The Sun Just Set On The German Empire In Cyprus As Locals Tear Down German Flag

Tyler Durden's picture

While images of burning flags in the middle-east are not unusual and we have become numb to visions of angry mobs stomping over Western flags, the sight in the clip below of the typically calm and serene Mediterraneans turned Cypriot mob climbing atop the German Embassy in Cyprus and tearing down the German flag may well be a glimpse of what is to come in the next few days as the government nears their voting deadline and banks near their re-opening...


Via ekathimerini,

Protesters took down the flag at the German embassy


Many people have gathered outside the presidential palace, in which a protest on the agreement between the government and the haircut Eurogroup for deposits.


Protesters hold banners and shout slogans against the Troika and the Memorandum. Earlier, demonstrators portion en route to the Presidential Palace, went to the German Embassy.


Protester climbed on the roof of the building pulled down the German flag from the mast and threw it on the road. The other protesters tried to get the flag, but police who were lined outside the embassy and collected. The police presence in the area is important, but discreet.


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Irelevant's picture

This is going acording to plan. The banks will never reopen.

The Juggernaut's picture

Monetary Revolution begin!!!

fightthepower's picture

Big deal, call me when they start hangin' folks...

TruthInSunshine's picture

All the VSP (Very Serial People) from Krugman to Bill McBride to Noah Smith are like, totally dismissing the barbar(ous)ians at the gate. I think they've even put out an SOS by smoke signal to Nate Silver for some statistician backup.

They're all like "Cyprus is totally tiny, and like so chock full of Russian Mafia seriously...whatttevahh..."

Krugman & McBride are totally buying huge blocks of CRM, ZNGA, GRPN & LULU. Like, OMG, there's always a bull market somewhere, fer sure.

insanelysane's picture

The last time I checked, no mafia likes having their money confiscated.  See JFK.

maskone909's picture

Correction** the federal reserve doesnt like having their money threatened... See Executive Order 11110

MagicHandPuppet's picture

A nice, healthy game of Capture the Flag.  Victory!

mjcOH1's picture

Dear Cyprus, your required contribution to the bailout of your banks is now $5,8 billion plus....the rest.  

You can keep the's a small price to pay,  considering the alternative.....bitchez....

Bicycle Repairman's picture

LOL. Governor Connolly stole Oswald's lunch money.  JFK got in the way.  A tragedy really.

franzpick's picture

And the scum corporate media doesn't understand that the world's biggest dam break can start with denial of and inattention to the world's smallest fingerhole leak.

TruthInSunshine's picture

If people would just realize that stocks are really the way to go, and quit making everything so complicated.

Unlike fiat currency stored in banking institutions, or some metal dug from the ground, or really smelly, nasty oil that kills baby polar bears when it leaks into icky puddles, stock certificate values are soooo stable, and the people who, like provide guidance as to future stock valuations, as well as the exchanges stocks are traded on, are like really, really trustworthy and soooo totally honest.

I am sooo just buying the best performers of the Nasdaq and sleeping well at night. Even Alan Greenspan, who everyone knows is like the most brilliant economist of our time and maybe all time, recently said that "only the stock market matters."



permafrost's picture

This sounds awfully familiar:

Subprime is totally tiny

Greece is totally tiny

Ireland is totally tiny

Portugal is totally tiny

Spain is not Uganda

Freddie's picture

All the Hope & Change ***k ***king Democrats and union goons.  Blame them for what is coming plus the RINO scum and Bushes.

Crash Overide's picture

"Big deal, call me when they start hangin' folks..."

They sure showed Z Germans, one flag for one haircut...

knukles's picture

Matters not...
An endless supply of Chinese made flags abound

Joe Davola's picture

10% may seem like a bargain when all is said and done.

Irelevant's picture

They will be lucky if they get 10%.

Al Huxley's picture

10% that you can't get because the banks deducted it from your account balance, and 90% that you can't get because fractional reserve lending falls apart when everybody tries to get their money at once.  Tough luck Cyprus.

Irelevant's picture

What is happening is actually extremely interesting. Under the Cypriot Constitution (art. 24/3) it is illegal to have any retroactive tax "whatsoever". The banks are commercial enterprises and the state is not liable for their actions. Yet the banks are closed because the state said so but there is no official order to that respect issued by the state. In other words, if the banks don`t open tomorrow they are breaching contract law and criminal law, as they are denying depositors right to propriety and the state is not liable for that. If the state were to issue a order to keep the banks closed the courts would most likely suspend said order in hours. These banks will never reopen, they are filing for chapter 11 soon, very soon.

There is no exit from this situation at this point, because if the banks ever reopen $100 billion would try to run away from Cyprus instantly. Guess what, said money has long ago been invested in Greek bonds. There you go Dimitri, I guess Russian mafia get fucked.

Meat Hammer's picture

Constitution!  HAHA!  That's cute.  

merizobeach's picture

Hm, perhaps the 'living document' strategy is actually a discreet way to forecast/manifest that which happens to all living things eventually.

Bicycle Repairman's picture

Yeah.  Cypriot Constitution.  Since when?  Like 1960?

zhandax's picture

Yet the banks are closed because the state said so

No, the banks are closed because it's a national holiday.

merizobeach's picture

Pretty sure he was referring to Tuesday and Wednesday.

Irelevant's picture

And this begs the question what other lawyers already know that the words of the Eurogroup are not "law" and will open the banks tomorrow for "selected" customers and make transfers possible for a 10% fee lets say that goes to banks. It would not be illegal, banks know this, I think they will do it.

Meanwhile the poor Cypriots will be protesting and tearing down flags infront of the German embassy resting assured that when the banks reopen they will only be "levied" for 10%.

Al Huxley's picture

I agree.  I commented on an earlier thread that the only way to avoid a bank run (and thereby let the MSM cheerleaders pretend that this is a non-event) is to just extend the bank holiday perpetually - eg 'see, everything's fine, you'll get MOST of your money as soon as we open, which will be really soon, probably any day now, we're just working through a few details on the paperwork....'. 


Related, I'm really pleasantly surprised at the non-response so far in the price of PMs.  Its like being able to buy insurance on your house AFTER the hurricane's hit.

Irelevant's picture

Normalcy bias is a blessing from that perspective.

Mr Anderson's picture

You are so right about it being interesting... The best bet for the people of Cyprus would have been the 40% confiscation that the IMF had proposed. The money would have been removed from the banks and put in the govt acct. This would be roughly 20 Billion. Enough to cover the govt loans and bring them back into parity.  The banks would open and the russians would take their 60% back to russia and the bank would go belly up, which it will anyway. The banks open and the run will take them out no matter what. The question is if the govt goes bankrupt with the banks, thats really the only question left. A 15% haircut of the over 100 K will give the govt enough to pay back their IMF loans, in which they then get loans of 15 Billion to keep them operating a while longer.  The russians still remove all their cash and the banks go under. Its game theory now and there is no outcome that doesn't involve the banks going under. Its a matter of who gets the assets the banks own and does the govt get enough of the assets to stay afloat.  

Freddie's picture

Crime gangs like Obummber, UAW, Democrat Party, EU, The Federal Reserve, BOE and ECB.

Timmay's picture

Throw that free spider man towel up there.

resurger's picture

IT could have been avoided if they gave 8.525% for both!


myptofvu's picture

The banks go under and the Country's depositer insurance can't cover either then the folks lose all their money not just 7 or 9 percent.

SDShack's picture

You are buying the false paradigm. You have to start thinking like a banker to learn how to defeat them. You assume the banks go under because of the rules. What this fiasco demonstrates is there are no rules. The rules are being made up by the powers that be so you will never get the truth from them. The only way to stop them, is to not play the game by their rules. Call their bluff. You will soon find there are more than just the 2 false alternatives that were initially presented (deposit theft, or bank failure). The rules will be re-written because the can must be kicked. The banks can't go under yet, because there isn't adequate containment of the risk if that happens. That is why you were only given 2 dire alternatives to choose from. Lose 10% (bad) or lose all (worse). Bankruptcy is not a viable alternative because the bankers lose. The bankers will rewrite the deal so they don't lose. Bank on it.

fonzannoon's picture

"The  ECB is like a bankruptcy attorney for the banks"

beppe grillo

tickhound's picture

"El gran banco (bank) de nuestro paraiso (heaven)......... de la BUUUUUUNdesbank!"  LMAO!

beppe grillo

1C3-N1N3's picture

Chopped it for ya, tickhound.

"BUUUNDESBANK!" (thunder!)

Element's picture

aaaannnnnnnd ........ it's vaporized

tickhound's picture

 until as Beppe so eloquently points out...

L'emorroidi Grande will "Stampare e Prestare, Stampare e Prestare, Print and Lend, Print and Lend..."  lol

Comedy is dangerous!

PontifexMaximus's picture

And he is fully right and he will make it!

Diogenes's picture

The depositors should lose nothing. We know what is supposed to happen, we have hundreds of years of banking law and banking practice to learn from.

As soon as liabilities exceed assets even by 1 Euro, the bank is insolvent. At that point a bankruptcy trustee takes over and pays out the money. First to depositors and creditors, then to bond holders, finally whatever is left goes to the shareholders.

The management of the bank is fired and disgraced, and never work in banking again.

This gives bankers and bank employees an incentive to be very strict and very careful when it comes to handling depositors money.

As soon as they threw all the old rules aside, events like today's became inevitable.

post turtle saver's picture

This post needs a +1 gazillion... at least.

SDShack's picture

Yep, that's what should have happened, but those rules all died in 2008, if not long before. Greed is the only rule today. It's why they keep kicking the can. They will rewrite the rules over and over, pushing the masses to their breaking point, over and over, until they get what they want. It is war of attrition. If they push too far, like in this case, don't worry, they will back off and re-write the rules yet again to protect themselves. The bankers never lose because they write the rules. The only way to beat them, is to not play their game. Iceland got it right.

Mr Anderson's picture

I was under the impression that the purpose of the levy was not to Bail the banks out, but to bail the govt out.  The govt has debts they cannot pay. The EU will not give them more loans unless they can pay the EU/IMF on a portion of what they already owe. So we tax the depositers- This means that the banks have to come up with the (CASH) overnight to pay the govt 8.7 billion. Most of the banks don't have that kind of cash on hand so they have to sell their assets in greece to raise the funds to pay the govt. excess reserves the bank has on hand is also used. The banks become smaller by this action and are hurt a little bit but at least they do not have to pay back the depositers. The Cyprus govt can then pay on the loans they owe. The EU/IMF will them give the Crypus Govt 14 billion in loans so that they the govt can pay the Crypus banks what they owe them. The end result is the Govt doesn't go under, the banks are reduced in size and scope. The russians pay a hefty fee for this all to occur and the people get hit as well. This is one of those things that looks good on paper but what they didn't account for is that everyone with money in the banks will the create a bank run. the Russians will repatriate their wealth and the banks will go under. I'm assuming the IMF knew the banks would fail because this breaks all the covenants so they wanted at least 40% of all deposits taken by the govt. so that the govt could then pay out on their insurance for those with under 100K and the IMF still gets paid on what the govt owes them. Because they canary has been let loose its game over because the banks are guaranteed to fail bc the russians will pull out. So who are the winners? The people with money will swoop in purchase the assets of said banks at firesale prices, the depositers are wiped out and so are the bank investors.  The question is does the govt fail or not?

IdiocracyIsAlreadyHere's picture

And of course the rules have been turned on their ass and the repayment order has been changed to (1) CEO and other bigwig (parasite) bonuses (2) shareholder dividends (3) enough of a bone to bondholders to hold off open revolt and (4) depositors and ordinary creditors GET TOTALLY REAMED AND SCREWED.

DoChenRollingBearing's picture

On Saturday, when all this Cyrpus stuff broke here at ZH, I wondered if this was going to be "one of THOSE weeks"...  Yes, I guess so.  Off to buy gold now...