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ECB Responds To Cyprus, Says "Will Provide Liquidity To Cyprus Within Existing Rules"
We were waiting for the ECB response, and seconds ago we got it, when the ECB uttered the magic words, saying it would provide "liquidity within existing rules." What this means is unclear, but the algos loved it and sent the EURUSD up over 50 pips higher in milliseconds. What the algos apparently don't get is that this does not account for the additional liquidity needed that would only be released if Cyprus passed the bailout vote. The last thing the ECB wants is to appear weak, and fold letting every other broke deadbeat country to demand the same equitable treatment and diluting Germany's political might. For now however, the is a move to be faded.
This is not news as the ELA was always there... and the market realized that as soon as ES hit VWAP... fading now...
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Hah! CNBS stll looking around for this news! Geese!
shocking on many levels </sarc>
And now back to our regular programing...Moar QE
Thursday banks open, 5 mins later banks close, 5 more mins banks declare bankruptcy.
Would someone please help me with my headline sniffing algo? It seems to not know which end is up today. I was told all I needed to do was start one of these and I'd be minting money.
And yet all Becky Quickie will want to talk about is which stock will be pumping her today. Or something like that.
+1000
Rofl. Goddamn stock-pumping whores!
Good point, I'm sure a visit from Ivan the Terrible, before the banks open to the public, will empty out anything before the Cypriots even get a chance to wthdraw one "red" cent.
UK flying in Euros to its citizens there looking increasingly wise as banks remain closed with no REAL opening date in sight, no matter what ECB, IMF, or others say. Money will be moving
I wonder if the English put JUST A FEW extra soldiers (better yet commandos), ammo, weapons, supplies, and food on the big military transport planes, along with the small stack of pre-paid credit cards that more easily could have been sent to the 3500 sovereign soldiers via single-engine cessna.
What I'm saying is, very strange would it be if LARGE CARGO PLANES were sent to essentially deliver credit to only 3,500 people.
maybe they were spraying contrails on the way?
That's chemtrails sir...
That caught me off guard. Well done
"What I'm saying is, very strange would it be if LARGE CARGO PLANES were sent to essentially deliver credit to only 3,500 people."
---------
How much gold can one of those planes carry? It has to return to England (London), right? If you are going to propose a consiracy theory, do it right.
Gold is YOUR conspiracy theory, Oscar the Grouch! YOU back it up.
I'm saying, there is more than meets the eye.
Right, small coins. Because 3500 soldiers will mutiny unless they can access the islands arcades and gumball machines, DOPE.
No, gold is my only safe store of value. I like the dope theory. You are correct though, it make no sense. Why go public at all? Just notifiy all those soldiers via the chain of command that they will have the option of being paid in cash or direct deposit to a safe bank in London. I remember recieving all kinds of confidential memos when I was AMEDD. Something is amiss.
That's my only point. The announcement ITSELF can cause a panic.
Simply issue a memo to the commanders IMMEDIATELY for them to cascade: DO NOT MAKE WITHDRAWALS. YOUR ACCOUNTS ARE INSURED BY THE QUEEN OF ENGLAND. YOU WILL BE PROVIDED WITH TEMPORARY FUNDS AND YOUR BASES WILL BE STOCKED UNTIL THE BANK HOLIDAY ENDS.
No it isn't. There is a 'round robin' RAF cargo plane that flies UK-Cyprus-Afghanistan-Ctprus-UK every day moving mail, spare parts etc etc. Likewise there is one flying UK-Germany-Cyprus-UK and one flying UK-Germany-Northern Ireland-UK.
It it isn't pre-paid credit cards either. It's €1M in cash in small euro notes and coins.
Well, actually, its all the RFID chips in the CC's that caused the extra weight.
No it isn't. It's flying in €1M in order to make sure that there is cash to pay it's 3,000 soldiers if they can't get money from the banks by the weekend.
The 20,000 UK citizens on the island are on their own.
OK, I'm a British soldier or military person, one of 3500 or so on that island. That euro 285,71 (1 million euros divided by 3500) is going to make or break me survival-wise, even though I already live on a base.
Makes sense.
</sarc>
Better yet, I'm a British soldier, and if I don't get my euro 285,71 from the govt., I will mutiny, defect, go AWOL on an otherwise very civilized subtropical island, or otherwise abandon my post and tell the Queen to go eff herself. Over euro 285,71.
I'd buy that, for a dollar!
Perception often times is reality. 'A Million liquid' has a nice ring to it and will placate the nervy sheep.
Why make an loud announcement? Why not just ship in supplies? Why not just say, "no worries, your salaries will be deposited in accounts here in England and will be safe, in the meantime, take this small cash advance and hunker down."
1 million euro is a drop in the bucket. They can just ORDER their soldiers and staff to not try to make withdrawals, and insure their accounts back at home.
FISHY, I SAYS.
Damn Good Deal!
http://www.youtube.com/watch?v=-DUfx22O4kw
No worries...the algos have created yet another inverse H&S for everyone to pounce on. Boy, do they love those patterns. Sometimes intraday, sometimes over a few days, sometimes over a couple months, like in mid-2010. Complete, absolute, artificial market.
....and as we all know, the FED supplies ECB's liquidity via swap lines etc... Mentioned this earlier that Uncle Bernank will acknowledge this tomorrow. There you have it!
bingo.....no coincidence that the vote happened today before the fed meetings
Yep, more QE. Circumstances not so good this time around, though,
C'maaawwwwwwwn. How has the ECB solved all of the other problems with the PIIGS in the past 3 years? This is just the .2% Cyprus econ. CTL-P and it's solved.
Neeeeeeeeeeeext!
CNBS and Bagdad Bob Bloomsberg have spent 2 days telling the sheeple how all the bad news out of Cypress just doesn't matter. However, they then start spouting how this "good" news on Cypress should boost the markets.
They must all need a shower after doing this type of work all day.
News flash. Bloomsberg just stated there was no great rotation, it was just a one time bump from all of the end of the year fiscal cliff stuff.
In other words, 1 good point is a trend whilst the nth bad point is just a single point that shows nothing.
They sure are, also it's insane for the EU to pull the stunt the did and then go ahead and give them the money. All this means is that they fear any default in the bonds and derivative markets that could lead to a chain reaction.
This is a red herring. From David Zervos:
The die is cast. There is no going back for the Cypriots or the Eurozone leaders. As soon as the banks open in Cyprus there will be billions in withdrawals. The question of course is – “where will the money come from?”. Well , if the parliament votes YES, then the Euros will have to come from the Eurosystem. But there is a glitch. The Cypriots have already borrowed 10b euro via the ELA and Target2. How can Mario just wire over 20 billion more (less the 10 to 15 percent haircut) for the Russians, and another 20 to 30 billion for the wealthy Greeks. What collateral will an economy with 20b in GDP post to get this cash? Unless Mario violates every collateral rule at the ECB, the Cypriot financial system will collapse even with a YES vote. style.
Right, because they have never "violated collateral rules before". None of these fuckers have had an ounce of fucking integrity/credibility so far, what makes you think they will now? All paper going to fucking zero, period.
.
ECB will print, and then blab about sterilization.
An illegitimate organization will print fake currency. GREAT!
Welcome to Club Fed.
Printing since 1913, and a proud member of Global Ponzi.
cypris, the country that doesnt matter, ....yet the light it cast is big enough to expose the entire system....
When things are serious you have to print. LOL. Let's see Draghi posture himself out of this one.
There is a poorman, living under an overpass, waiting to tell us all "I told you so, bitchezz."
The currency will not go to zero, only to the point that they print a note of ponzi to buy up everything with value.
Perfect plan, and going as planned.
They can only buy what is available for sale. When the supply lines break, the world goes to war. Same as it ever was I guess.
So many useless eaters, so little time to dispose of them all.
You are correct (I don't know about going to zero). However, first they exposed that deposit insurance is a sham. Next, if they do provide liquidity it will the whole collateral rules is a sham and that no one should trust anything the EU, IMF, ECB, FED, or BOJ has to say.
Rules are for suckers. The Bankers will be protected at all cost.
Currency will go right past zero accelerating to negative infinity and beyond!
So will Thursday be the day the Cypriot banks open back up?
ON your marks.....................................
Get set.............................................
WITHDRAW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
and ....... it's gone!
wishful thinking - big limits on withdrawls coming
Yep. The banks will open on Thursday, but not more than 5% of the total account or 50 euros, whichever is smaller.
New Roolz.
im thinking its gonna be more like...what do you need it for?..let me check with the manager....we will let you know in a few days....NEXT...
Does this concern only Cypriotic banks? What about foreign banks operating on the island?
Don't tell me the Cypriotic banks have nothing as collateral upon which they've created the leverage? There are derivatives, I'm sure. German banks admit to be sweating a loss of 6 billion EUR already. That's only a start. Who else?
The question is in this likely bank-run scenario.
Who will be calling upon whom to satisfy their liquidity? There is a good chance of a domino effect now and even if the ECB tries to backstop the withdrawal requests, there is a risk of contagion to other banks, countries and so on.
Ordinary people around the globe are paying attention and TALKING about "money in the bank" and how safe it is.
There's no backstop big enough to block the cascade of potential global withdrawals from this overleveraged and virtually bankrupt system.
Ordinary people are filling out there ncaa brackets.
Honestly...we are all going to get sucked into the great bank run here?
maybe so or maybe not... but i took out a big stack of FRN today just to 'do my part'.
{I'll exchange it with my coin guy prior to a boat trip this weekend...}
Could I interest you in a copy of "Esso's Remedial Maritime Safety Rules"? Only costs an ounce.
wrong-o - there will be capital controls - limits on withdrawls - big limits - maybe even a new withdrawl 'fee' of say, um, 6.75 to 9.9%
the algos put out the rumor
U.S. equities ramping up instantly. Entire system = massive fucking joke.
Skynet has achieved consciousness.
Skynet can't be that stoopid.
provide liquidity within existing rule is after all what the ECB is for. continental-size liquidity is, after all, something that can smooth many wrinkles, particularly if applied on small countries
like dipping your sister's head in a vat of cream
Lol ... so the ECB will be buying Cypriot government and bank debt. It is the Eurocrat's latest "feddish".
ECB can't vote in the Cypriot parliament last time I checked.
Ummm...look in a dictionary/encyclopedia under "central bank." You will see the ECB's statement there.
Herr Merkel, you are very sexy.
- John Corzine
You meant ... Frau? Or, not.
Flasher.
Yet to be determined.
LOL
Thank you ECB for triggering my stop loss!
now THAT was some algo smut!!!! based on how short lived that move was, might be the clearest signal to me yet that this thing is for real.
HFR (High Frequency Rumors) trading.
Welcome to the hotel California ---
"Last thing I remember, I was Running for the door I had to find the passage back To the place I was before "Relax, " said the night man, "We are programmed to receive. You can check-out any time you like, But you can never leave! "
print dat funny "money"
Never seen a currency purely supported by hot air before. Fail and have done with it, already.
What!? And, allow you to escape the 9th level of hell?
Going to end near the lows?
costas Lapavitsas : http://www.guardian.co.uk/commentisfree/2013/mar/19/cyprus-troika-plan
Existing rules apply to Euro countries. What guarantee does the ECB have that this will be the case in the near future?? The odds are probably very small that they would leave the Euro, but still a possibilty.
This whole mess could actually save the Cypriots their money. The ECB will provide liquidity which means when banks open, Cypriots close their accounts and get 100%. The Cypriots win. Yeah for little guy!
If I remember right, the ending of that nursery rhyme is "all fall down".
Just think if "provide liquidity"
were replaced with
"Don't trip! We'll print cha'all some money, nigga! Ain't nobody gonna know we jackin' they savins to pay fo it"
People might get concerned.
"Oh Stewardess. I speak jive." - 'Airport'
Liquidity for a for real bank run?
Like trying to piss out a brush fire!
pods
Playa don want no fiat
Playa don get no fiat
"Rules?" ... "We don't need no stinking rules."
Note to Ecb.. too late for dat! Here comes the Selloff!
Gotta love the photo at Der Spiegel while its still there.
http://www.spiegel.de/international/europe/cypriot-parliament-rejects-ba...
Thank you, ECB, for doing what you were designed to do in the first place! Of course these clowns wouldn't let State/ECB-guaranteed deposits under EUR 100k slide, because otherwise the EUR would be defunct as a currency & EU dissolved by the end of the Summer.
This whole charade feels as BLACKMAIL.
While Russian money could help Cyprus to avoid bankruptcy, it could be the nail in the coffin for Nicosia’s relationship with the rest of the EU. The next few days are unchartered territory for the currency bloc – a potential bailout funded by a foreign country, especially Russia, throws the whole currency bloc into jeopardy. What next – Brazil bails out Spain, New York chips in to save Italy?
http://www.telegraph.co.uk/finance/debt-crisis-live/9939296/Cyprus-bailo...
Do you think they realise that they inadvertently printed the truth?
Even if Cyprus gets the € bailout, there isn't any reason for the markets to rally. All the macro news sucks. The algos don't care though. BTFD
Yen I am on an island over here but I have not bought into this thing from day one. Neither has the market. The media keep pushing this whole mess but I see Bernak coming out tomorrow and talking his usual shit about QE4eva and the market just ramps back up.
Show me a massive bank run in Spain/Italy and I will sit up and pay attention. Someone will throw a lifeline to those Cypriots and life will go on.
Fonz I think Bernanke might have a little 'foot in mouth' tomorrow. I wouldn't be surprised to see some intraday selling. Also no POMO tomorrow.
the algos are always good for a daily laugh. what a fucking joke.
bottom line- cyprus is fucked, europe is fucked, banks are fucked, we are fucked. that should be a major sell signal, but in this market its buy buy buy. fuck them
This underscores the whole farce. What does any of this matter when the central banksters will print to eternity.
The Cyprus parliament has more integrity that the rest of Europe combined.
Greek, Italy, and Spanish citizens: "Get your money out of the banks now, Draghi will give them enough moeny so that you don't lose deposits." You have been told, now do it.
The last thing the ECB wants is a nation to leave the Euro and actually have an economic recovery/boom.... it would show the world how crippling the Euro Currency is to their country.... nations would leave in droves and the ECB would lose all its power.
Bluff called. BTFD.
Crisis is over
Bitcoin at $57??
http://goldsilverbitcoin.com
how about that for liquidity?
Telling that never is an unambigous statement given.
May a billion central banks fluorish.
Just a few lingering odds and ends to sort out and the everything will be GREAT !!!
Wow, so they think this was unpredictable? Busting out the buying that was in the market makers' pipeline? And the ECB itself is providing the cover for the scam.
They just had Marios Mavrides, a Cypriot MP on Channel 4 news (UK). This was before the ECB announcement. He pretty much sounded like he expected a bank run. He said they would pay out euros until they ran out, then they'd hand out pounds. This wasn't picked up on by the interviewer, bur presumably he meant Cypriot pounds rather than GBP
notice how at the end of the trading day they issue this whack ass, soon to be revealed meaningless statement to send the equities back thru the roof at the close...
but how does this yet to be substantiated and nebulous statement change the dynamic created by the threat of confiscation...if u r in the Eurozone having been told that your worthless debt based currency can be stolen from you and you can be denied access to the remainder indefinetely would that move you to not pull all your shit out when you finally could????
and what can the EC Fucking B do but what bitch ass Bernanke has done....CREATE MORE WORTHLESS PAPER SHIT OUT OF THIN AIR DESTROYING THE LAST REMAINING VALUE OF THE WORTHLESS SHIT YOU GOT HIDDEN IN YOUR UNDERWEAR....
dont matter if its in the mattress or in their fucking insolvent banks....
THERE R ONLY 2 FORMS OF REAL MONEY...PHYSICAL GOLD AND SILVER....
BREAKING NEWS: Martians have decided to provide earth human with WARP technology so that they can all disappear in the solar system and end the farce once and for all.
EU gonna make it rain up in this club...BITCHEZ!!! Money back on free flow.
Risk on...BITCHEZ!
I do not believe we have seen the final attempt to raid citizens' accounts. This was just a shot across the bow...a move to get people used to the concept. They will float this idea again and again until they find somewhere that it works and then it will be Katy-bar-the-door.
If they'd had any sense at all they wouldn't have tried it in a country with so much Russian money. They will pick more carefully next time. And believe me, there WILL be a next time.
It would make more sense now to attempt it in a core country, no one would complain.
Correct. All this proves is that attempting stealing 9.9% is too much for the sheep to take - next time, they'll try 6.9% and see how that goes.
Fuck em all.
I think the straw that broke the camel's back was they tried to steal INSURED deposits. They won't try that again. But for any money held over the insured amount in an account.....to quote South Park...."Annnnnnnnd it's GONE!"
One question fascinated my curiosity on this botched up Euro Cyprus deal :
WHO PROPOSED THE TAXATION OF THE LOWER ECHELON DEPOSIT HOLDERS THAT IS GUARANTEED ACCROSS THE BOARD IN THE EU PROTOCOLS POST 2008 CRISIS; AKA <100000 EUROS DEPOSITS WHICH ARE GOVT GUARANTEED IN CASE OF BANK RUNS?
It was this issue that triggered the Cyprus parliament refusal; they wanted that rule applied and the Plan B propsed limit of<20000 E, thus did not correspond to the deal.
Now we get some insights on this issue as tongues start wagging to protect your ass in the chancellories :
According to French Finance minister Moscovici it was adopted under the initiative of Cypriot Fin MIN who wanted to protect the Russian oligarchy contingent as they were the mainstay to the banking sector of Cyprus.
According to German Fin Min Schauble it was the ECB and the IMF ! Draghi and LAgarde...who insisted to punish the whole country to make this deal appear less non selective. Schauble goes on to say he vigourously protested evoking the EU rule of small depositors but got shot down by the other Troika members!
So SCANDAL, two TOP FIN MINS of Euro zone have expressed divergent views on this KEY and illegal aspect of the plan.
Can you imagine the rage now being felt in IMF and ECB against German uber practices.
This really shows the EU is totally incoherent on this issue as probably on all the other ones. Merkel is wallowing like a whale if this is EU nitty gritty realpolitik !
Chypre: le grand retour de la crise européenne
Perfect, just in time for the US market close.
Coordinated and timed to a Tee....
I Watch
cypriot bank protest http://www.youtube.com/watch?feature=player_embedded&v=_Go8tnl21MU
Cyprus' gotta break free from the EU yoke. No going back. Nothing but certain sovereign murder by death from the EU. Anything else is better. EU is just making overtures now to quiet things back down so they don't spook the other PIIGs and sheep.
EU is now the Donner Party and Cyprus just managed to slip away this time. Cyprus better not fucking go back to check out the funny little noise coming from the basement without a flashlight or they lose all sympathy from me.
I agree with you gwar - Iceland was smart to run away when they did. Sure, they're hurting right now but I'm guessing they'll be a lot better off than the rest of us in the long run.
Yikes, this'll mess with Tyler's "Algos in Charge" graph -- may need a logarithmic scale. At the same time, for those lamenting "the machines are in charge", in reality it hasn't quite come to that -- they're not yet writing their own code, for only a silly human could write the following:
IF TIME >= 3:00 est
AND headline CONTAINS (ECB OR Fed OR Hilsen-wrath OR Kobe Bryant)
THEN Ramp quickly to VWAP
ELSE IF no headline AND currently above VWAP
THEN plummet to next lower pivot from 3:12 - 3:25 AND ramp to VWAP by 3:52
ELSE ramp up to next pivot to fuck shorts by 3:25 THEN slide back to VWAP by 3:52
Well, at least it has proven that one move the common muppet has to get the elite's attention, is to simply go and take your money out of the bank.
If everyone did this to protest the "next thing" - then maybe shit would get done, instead of politicians over here arguing over the official count of mouse farts in a wind tunnel.
Fuck Occupy Wall Street - just go make a withdrawl. Everyone.
I bet a lot of russian private jets flying into the airport right now...for their deposit removel on Thursday...and many government officals and their familes are doing it today...because they have "friends" in the banking business.....stealing is going on as we speak....last one out loses of course....thursday is going to be FUBAR....i would not want to be a bank teller that day..lol....this is a shot across the bow....it has awakened some sheeple....fun to watch..but you don´t want to be a part of it....
I am still interested in thoughts of what exactly Brussels expected to happen by pulling a stunt like this.
My own opinion? "Trial balloon".
And I know it's been asked a lot here already, but just how bad are things if Brussels and the banksters had to resort to tactics like this? Or, is this just them reaching new heights in their attitude of "Eff the population, we'll do whatever it takes around here to make ourselves wealthier and more powerful."?
european voters have outgamed themselves..they vote for polticians they know are stupid so that the politicians can't spoil the voters lives...
oops...
***My own opinion? "Trial balloon".***
That's what I'm thinking, but the idiots tipped their hand as to what their endgame is. Anybody leaving money in a bank, brokerage or retirement account is a soon-to-be broke fool.
Best be stacking & prepping. The end is drawing near. I'm waiting for the announcement of a "one-time" federal property tax. That'll be sweet.
A bank that remains closed to its depositors is NOT a good omen....
Forget the depositors, I think the bank is remaining closed to its withdrawlers.
So much outrage over the theft of individuals deposits, (as well there should be). But where is similar outrage at the theft from all those individuals who pay taxes in US (supporting IMF), and from the individual taxpayers of Germany, Finland, Austria, Netherlands for providing all these endless bailouts, and the theft of value by ELA printing from rest of euro holders? No, I guess it's more okay to steal from all these people in order to bail out banks that catered to/laundered money for Russian billionaires. The theft by the government entities and banks needs to end. Let the friggin' banks fail and chips fall where they may. Only way the never ending messes and moral hazard of privatized profits and socialized losses are going to get cleaned up.
F*&K! I am dying for a correction here. Can't catch a break!
Customs official; "What is the cargo of this plane on an unscheduled flight to Cyrpus?" Schaublebabble; "This is stabeeleetee for die Euronasia Onion" Customs official; "What is the cargo that is being sent to Cyprus on this plane?" Schaublebabble; "The plane is full of paper und kerosene, das ist alle." Customs official; "What kind of paper is this plane carrying?" Shaublebabble; "Das is der scheise dat dreams were made of" Customs official; "I am sorry, your flight is canceled. We do not allow dreamliners with people, we are not going to allow it with bomb making material."
Cat, meet bag. Now get the fuck back inside!!
Luckily there is ONe cool cat in the EU who knows how to print and soothe the jangled nerves of the market.
He does look like the pink panther; he just lacks the colour!
We suspect Vlad Putin made a few private phone calls before sending in the Spetznaz boys from Sevastopol. Merkel can't deal with that and everyone knows it. This is just a giant asshole bluffing contest.
We suspect Vlad Putin made a few private phone calls before sending in the Spetznaz boys from Sevastopol. Merkel can't deal with that and everyone knows it. This is just a giant asshole bluffing contest.
Is it really a big deal if Cyprus declares bankruptcy??
Cyprus is the PR campaign to float the idea that depositors SHOULD own part of the bank that holds their money.
Depositors SHOULD know the health of the bank they choose. The Depositors should have skin in the game. Depostors SHOULD want to have some ownership in their bank. If the bank has to use Depositor monies to remain solvent, this is a good thing....yada yada yada.
Now New Zealand is on to it. There will be more as the idea get socialized. The elites are NOT stupid. Wherever there is a dollar, it's theirs!
""liquidity within existing rules." What this means is unclear,"
It means the same as this from the movie Hot Dog:
http://www.youtube.com/watch?feature=player_detailpage&v=_Qe3HBqFhTU#t=187s
"The rules are....there are none!"
Eurogroup Chairman Jeroen Dijsselbloem Should Resign For Trying To Confiscate Bank Savings. Long Live the Individual Financial Liberty And Freedom of all Cypriotic and European citizens and foreigners no matter the size of the savings!
Please like and share this facebook page if you agree!
http://www.facebook.com/pages/Dijsselbloem-should-resign/410669842362350
Cyprus called their bluff and they know it.
What are you going to do, ECB, let Cyprus leave the EU? Hahahahaha.
Cyprus doesn't have to pay a dime and they will still get bailed out from now until Germany is flat broke.
is it Liquidity or Solvency they need because those are very different things...