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Cyprus President Says Parliament Will Still Reject Bailout Plan, "Making Other Plans"
So much for the credibility of Reuters' Greek FinMin "unnamed" source. After the newswire presented the latest Eurogroup statement as if it was one where all deposits under €100,000 will be tax exempt, which was not the case, CNA reported a little while ago that the government has submitted a revised bill according to which only deposits under €20,000 would be exempt, and everything between €20K and €100K would still see the previous 6.75% levy. The parliamentary economic committee would discuss the bill ahead of plenary a debate scheduled for 6 p.m. Cyprus time. However, now as MarketNews reports, that is likely moot.
- CYPRUS PRESIDENT: PARLIAMENT BELIEVES BAILOUT PLAN UNJUST, GOVERNMENT MAKING OTHER PLANS.
- CYPRUS PRESIDENT: PARLIAMENT WILL REJECT BAILOUT PLAN –MNI
Amusingly enough, this echoes what Russia's former FinMin Alexei Kudrin just said, who added fuel to the fire:
- KUDRIN SAYS CYPRIOT TAX WON’T PASS, GOVT COALITION IS CRUMBLING
Of course, as we said nearly a day ago, if there is no consensus on the term of the bail-in, it is assured that there will be no vote today either, and possibly none tomorrow, and so on, which means that with both banks and stock markets closed through Friday, Cyprus may end up in permanent stasis indefinitely.
Alternatively, parliament may just vote, reject the bailout, tipping the country into bankruptcy, forcing it to exit the Eurozone, and finally pushing Europe beyond the Rubicon. From a somewhat more credible Reuters:
Cyprus's parliament was set to reject a divisive tax on bank deposits in a vote scheduled for Tuesday, a government spokesman said, a move that would push the island closer to a default and banking collapse.
A weekend announcement that Cyprus would break with previous practice and impose a levy on bank accounts as part of a 10 billion euro ($13 billion) EU bailout prompted some turmoil on European financial markets on Monday.
Cypriot and euro zone officials have sought to soften the initially proposed levy of 6.75 percent on depositors of up to 100,000 euros and 9.9 percent above 100,000 to ease the burden on small savers.
But passage of the bill in the 56-member chamber, where no party has a majority, was unlikely and it was not clear if the vote would even go ahead later on Tuesday if leaders were sure it would be rejected.
"It looks like it won't pass," Cypriot government spokesman Christos Stylianides told state radio.
The House of Representatives was expected to meet at 1600 GMT (12:00 EST) . Rejection of the measure would effectively block a bailout that Cyprus needs to keep its banks afloat and government paying wages and welfare.
Finally, just to give a taste of what would happen if things work out as hoped, the country's Central Banker, appropriately named Panicos, said Cypriot banks stand to lose more than 10% of their deposit base within a matter of days if a levy on bank deposits is imposed. "If the draft bill passes, we would see deposit outflows of 10 percent or maybe more in the first few days," central bank chief Panicos Demetriades told the Cypriot parliament's finance committee. He added that the central bank's and the European central Bank favoured scrapping the levy for all deposits below 100,000 euros, in line with the position expressed by euro zone finance ministers late on Monday.
He is absolutely correct, except for being a little dyslexic - what he meant was 100%.
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Okay, time to let those stupid and pathetic Greeks in Cyprus fall over the cliff. They want it. They get it.
The black cygnet hatched Friday. It will be a full grown swan within two months.
Screw you......get your own money bitchez!
If Merkel whats some money from me....she can come mow my lawn and take out the trash.
http://www.youtube.com/watch?v=Zvl9N9GdraQ
Deposits under 100K were guaranteed. That's it. 100K+ are free game for the banksters, Russian or not.
Anyone have any spare computer monitors you're not using?
http://www.youtube.com/watch?v=Y7ZN2F_7K7U
actually a deposit with 100k+N was garanteed up to 100k and free game is only for the rest of N
It's actually 100k per depositor, per bank - e.g., if you have a joint account, it's 100k x number of account holders (except for societal accounts) - here's how it pans out, from Banco de Portugal: http://translate.google.pt/translate?hl=pt-PT&sl=pt&tl=en&u=http%3A%2F%2... (where it says "The", in the tables, it should be "A")
Of course, everybody is entitled to a free bailout by german's taxpayers. And to 100%, of course! If we dare to only contribute 80% and demand that you at least also shoulder some burden, then "we want your money". WTF??? Let Cyprus go bk - we germans are so fed up with paying for everyone. We will give them ZERO - and demand ZERO. Now, that would certainly be a better deal for Cypriots, no?
That is better.
2014, era of the new German Mark.
Oh really?
So tell me, did you ever paid up your WW2 debts and destruction, by any chance? You know, the stolen and destroyed wealth and physical patrimony; economy, infrastructure and society rebuilding; deaths, physical and psychological damage compensation; financial losses, including loss of profits; etc. and so forth?
Because, as far as I know, it went pretty much like this: your victims ended up paying for their own recovery, either straight by themselves or through Marshall Plan (which ended up meaning pretty much the same, for worse, btw), and, in the mean time, you got yourselves a brand spanking new country, as "punishment" for your evil doings, courtesy of said victims, all the while promising to pay back something like a mere 5% of your annual growth...
Max Keiser actually mentioned Germany's war debt to Greece, regarding Greece's bailout, estimating it --just for stolen gold and forced upon and never paid back bank loans-- at around, at least, 500 hundred billion Euros, by today's value...
what day this week does the market open?
The markets are open.....but the bank is still closed.
Introducing you to Cyprus, the first new Russian state in decades.
Yes ... Cyprus and Greece both, natural allies of Russia with the shared traditional Christian Orthodox religious faith
They should both leave not just the euro-zone, but the EU ... make a deal with Gazprom and Russia for the undersea resources with which both countries are in fact quite rich
Default on the bondholders
Start a new life ...
That may well be the 'making other plans' ...
God speed to the Cypriots if they have the courage to pull the plug on this shite
"Making other plans."
Do these plans include bulldozers?
lol...we are the deciders of fairness & law on the fly!
€20,000.01...pay up you elitist suckers!
They cannot reopen the banks now!! All deposits will now be automatically converted into equity of the bank. Prospectus is in the mail. Depositors entitled to dividends "as, when and if declared" and subject to the rights of bondholders.
they must quit the euro and introduce a new currency before opening the banks.
CYPRUS PRESIDENT: "I did not have #%* with that Cyprus bank account...I wish the press would let me get back to work focussing on the people's business..."
Even by exempting deposits under 20k, they're still shredding the deposit ins. scheme which is the biggest concern. And also by making that exemption, they create a shortfall in the 5.8bneuros needed. interesting times, got my beer and popcorn ready.
On the plus side, it should give a much-needed boost to Cyprus' burgeoning rope industry. Lamppost sales should also see a bump.
my dick gets hard just thinking about these motherfuckers hanging from light posts, all I can hope is that day isnt too far off.
Banker lynchings - the new Viagra.
Rev up the bulldozers and backhoes. Time for Cyprus to begin renovating their banks.
One per hour until Merkel cries uncle.
They will lose well over 10% when the banks open even if it doesn't pass. The threat of this happening is enough to start that much of a run ...
Yeah, not sure where he's getting 10% from. I'm thinking about pulling all my money out of the bank and I'm half a world away from this clusterfuck.
Next stop, Switzerland.
Haven't these clowns heard of a printer.
Shit this is old technology, I know cypress is behind the times, but couldn't Benny just send them one of his old ones, just on loan for a while?
Havent they been taking notice of the new normal?
The problem is this is NOT a liquidity issue. Cyprus is insolvent. In other words ... Cyprus needs big dollars every month to make payments. Cyprus has a negative balance sheet.
The only problem a printer can't fix, is an ink or paper shortage...
Anything else looks manageable!
Just ask Benny...
corzined yet-send the honorable over there to "get-er-done"
The IMF found that there wasn't the claimed money laundering going on in Cyprus.
Germany, Austria, Finland and the Netherlands don't trust the findings reached by a team of IMF experts last autumn with regard to Cypriot money laundering activities. The experts from Washington came to the conclusion that Cyprus is largely playing by the book and only minor legislative amendments are required.
http://www.spiegel.de/international/europe/imf-and-europe-disagreement-c...
I have full faith and confidence in the IMF (sarc)...
The BIS might have to step in and open up a can of whoopass.
+1 great find
So what. Meredith Whitney said yesterday she is more bullish on equities than ever in her entire life.
As the jackboot upon the neck will make one gasp for air and helpless it leaves the bankers to manipulate the pants pocket.
Would not be suprised (past the dog and pony show) the the Cyprus GOLD is within the grasp of the troika.
Cyprus current gold holdings are round 14 tons and at todays confiscation price is roughly a tweener number of 7.1 billion---as Two Minds would say
HHHHMMMMMM
http://www.24hgold.com/english/stat_country_detail.aspx?pays=Cyprus&deid...
Too bad Cyprus is land locked....or they could just put their gold on a boat.
Just out of curiosity, are American banks any healthier? What group can dictate liquidation terms to American banks?
A top of the line French bank can do the job.
Funny, I just read that one of the Dutch opposition party is asking questions why they don't tax the Dutch Savers who have money in their account.
That'd be EPIC. Amazing ZH is didn't wrote an article about that in Holland.
The Dutch...famous for their Euro soft core
Cyprus does not have any good solutions, its a choice between a hard place and a rock :
What Is Cyprus 'Plan B' - Business Insider
It will either kill the offshore banking industry of Ruski money in Cyprus or the economies of the small guy there.
Merkel has been very clear : your problem your solution; and guess what?
It will apply in ALL of peripheral Club Med!
The Cyprus bail -in will be proposed by EU to all of Club Med! Your bank debts : your Oligarchs shell up first via wealth tax!
Its your decision how to spread that around but your local oligarchy or small/ medium investors pay first; especially tax dodgers. Stop asking us Core members to bail you out, even if its via sterilised ECB printing; as we have no more good collateral in the EU!
Game over solidarity! And, if the people's appraisal and resistance to wealth taxation is perceived as elastic then it will apply also to the core!
When thieves fall out, I hope the message is clear for all of WS/CIty Q-infinity printing presses and Russian Oligarchy scam tax evasion Oligarchs.
This lady has boots meant for walking; and its election year in Deutschland!
There is a third option which is very radical: make a big deal with the Russians, become a defacto colony.
1.) Leave the EU.
2.) Allow a Russian naval base.
3.) Allow Gazprom to access the offshore oil and gas reserves.
4.) Get a full bailout by the Russians and turn down the EU/IMF/ECB offer.
5.) Don't touch deposits.
Referring to 2 above: Are you sure that the British navy will just walk from their bases in Cyprus and happily rent them to Putin? It might be a little more complicated.
Depending on the contractual arrangements with the British, they could either keep the bases or terminate the contracts.
Desperate times = desperate measures.
If this were to happen I would hope that income tax rates in Cypress were " harmonized" with Russia, in which case Cypress could quickly become the Singapore of the mediteranean
Given the close trade and financial ties with Russia, it would certainly make more sense for Cyprus to be a Russian colony than to be a EU colony. Freed from all the EU regulative garbage, it would become an offshore haven, as you said.
That'll take big balls from Putin and the GAzprom potential must be bigger than we understand today in their waters + Strategic Medit naval base should be tempting.
But putting down 30 B to bail out the Cyrpus banks, thats awesome risk taking in Nato back waters...I guess they do have that money; seen what they spend on their yachts!
Cojones ! Putin Bey if you do it!
I'm all for it falak, but do you realise that there is a majority that falls in the "tax dodgers" category here? It's not the few or the infamous 1% as OWS would put it, EVERY FUCKING BODY dodges taxes in every possible (and sometimes impossible) way. Apart from the locals and the (known) Russians Cyprus is the tax heaven for many Greeks, and many of those "Domestic" cypriot accounts are Greek money disguised as local under various legal mantles.
So what would normally look as a quest for financial justice imposed by the many upon the Oligarchy is actually a shot in the foot for the majority of people. Well, I guess one day we'll have to pay up one way or another.
I'm expecting to get junked by all the tax dodgers, ROFL...
russian business in Cyprus IS NOT TAX EVASION, it is simply the way to trade with EU avoiding all sorts of trade barriers. Russian businesmen were opening companies in Cyprus (EU member) to be able to trade - EU partners were insisting operating via Cyprus subsidiaries because of the application of EU laws which they understand well (and not russian laws poorly understood by westerners)
From the Reuters report:
"...If you're a small depositor in Cyprus you'll tell yourself that it would have been better to keep your money under the carpet than in a bank," said a French bank executive who declined to be named. "And if you're a Greek, a Spaniard or an Italian, well, you'll tell yourself that you might be next."..."
Are Paris and Berlin trying to scare deposits into French and German banks?
No, ever heard of target2?
Other plans?
Well that certainly leaves a wide territory open for speculation...
here in my local sionist satrapy(Arab Division), internet banking has been not functional since (at least)Monday morning. I assumed it was just specific to one bank till this morning when I called customer service and got a very a dodgy response...so I checked with my other online bank...same thing...no login functionality.
I will indulge in a little speculation of my own here...because we are outside the Eurozone, our Turkish banks(at least half of which are direct or partial subsidiaries of zombies like Unicredi etc.)have orders from headquarters to get ready for a forthcoming levy\tax\forfeiture\your favorite term here\ and the programmers are working feverishly at it right now.
Given the jitters all over the EZone , it's clear that they could not do the same thing there...it would lead to immediate bank run and system failure. So there's something more stealthful being prepared there...
and if you somehow believe that means the other side of the pond will be spared whatever it is they are planning, good luck with that...there's only one system now...and to paraphrase a famous half-wit who somehow convinced Merikans to lease him their WH for 8 whole years....'this sucker may be going down.'
I'm hitchin up an goin to town to see what's what at the bank...the media is suspiciously silent. I don't know anything else at the moment, cept that they are sure to have something up their sleeves for us goldenholders too, and that those who foolishly wished for them to 'bring it on' will find that their wish fulfilled is unlikely to present a pleasant prospect...only Higher Powers(as to be found inside our powerful spiritual selves) can protect us now...
looks like March 21st is gonna be some kind of special day. Hey ecep buddy...you out there? I'd love to have your confirmation or refutation of the situation here!
hi there,
i did not have a problem with online banking so far this week. there are no problems with cash withdrawals, either. but the banks are in dismal shape. the office space of the branches are getting smaller and smaller. and interestingly, the bank branches are selling their own properties and moving to much smaller rentals. in the past, major branch offices were allways the property of the bank. well, not any more. the number of staff has decreased to a minimum. the tellers hate their jobs, their customers as well as their managers.
Thanks for the update e-cep...
I'm back from my trip to town, and have had a chance to think abit about that visit.,
There is, as you say, not a problem (yet) with transactions conducted within the bank. What I saw looked normal.
But the makings of a fake out are everywhere...upon examination.
a) a pending transaction I had from Friday which was supposed to be completed Monday.Once they knew in the branch that I knew online banking was done they flat out told me that the internal systems were down since Monday...and still down. The are clearly not telling customers anything is unusual...unless they have to.
b) in the branch they were of the notion that the system problem was their own banks'; I had to inform them that the same login dysfunction is happening with other banks...(if you logged in successfully since Monday morning, this is a complicated piece of the puzzle...some banks and not others? Unless yours is one of the government owned ones, and it's the foreign based ones here that are ramping up for something on instructions>!>????
I'm thinking on my feet here...there's something wrong with the picture but I'm going to need time to puzzle further...maybe on a newer thread I'm update my thoughts...and look forward to your further ones.
i feel that the banks are seriously underemployed. they may be employing IT people with average abilities, not the top dogs. that could be the reason. on monday i did a few transactions without any hiccups.
on the other hand, private debt is huge in turkey compared to public debt (excluding municipalities). i have no figures at hand but most of it could easily be mortgages. the property bubble has not popped yet but the appreciation has stopped. if things start rolling downhill the banks may end up in serious trouble.
Officer Tony Baloney says: Just stay on the fucking curb folks.
Yeah, and Tufty the road safety RoSPA* squirrel used to say
Mommy, Mommy! Ms Merkel! why are you lying in the middle of the road with tire tracks upon your back>>>>????? Wahh...I don't like this!!! ...I want to go home and eat ice cream! Mommmmyyyyyyyyyyyyyyyyyy!!!!!!!!!!!!!!!!!!!!
*Royal Society for the Prevention of "Accidents" ...man, that's some phuked up shit!
Okay, but they were smokin grass on NYC sidewalks on St. Paddys day. And the cops said they couldn't arrest um all, cause they no where to put um.
Cyprus has a stable ground to screw around.
Drhagi will do whatever it takes to save the Euro anyway. So let them just stick up their middle finger to the EU and Merkel.
I think that the epic outflows of deposits are gonna make sure that they'll need a second bailout a few days later after the first bailout passes (if ever). Then they'll have to tax deposits again which will ensure the need for a third round...
Regardless of what happens from now on, the Eurocrats have destroyed trust in the Cypriot banking system. Trust is the only thing that held money there in the first place. An electronic bank run will follow if the banks ever open again.
Yes. Trust has beem destroyed.
More importantly, The rule of "Law" has been superceded by the needs of private entities.
Private property, and true ownership has been shown to be an illusion.
If It's not in your hand... it's not yours.
Trust has beem destroyed
Thank goodness for Stockholm syndrome.
"Making Other Plans"
I bet consulting with officials in Iceland is part of it.
Went and cleaned out my Cyprus bank account at a machine in Kolossi this morning. Thank god those ATM's have a 900 euro limit. I ony have 16 euros left in there and I'll grab that (if) when the banks open again.
Short sharp comment from Steve Keen:
http://www.debtdeflation.com/blogs/2013/03/19/eus-cyprus-madness-should-...
"central bank chief Panicos"
Every now and again the beings behind the curtain just drop us a little clue about what's really going on. Hey at least they have a sense of humour.
Reminds of a response to the LIBOR theft; at one point, I'm not sure if this was serious or not, the idea was mooted of creating a new benchmark called the London Interbank Monetary rate, or LIeMOR...I can really see Panicos heading up the LIeMOR committee. This is all descending into farce anyway.
Panicos - sounds like the name of a new currency for the EU periphery
Reject the current BS deal, put temporary capital controls in place, and go to the Russian's and strike a deal with them.
Cyprus has gas resources so I'm sure a fair and mutually beneficial deal could be struck.
FUCK ZE GERMANS.
Its the Fourth Reich, only this time an economic empire.
Fick Dich Herr Merkel and your enablers, the EUSSR, ECB, IMF.
If this "bail-in" was about pleasing northern european voters about recouping costs for bailouts, then this pushes the rift even wider between North-South and the EU is spirally towards a civil war, albeit for now it is not armed conflict.
If this "bail-in" was about punishing the Russians for using Cyprus as a tex haven, then beware - DONT FUCK WITH RUSSIANS, especially their women and their money. The Russians can easily turn the gas off, and we all know Russia has Germany by the balls in the energy sector.
In the end, the sad irony is that the EUSSR project was all about peventing Germany from being powerful and conflict from engulfing Europe. Who will get the last laugh on that one?
"He [Panicos] added that the central bank's and the European central Bank favoured scrapping the levy for all deposits below 100,000 euros, in line with the position expressed by euro zone finance ministers late on Monday."
Panicos is now saying that the ECB favoured the exclusion of deposit accounts with less than €100,000. Earlier information asserts that the whole idea of expropriation of private savings was an ECB idea (Asmussen) in the first place. Which also explains why Draghi is lying low. It all begins to look like a classic socialist tactic: so many people and committees are involved, nobody knows who said what, therefore nobody is responsible and nobody is accountable. But the policies get implemented anyway.
So, maybe the Cypriat politicians were considered too small and unimportant to threaten and bribe into submission and still have some morals and ethics left.
Just an oversight that will be corrected ... my guess.
GOVERNMENT MAKING OTHER PLANS - like what ? - Folding under Mr. Putin ?
Other plans should include telling the EU to eat shit and fuck off.
That is a great plan. Remember fiat is all a confidence game. Cypriot banks have been destroyed here and there is no going back. When they open they better have truck loads of Euros on hand because that giant sucking sound you hear is going to be spring cleaning on the bank deposits. The higher they set the over 100,000 amount the more destruction it will bring. I would have a hard time imagining there being any more than 10% of the deposits left in Cyprus a month from now. (If the banks can open and are still operating in Euros that is)
I don't mean to hijack the thread, but does anyone have a link to the leaked Blumenthal-Clinton memos?
The ONLY outlet even mentioning them is The Smoking Gun. Where are they?