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ECB Responds To Cyprus, Says "Will Provide Liquidity To Cyprus Within Existing Rules"

Tyler Durden's picture




 

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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Tue, 03/19/2013 - 15:19 | 3348958 rubearish10
rubearish10's picture

Hah! CNBS stll looking around for this news! Geese!

Tue, 03/19/2013 - 15:23 | 3348992 insanelysane
insanelysane's picture

shocking on many levels </sarc>

Tue, 03/19/2013 - 15:24 | 3349004 Frozen IcQb
Frozen IcQb's picture

And now back to our regular programing...Moar QE

Tue, 03/19/2013 - 15:28 | 3349029 TerminalDebt
TerminalDebt's picture

Thursday banks open, 5 mins later banks close, 5 more mins banks declare bankruptcy.

Tue, 03/19/2013 - 15:37 | 3349086 Atlas_shrugging
Atlas_shrugging's picture

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.

Tue, 03/19/2013 - 15:37 | 3349090 redpill
redpill's picture

And yet all Becky Quickie will want to talk about is which stock will be pumping her today.  Or something like that.

Tue, 03/19/2013 - 22:59 | 3350912 bigyimmy007
bigyimmy007's picture

+1000

Rofl. Goddamn stock-pumping whores!

Tue, 03/19/2013 - 15:50 | 3349160 ACP
ACP's picture

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.

Tue, 03/19/2013 - 15:26 | 3349010 CClarity
CClarity's picture

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

Tue, 03/19/2013 - 15:34 | 3349044 ParkAveFlasher
ParkAveFlasher's picture

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.

Tue, 03/19/2013 - 15:37 | 3349089 LFMayor
LFMayor's picture

maybe they were spraying contrails on the way?

Tue, 03/19/2013 - 15:43 | 3349131 Vigilante
Vigilante's picture

That's chemtrails sir...

Tue, 03/19/2013 - 15:44 | 3349135 zdk45
zdk45's picture

That caught me off guard. Well done 

Tue, 03/19/2013 - 15:55 | 3349182 LawsofPhysics
LawsofPhysics's picture

"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.

Tue, 03/19/2013 - 16:07 | 3349242 ParkAveFlasher
ParkAveFlasher's picture

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.

Tue, 03/19/2013 - 16:14 | 3349269 LawsofPhysics
LawsofPhysics's picture

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.

Tue, 03/19/2013 - 16:17 | 3349281 ParkAveFlasher
ParkAveFlasher's picture

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.

Tue, 03/19/2013 - 15:57 | 3349192 Red Lenin
Red Lenin's picture

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.

Tue, 03/19/2013 - 16:15 | 3349276 Pure Evil
Pure Evil's picture

Well, actually, its all the RFID chips in the CC's that caused the extra weight.

Tue, 03/19/2013 - 15:51 | 3349162 Red Lenin
Red Lenin's picture

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. 

Tue, 03/19/2013 - 15:59 | 3349195 ParkAveFlasher
ParkAveFlasher's picture

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!

Tue, 03/19/2013 - 16:01 | 3349212 sdmjake
sdmjake's picture

Perception often times is reality. 'A Million liquid' has a nice ring to it and will placate the nervy sheep.

Tue, 03/19/2013 - 16:12 | 3349251 ParkAveFlasher
ParkAveFlasher's picture

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.

Tue, 03/19/2013 - 16:38 | 3349376 Fred Garvin
Tue, 03/19/2013 - 15:26 | 3349011 ACP
ACP's picture

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.

Tue, 03/19/2013 - 15:27 | 3349026 rubearish10
rubearish10's picture

....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!

Tue, 03/19/2013 - 16:12 | 3349256 spastic_colon
spastic_colon's picture

bingo.....no coincidence that the vote happened today before the fed meetings

Tue, 03/19/2013 - 16:35 | 3349355 Go Tribe
Go Tribe's picture

Yep, more QE. Circumstances not so good this time around, though,

Tue, 03/19/2013 - 15:27 | 3349025 Jacque Itch
Jacque Itch's picture

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!

Tue, 03/19/2013 - 15:36 | 3349082 insanelysane
insanelysane's picture

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.

Tue, 03/19/2013 - 15:55 | 3349189 insanelysane
insanelysane's picture

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.

Tue, 03/19/2013 - 22:19 | 3350809 Buck Johnson
Buck Johnson's picture

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. 

Tue, 03/19/2013 - 15:19 | 3348960 russwinter
russwinter's picture

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.

Tue, 03/19/2013 - 15:23 | 3348985 LawsofPhysics
LawsofPhysics's picture

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.

Tue, 03/19/2013 - 15:28 | 3349015 Peter Pan
Peter Pan's picture

.

Tue, 03/19/2013 - 15:48 | 3349151 redpill
redpill's picture

ECB will print, and then blab about sterilization.

Tue, 03/19/2013 - 16:03 | 3349219 Dan Conway
Dan Conway's picture

An illegitimate organization will print fake currency.  GREAT!

Tue, 03/19/2013 - 16:28 | 3349320 Pure Evil
Pure Evil's picture

Welcome to Club Fed.

Printing since 1913, and a proud member of Global Ponzi.

Tue, 03/19/2013 - 18:29 | 3349953 smlbizman
smlbizman's picture

cypris, the country that doesnt matter, ....yet the light it cast is big enough to expose the entire system....

Tue, 03/19/2013 - 15:27 | 3349023 Peter Pan
Peter Pan's picture

When things are serious you have to print. LOL. Let's see Draghi posture himself out of this one.

Tue, 03/19/2013 - 15:32 | 3349055 Ruffcut
Ruffcut's picture

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.

Tue, 03/19/2013 - 16:06 | 3349234 LawsofPhysics
LawsofPhysics's picture

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.

Tue, 03/19/2013 - 16:33 | 3349343 Pure Evil
Pure Evil's picture

So many useless eaters, so little time to dispose of them all.

Tue, 03/19/2013 - 15:43 | 3349130 Yikes
Yikes's picture

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.

Tue, 03/19/2013 - 16:19 | 3349292 michael_engineer
michael_engineer's picture

Currency will go right past zero accelerating to negative infinity and beyond!

Tue, 03/19/2013 - 15:23 | 3348990 Dr. Richard Head
Dr. Richard Head's picture

So will Thursday be the day the Cypriot banks open back up?

ON your marks.....................................

Get set.............................................

WITHDRAW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Tue, 03/19/2013 - 15:33 | 3349059 Frank N. Beans
Frank N. Beans's picture

and ....... it's gone!

 

Tue, 03/19/2013 - 15:42 | 3349122 semperfi
semperfi's picture

wishful thinking - big limits on withdrawls coming

Tue, 03/19/2013 - 15:58 | 3349194 1000924014093
1000924014093's picture

Yep. The banks will open on Thursday, but not more than 5% of the total account or  50 euros, whichever is smaller.

 

New Roolz.

Tue, 03/19/2013 - 18:33 | 3349976 smlbizman
smlbizman's picture

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...

Tue, 03/19/2013 - 15:36 | 3349080 walküre
walküre's picture

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.

Tue, 03/19/2013 - 15:40 | 3349109 fonzannoon
fonzannoon's picture

Ordinary people are filling out there ncaa brackets.

Honestly...we are all going to get sucked into the great bank run here?

Tue, 03/19/2013 - 16:06 | 3349239 sdmjake
sdmjake's picture

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...}

Tue, 03/19/2013 - 17:24 | 3349584 Esso
Esso's picture

Could I interest you in a copy of "Esso's Remedial Maritime Safety Rules"? Only costs an ounce.

Tue, 03/19/2013 - 15:39 | 3349102 semperfi
semperfi's picture

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%

Tue, 03/19/2013 - 15:20 | 3348968 TooBearish
TooBearish's picture

the algos put out the rumor

 

Tue, 03/19/2013 - 15:23 | 3348991 Sequitur
Sequitur's picture

U.S. equities ramping up instantly. Entire system = massive fucking joke.

Tue, 03/19/2013 - 15:25 | 3349006 Quant Jockey
Quant Jockey's picture

Skynet has achieved consciousness.

Tue, 03/19/2013 - 16:01 | 3349207 1000924014093
1000924014093's picture

Skynet can't be that stoopid.

Tue, 03/19/2013 - 15:21 | 3348971 Ghordius
Ghordius's picture

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

Tue, 03/19/2013 - 15:23 | 3348973 IamtheREALmario
IamtheREALmario's picture

Lol ... so the ECB will be buying Cypriot government and bank debt. It is the Eurocrat's latest "feddish".

Tue, 03/19/2013 - 15:21 | 3348974 swissaustrian
swissaustrian's picture

ECB can't vote in the Cypriot parliament last time I checked.

Tue, 03/19/2013 - 15:21 | 3348977 Cdad
Cdad's picture

Ummm...look in a dictionary/encyclopedia under "central bank."  You will see the ECB's statement there.

Tue, 03/19/2013 - 15:21 | 3348978 Sequitur
Sequitur's picture

Herr Merkel, you are very sexy.

- John Corzine

Tue, 03/19/2013 - 15:23 | 3348988 ParkAveFlasher
ParkAveFlasher's picture

You meant ... Frau?  Or, not.

Tue, 03/19/2013 - 15:35 | 3349073 Rustysilver
Rustysilver's picture

Flasher.

Yet to be determined.

Tue, 03/19/2013 - 15:51 | 3349167 Edward Fiatski
Edward Fiatski's picture

LOL

Tue, 03/19/2013 - 15:21 | 3348980 EZT
EZT's picture

Thank you ECB for triggering my stop loss!

Tue, 03/19/2013 - 15:22 | 3348984 DrDinkus
DrDinkus's picture

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.

Tue, 03/19/2013 - 15:26 | 3349016 tenpanhandle
tenpanhandle's picture

HFR (High Frequency Rumors) trading.

Tue, 03/19/2013 - 15:22 | 3348987 hampsterwheel
hampsterwheel's picture

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! "

Tue, 03/19/2013 - 15:23 | 3348989 GOSPLAN HERO
GOSPLAN HERO's picture

print dat funny "money"

Tue, 03/19/2013 - 15:24 | 3349001 CuttingEdge
CuttingEdge's picture

Never seen a currency purely supported by hot air before. Fail and have done with it, already.

Tue, 03/19/2013 - 16:38 | 3349380 Pure Evil
Pure Evil's picture

What!? And, allow you to escape the 9th level of hell?

Tue, 03/19/2013 - 15:25 | 3349005 virgilcaine
virgilcaine's picture

Going to end near the lows?

Tue, 03/19/2013 - 15:26 | 3349012 Rayfp65
Rayfp65's picture

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.

Tue, 03/19/2013 - 15:26 | 3349013 insanelysane
insanelysane's picture

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!

Tue, 03/19/2013 - 15:30 | 3349038 tenpanhandle
tenpanhandle's picture

If I remember right, the ending of that nursery rhyme is "all fall down".

Tue, 03/19/2013 - 15:26 | 3349020 Meat Hammer
Meat Hammer's picture

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.

 

Tue, 03/19/2013 - 15:35 | 3349071 Cognitive Dissonance
Tue, 03/19/2013 - 15:29 | 3349033 pods
pods's picture

Liquidity for a for real bank run?

Like trying to piss out a brush fire!

pods

Tue, 03/19/2013 - 15:39 | 3349101 LFMayor
LFMayor's picture

Playa don want no fiat
Playa don get no fiat

Tue, 03/19/2013 - 15:29 | 3349034 rlouis
rlouis's picture

"Rules?" ... "We don't need no stinking rules."

 

 

Tue, 03/19/2013 - 15:32 | 3349035 virgilcaine
virgilcaine's picture

Note to Ecb.. too late for dat!  Here comes the Selloff!

Tue, 03/19/2013 - 15:30 | 3349037 CuttingEdge
CuttingEdge's picture

Gotta love the photo at Der Spiegel while its still there.

http://www.spiegel.de/international/europe/cypriot-parliament-rejects-ba...

Tue, 03/19/2013 - 15:33 | 3349041 Edward Fiatski
Edward Fiatski's picture

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.

Tue, 03/19/2013 - 15:31 | 3349045 RaRaRasputin
RaRaRasputin's picture

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?

Tue, 03/19/2013 - 15:31 | 3349048 Yen Cross
Yen Cross's picture

  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

Tue, 03/19/2013 - 15:37 | 3349091 fonzannoon
fonzannoon's picture

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.

Tue, 03/19/2013 - 15:47 | 3349150 Yen Cross
Yen Cross's picture

    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.

Tue, 03/19/2013 - 15:32 | 3349049 thismarketisrigged
thismarketisrigged's picture

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

Tue, 03/19/2013 - 15:32 | 3349051 razorthin
razorthin's picture

This underscores the whole farce.  What does any of this matter when the central banksters will print to eternity.

Tue, 03/19/2013 - 15:32 | 3349054 lolmao500
lolmao500's picture

The Cyprus parliament has more integrity that the rest of Europe combined.

Tue, 03/19/2013 - 15:33 | 3349056 ThunderingTurd
ThunderingTurd's picture

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.

Tue, 03/19/2013 - 15:33 | 3349057 Dre4dwolf
Dre4dwolf's picture

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.

Tue, 03/19/2013 - 15:34 | 3349063 Catullus
Catullus's picture

Bluff called. BTFD.

Crisis is over

Tue, 03/19/2013 - 15:35 | 3349065 l1b3rty
l1b3rty's picture

Bitcoin at $57??

http://goldsilverbitcoin.com

how about that for liquidity?

Tue, 03/19/2013 - 15:34 | 3349068 SubjectivObject
SubjectivObject's picture

Telling that never is an unambigous statement given.

May a billion central banks fluorish.

Tue, 03/19/2013 - 15:34 | 3349069 barliman
barliman's picture

 

Just a few lingering odds and ends to sort out and the everything will be GREAT !!!

  1. When are the Cypriot banks going to re-open ???
  2. Go long on "aggravated robbery, assault & murder" in Cyprus - Lots of people, lots of cash, no LEGAL  guns
  3. Short the "armed security personnel" market in Cyprus - Lots of new job openings, high turnover rate, strong likelihood of intermitttent hail of bullets

 

 

 

Tue, 03/19/2013 - 15:35 | 3349072 e m m
e m m's picture

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.

Tue, 03/19/2013 - 15:37 | 3349075 Grimbert
Grimbert's picture

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

 

Tue, 03/19/2013 - 15:37 | 3349076 Kaiser Sousa
Kaiser Sousa's picture

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....

Tue, 03/19/2013 - 15:36 | 3349083 zebra
zebra's picture

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.

Tue, 03/19/2013 - 15:37 | 3349084 Fail2Deliver
Fail2Deliver's picture

EU gonna make it rain up in this club...BITCHEZ!!! Money back on free flow.

Tue, 03/19/2013 - 15:38 | 3349085 Fail2Deliver
Fail2Deliver's picture

Risk on...BITCHEZ!

Tue, 03/19/2013 - 15:40 | 3349110 creeper
creeper's picture

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.

Tue, 03/19/2013 - 15:42 | 3349126 magpie
magpie's picture

It would make more sense now to attempt it in a core country, no one would complain.

Tue, 03/19/2013 - 15:46 | 3349146 Ness.
Ness.'s picture

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.

Tue, 03/19/2013 - 15:58 | 3349198 SDShack
SDShack's picture

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!"

Tue, 03/19/2013 - 15:46 | 3349118 falak pema
falak pema's picture

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

Tue, 03/19/2013 - 15:42 | 3349121 Bunga Bunga
Bunga Bunga's picture

Perfect, just in time for the US market close.

Tue, 03/19/2013 - 15:44 | 3349134 SmallerGovNow2
SmallerGovNow2's picture

Coordinated and timed to a Tee....

Tue, 03/19/2013 - 15:42 | 3349125 max2205
max2205's picture

I Watch

Tue, 03/19/2013 - 15:47 | 3349148 gwar5
gwar5's picture

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.

Tue, 03/19/2013 - 16:01 | 3349209 Van Halen
Van Halen's picture

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.

Tue, 03/19/2013 - 15:51 | 3349168 EclecticParrot
EclecticParrot's picture

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

Tue, 03/19/2013 - 15:53 | 3349175 Smuckers
Smuckers's picture

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.

 

 

Tue, 03/19/2013 - 15:58 | 3349199 youngman
youngman's picture

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....

Tue, 03/19/2013 - 15:58 | 3349200 Van Halen
Van Halen's picture

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."?

Tue, 03/19/2013 - 16:35 | 3349356 hooligan2009
hooligan2009's picture

european voters have outgamed themselves..they vote for polticians they know are stupid so that the politicians can't spoil the voters lives...

oops...

Tue, 03/19/2013 - 18:06 | 3349809 Esso
Esso's picture

***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.

Tue, 03/19/2013 - 16:06 | 3349236 Fix It Again Timmy
Fix It Again Timmy's picture

A bank that remains closed to its depositors is NOT a good omen....

Tue, 03/19/2013 - 16:38 | 3349374 Van Halen
Van Halen's picture

Forget the depositors, I think the bank is remaining closed to its withdrawlers.

Tue, 03/19/2013 - 16:08 | 3349246 Just Ice
Just Ice's picture

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.

Tue, 03/19/2013 - 16:08 | 3349248 ilovemilken
ilovemilken's picture

F*&K! I am dying for a correction here. Can't catch a break!

Tue, 03/19/2013 - 16:12 | 3349260 Piranhanoia
Piranhanoia's picture

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."

Tue, 03/19/2013 - 16:20 | 3349294 squid virtuous
squid virtuous's picture

Cat, meet bag. Now get the fuck back inside!!

Tue, 03/19/2013 - 16:48 | 3349424 falak pema
falak pema's picture

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! 

Tue, 03/19/2013 - 16:48 | 3349431 cat-foodcafe
cat-foodcafe's picture

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.

Tue, 03/19/2013 - 16:48 | 3349432 cat-foodcafe
cat-foodcafe's picture

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.

Tue, 03/19/2013 - 17:04 | 3349505 ippotr06
ippotr06's picture

Is it really a big deal if Cyprus declares bankruptcy??

Tue, 03/19/2013 - 17:27 | 3349604 lindaamick
lindaamick's picture

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!

Tue, 03/19/2013 - 23:30 | 3350990 holdbuysell
holdbuysell's picture

""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!"

Wed, 03/20/2013 - 04:56 | 3351311 melanie
melanie's picture

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

Wed, 03/20/2013 - 05:01 | 3351313 MarcusLCrassus
MarcusLCrassus's picture

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. 

Wed, 03/20/2013 - 17:26 | 3354125 dadichris
dadichris's picture

is it Liquidity or Solvency they need because those are very different things...

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