutions restricted from precious metal investments by their investment policies will load up on treasuries. their money managers, personally unrestricted by investment policies, will load up on hard assets and precious metals. gold and silver will rally on this, while equities will begin to price in this unprecedented political risk

Sun, 03/17/2013 - 19:38 | Link to Comment StychoKiller
StychoKiller's picture

Aurum up $9.20 right now -- you were saying?

Sun, 03/17/2013 - 09:28 | Link to Comment Zola
Zola's picture

Let them collapse and be done with it. Just do like Iceland did , grow a PAIR you bunch of Corrupt Cyprus politicians

Sun, 03/17/2013 - 09:30 | Link to Comment Lokking4AnEdge
Lokking4AnEdge's picture

Bond holders should be taken to the cleaners first.

The original demand from the EU was for 40% cut....they compromised on the 9.9%....great victory for Cyprus...hah...

Many people from Israel and Greece also had funds in Cyprus banks...all cummngled with Russian mafia money?

Something smells very rotten here.....they are hiding something much bigger than that...

Sun, 03/17/2013 - 09:36 | Link to Comment Element
Element's picture

The so-called 'Russian' Mafia is in fact a Russian-Jewish Mafia.

Numerous Wikileaks cable releases made that connection more than clear.

Sun, 03/17/2013 - 09:43 | Link to Comment toys for tits
toys for tits's picture

It doesn't matter if it's any mafia.  If there were no legitimate prosecutions prior to the crisis then all the depositors' money should be viewed the same.

Sun, 03/17/2013 - 09:35 | Link to Comment knukles
knukles's picture

Actually the equity holders should be wiped out then preferred, etc., then unsecured bond, then secured, etc, until only depositors remain intact.
Unless no deposit insurance the tough titties...

But in any case, the managements either jailed for incompetence, fraud, etc., or just plain fucking hung in public, heads placed upon sticks to warn the next buncha fuckers of impending doom...

BUT WAIT!
A lot of this is Russian money and they don't take shit like this too lightly....  Kinda in the Sicilian tradition of breaka yo legs

Sun, 03/17/2013 - 09:47 | Link to Comment Cdad
Cdad's picture

My understanding is that 20% of the deposits are Russian...per the NYT.  And if that is correct, and their deposits are confiscated so that their bank bonds can stay in tact...at least for a little while...it is a good deal for them despite any public face they put on it.  You can bet a whole lot of bond owning hedge funds are also pulling for the depositors to pay for this "deal" as well.

Now...if they could just come up with some sweet catch phrase for "deposit confiscation" so that we could move on to the next "or else" situation.

The bank crime wave continues on unabated.

Sun, 03/17/2013 - 12:06 | Link to Comment moroots
moroots's picture

The NYT says 20% of the deposits are Russian.  That's good enough proof for me.  Why bother to adjudicate property rights in a courtroom anymore, let's just let what's published in the mainstream media serve as evidence, and whatever the govt wants it to be serve as law.  Western judicial systems are a complete joke.

Sun, 03/17/2013 - 09:40 | Link to Comment toys for tits
toys for tits's picture

 

 

I don't think they are hiding anything.  All of Cyprus's depositors have 68B Euro.  That's about a month of what Bernanke is creating.

This is the German people getting fatigued over bailing out whom they consider lazy and/or criminal.

Of course it's a stupid idea to ask for depositors to pay any amount for a bank to have the privilege to keep and use depositors' money.

Sun, 03/17/2013 - 09:30 | Link to Comment Ms. Erable
Ms. Erable's picture

Go long on bulldozers, pitchforks, and rope.

Sun, 03/17/2013 - 09:32 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

look man..

if the citizens of all nations have not realized that the time to murder these banker controled bitch ass politicians and the cocksucker mother fucking sociopath bankers themselves then who ever gets their shit taken from them deserves it....

it should now be crystal clear...FREEDOM AINT NEVER GONNA BE FREE - WITHOUT SPILLING THE BLOOD OF THE OPPRESSOR - THE BANKERS!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Sun, 03/17/2013 - 09:31 | Link to Comment max2205
max2205's picture

Cyprus politicians just figured out that the island isn't that big and there's nowhere to hide

Sun, 03/17/2013 - 09:32 | Link to Comment ak_khanna
ak_khanna's picture

The foreign banks and lenders being backed by politicians of bigger and stronger countries and global financial institutions are insisting that the Cyprus banks repay them in full even though this is likely to push the Cyprus economy in recession in the foreseeable future.

Moneylending to Cyprus by the foreign banks and lenders was a commercial decision whereby they received a higher interest rate to compensate for the risk they took in lending to Cyprus. The losses of this mess ought to be borne by lenders who enjoyed supernormal profits in good times and knowingly took the decision to lend to Cyprus banks. The losses should not be borne by the depositers and taxpayers of Cyprus or the taxpayers of other European countries by funding endless bailouts.

The best way out of this mess for the citizens of Cyprus is default.

http://www.marketoracle.co.uk/Article35345.html

www.letstalkmoney2012.in

Sun, 03/17/2013 - 09:34 | Link to Comment Zgangsta
Zgangsta's picture

A bunch of pork barrel promises will be made to get the required votes.  Gold will drop $100 when everyone realized that Europe is fixed once and for all.

"But what about..."

I SAID ONCE AND FOR ALL!!!

http://www.youtube.com/watch?v=2taViFH_6_Y

Sun, 03/17/2013 - 16:28 | Link to Comment thisandthat
thisandthat's picture

Nice try with that global warming joke, pity it's cold as dead.

Sun, 03/17/2013 - 09:34 | Link to Comment holdbuysell
holdbuysell's picture

No matter which way this falls, the horse is already out of the barn. Now the people know how far the elite will go and what they will do 'when things get serious'. They will, at all costs, save the banks, people be damned.

Even if this fails, I wouldn't be surprise to see the Cypriots still yanking cash out in droves on Tuesday.

Trust is gone.

Sun, 03/17/2013 - 09:53 | Link to Comment OutLookingIn
OutLookingIn's picture

Agreed. Closing the barn door after the horse is gone.

First rule of economics;

ALL DEBT WILL BE PAID.

Either by the borrower, or by the lender.

Either with a Euro worth a penny, or with a penny worth a Euro.

It will be paid. One way or the other. Cyprus is between a rock and, well..... A rock!  

Sun, 03/17/2013 - 10:01 | Link to Comment MsCreant
MsCreant's picture

Trust? Or apathy?

I keep being stunned at how long they can can kick and bullshit.

First they came for the Cypriots, and I did not speak out--
Because I was not a Cypriot.

Sun, 03/17/2013 - 10:58 | Link to Comment Bullionaire
Bullionaire's picture

+10

Sun, 03/17/2013 - 12:57 | Link to Comment Element
Element's picture

MsC it's not that they can keep doing it, it's that the masses are much too daft to realize what's happening to do what Iceland did. Mob the Parliament immediately, bail them up in person, face-to-face, en-mass, and say; you'll do what we require you to do, or you'll die here today. That's basically what went down in Iceland the politicians had no choice and no opportunity to manufacture consent and make deals behind closed doors to betray everyone. Or else they surely would have done so, then Iceland would be in the same sort of spiral debt hole as everyone else today. The Govt also approached Russia for loans and support and even threatened NATO with providing Russia with military access if support was not forthcoming from its 'allies'. People don't remember or just don't know that Iceland really went off the deep-end at the banksters and at North Atlantic Govts at that time. If you don't really do your block and say no, and make some credible threats, then the bankers and deal-makers and assorted betrayers will not stop sticking the knife in.

Sun, 03/17/2013 - 13:20 | Link to Comment rambo1028
rambo1028's picture

Very true. Hard to tell how this is going to play out if the people stay okay with BOHICA

Sun, 03/17/2013 - 10:23 | Link to Comment Yikes
Yikes's picture

Ding....Ding.

Sun, 03/17/2013 - 09:35 | Link to Comment Lost Wages
Lost Wages's picture

The so-called "road to chaos" is the road to freedom.

Sun, 03/17/2013 - 09:50 | Link to Comment JPMorgan
JPMorgan's picture

Let them fail !!!

The cat is out of the bag, people will more than likely withdraw their savings from Cyprus banks whatever is agreed now.

Go down the Icelandic route and tell Merkel, Lagarde & Draghi to go to hell.

Sun, 03/17/2013 - 13:23 | Link to Comment BeaverFever
BeaverFever's picture

Do you really think that there's money to cover more than 50 customers in those banks?

Sun, 03/17/2013 - 09:40 | Link to Comment Motorhead
Motorhead's picture

Where's Simon Black when you need him?

Sun, 03/17/2013 - 10:02 | Link to Comment MsCreant
MsCreant's picture

No one needs him.

Sun, 03/17/2013 - 10:25 | Link to Comment francis_sawyer
francis_sawyer's picture
Pawnbroker: Burnt my fingers, man.
Simon Black: I beg your pardon?
Pawnbroker: Man, that watch is so hot, it's smokin'.
Simon Black: Hot? Do you mean to imply stolen?
Pawnbroker: I'll give you 50 bucks for it.
Simon Black: Fifty bucks? No, no, no. This is a Rouchefoucauld. The thinnest water-resistant watch in the world. Singularly unique, sculptured in design, hand-crafted in Switzerland, and water resistant to three atmospheres. This is the sports watch of the '80s. Six thousand, nine hundred and fifty five dollars retail!
Pawnbroker: You got a receipt?
Simon Black: Look, it tells time simultaneously in Monte Carlo, Beverly Hills, London, Paris, Rome, and Gstaad.
Pawnbroker: In Philadelphia, it's worth 50 bucks.
Simon Black: Just give me the money.
Pawnbroker takes watch and gives Simon Black a $50 bill
Pawnbroker: A pleasure doing business with you.
Simon Black takes money, then looks at display case for another potential business transaction
Simon Black: How much for the gun?
Sun, 03/17/2013 - 11:20 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

Where is Dr William K Black when you need him?

 

The guy locked up over 1000 Wall Street financial crooks back in the 1980s after the S&L crime wave. 

Sun, 03/17/2013 - 12:38 | Link to Comment Element
Element's picture

Him and the Krug are doing lunch.

Sun, 03/17/2013 - 09:41 | Link to Comment swissaustrian
Sun, 03/17/2013 - 09:42 | Link to Comment Motorhead
Motorhead's picture

The US says it has gold, too, hee hee.

Sun, 03/17/2013 - 14:48 | Link to Comment Matt
Matt's picture

10 tonnes of gold is ~$500 million. If Germany's offer is still good to lend Euros secured with $1 gold for every $10 lent, they could borrow $5 billion that way. Probably a better idea than causing bank runs and robbing people outright.

Sun, 03/17/2013 - 09:45 | Link to Comment hornster
hornster's picture

A tax on bank deposits??  wtf

They print money to prop up the banks then scare away the depositers?? wtf

Perhaps TPTB have given up on inflating their problems away thru monetary policy in favor of a panic policy.  Cyprus would be a good place to start.  Money under the mattress would tend to get spent.

Sun, 03/17/2013 - 09:46 | Link to Comment toys for tits
toys for tits's picture

 

 

The funny thing is that even if their parliament doesn't vote, the run that has happened so far and that will continue to happen will cause these banks to lose a lot more than the 16B Euros they were going to receive.

It's like trying to save a hedge fund with everyone wanting to redeem.

Sun, 03/17/2013 - 09:47 | Link to Comment sabra1
Sun, 03/17/2013 - 10:00 | Link to Comment lakecity55
lakecity55's picture

Whoever Chunkymark is, he's figured it out.

+1 for the cool rant.

Sun, 03/17/2013 - 10:14 | Link to Comment Blagio
Blagio's picture

+1 was a bit disappointed the words "Barney Rubble" and "Wankers" wasn't used.

3:17 - Priceless!

 

 

Sun, 03/17/2013 - 09:52 | Link to Comment slingshot
slingshot's picture

Russsian hot money will certaiinly flee Cyprus to safer grounds.  How will the banks survive that? 

I wouldn't be surprised at some type of violent repercussion by the hot money owners to dissuade atttempts by the elite to steal their money.    

 

 

Lords of the Mafia - Russian Mafia (full dcumentary)

http://www.youtube.com/watch?v=x9iyjXIno7M

Sun, 03/17/2013 - 09:55 | Link to Comment Quinvarius
Quinvarius's picture

Those banks are already collapsed.  If they open on Monday morning after this bailout, they will be out of business by nightfall on bank runs.  Do the bankers and politicians actually think there is some thing they can do here that doesn't involve printing fresh money or complete collapse?  It isn't even up to them to declare the banks are insolvent.  The banks ARE insolvent.

Sun, 03/17/2013 - 09:54 | Link to Comment lakecity55
lakecity55's picture

So, then, it's Tits Up for the PTB?

(and we get the bill).

Sun, 03/17/2013 - 09:56 | Link to Comment Nussi34
Nussi34's picture

The Euro brings peace and prosperity to Europe!

Sun, 03/17/2013 - 09:57 | Link to Comment dogbreath
dogbreath's picture

"Europe is starting to freak out."  LOL

Sun, 03/17/2013 - 12:43 | Link to Comment Element
Element's picture

This thread needs an Anthem:

https://www.youtube.com/watch?v=4KUL9-eNXzQ

Sun, 03/17/2013 - 09:57 | Link to Comment sumo
sumo's picture

"the new Dutch president of the Eurogroup Dijsselbloem declined to rule out further depositors haircuts in other Eurozone countries such as Greece, Spain or Italy"

The confiscations are already planned. They'll lie about it right up to moment they do it.

 

Sun, 03/17/2013 - 11:30 | Link to Comment machineh
machineh's picture

The peripherals better study their holiday calendars.

Three-day weekends, bItCHeZ. 

That's when The Man grabs your fiat.

Sun, 03/17/2013 - 13:09 | Link to Comment Arius
Arius's picture

you know there is no free lunch ... now it is payback time ... they enjoyed the free spending and all that ... so, its logical i would say they have to pay back

Sun, 03/17/2013 - 09:58 | Link to Comment Croesus
Croesus's picture

Bottom Line:

"Hot Money" or not, the mandated theft of 'someone else's money' will do tremendous damage to the level of confidence that Europeans (and anyone paying attention) have in the banking system.

It also sets an extremely dangerous precedent: what's to stop other banks/governments elsewhere from doing the same thing? NOTHING.

What's to prevent the "tax rate on deposits" from being a lot higher in other countries where similar events will probably happen? NOTHING.

It also demonstrates the lengths that governments will go to, to protect the banking class, as if we didn't have enough evidence already.

Whether they pass the vote or not, the damage to confidence is already done.

Once confidence dies, it's game over.

Sun, 03/17/2013 - 11:32 | Link to Comment machineh
machineh's picture

They've already indicated that a 40% stability tax is the goal.

Today's 9.9% heist is just a down payment.

Sun, 03/17/2013 - 14:58 | Link to Comment hooligan2009
hooligan2009's picture

sort of like a permanent 5% witholding tax on bank deposits, regardless of the rate of interest, so todays US bank deposit rate would be -5%?

i think bernanke is looking for input into his model so he can test what happens when you break the "zero bound"

Sun, 03/17/2013 - 10:09 | Link to Comment MarcusLCrassus
MarcusLCrassus's picture

More fearmongering by the suicide bankers. Theyre basically saying what Jamie Dimon said to the US government in 2008: "Give us your money or we blow up your economy!"

Sun, 03/17/2013 - 10:06 | Link to Comment pies_lancuchowy
pies_lancuchowy's picture

Janusz Korwin Mikke (allegedly 'eccentric' Polish libertarian, of course portrayed as a total wacko in the lame-street media) said a few days ago: 'we will put 3/4 of those politicians and banksters to jail for a long time - and they should be grateful to us: because otherwise , nationalists will come in a few years, and simply MURDER them, one by one.

Sun, 03/17/2013 - 10:51 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture

bullshit talk.  i hear that polaks were disarmed during communism.  the banksters now control the state and policia will protect them.

Sun, 03/17/2013 - 11:20 | Link to Comment Vooter
Vooter's picture

LOL...yeah, just like the police have ultimately "protected" every ruling class throughout history....

Sun, 03/17/2013 - 10:13 | Link to Comment Catullus
Catullus's picture

I thought about this more...

How is this to a customer doing business with Cypriot bank any different than what happened to an MF Global customer? They're basically using client funds to meet a margin call. This time by the ECB instead of JPM.

Just do what everyone does in a margin call. Don't pick up the phone. Take a long lunch. And liquidate the position.

Sun, 03/17/2013 - 10:14 | Link to Comment Navymugsy
Navymugsy's picture

Sad thing is here in Limassol there's a huge Carnival parade running down Makarios avenue with tens of thousands in attendance. Nobody's too worried until Tuesday morning when the banks open.

 

I will be posting pictures of the crowds at the major Cypriot banks if Tyler allows that sort of thing.

Sun, 03/17/2013 - 10:34 | Link to Comment MsCreant
MsCreant's picture

Tips: tips [ at ] zerohedge.com

If you got some thing good they WILL get back to you.

Sun, 03/17/2013 - 10:35 | Link to Comment MsCreant
MsCreant's picture

Double post, apologies.

Sun, 03/17/2013 - 10:35 | Link to Comment Treason Season
Treason Season's picture

Gotta have special posting rights for images. Send them to Banzai, maybe he'll put them up.

Sun, 03/17/2013 - 10:15 | Link to Comment Ban KKiller
Ban KKiller's picture

Long booze, passports,canned goods, short small island banks. Also still long bulldozers with full tanks...

Get set....ready....major bank run!

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