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Tyler Durden's picture




 

As is painfully clear to even the most naive observer, the biggest threat for Europe from this point on, now that Cyprus is officially "unfixed" is what happens when... if the Cyprus banks reopen - will the deluge of bank withdrawals drain 10% of the savings as the country's central banker warned earlier today, 20%, 50% or all of it? It is certain that any and all foreign "oligarch" accounts will be promptly pulled never to be heard of again, and after being treated like third grade European citizens, we doubt the locals will care much for having their cash in a banking system that Europe has shown is equal to all the other "united" banking systems, which however also happen to be just that much more equal. And once foreign TV crews show lines of people scrambling to pull money in Cyprus to the local viewers in Greece, Italy and Spain, will those countries also get comparable ideas? That is precisely the Pandora's box that Europe has now opened, and which it is scrambling to close. How? With the dreaded "contingency plans", among which are such last ditch efforts as capital controls, including "imposing limits on daily withdrawals from bank accounts; capping the amount of money that can be electronically taken out of the country and making these transactions slower to clear; and introducing border checks to cap the amount of cash leaving in the country," most recently utilized in the banana-est of republics such as Argentina.

From WSJ:

The contingency measures, described by three European officials, may not need to be implemented if the deposit outflow looks containable. But the plan includes imposing limits on daily withdrawals from bank accounts; capping the amount of money that can be electronically taken out of the country and making these transactions slower to clear; and introducing border checks to cap the amount of cash leaving in the country.

 

One official also said the IMF had been tasked with developing a plan to merge the country's two biggest banks—Laiki Bank and Bank of Cyprus—putting their healthy assets into a smaller entity and the nonperforming assets into a "bad bank," which wouldn't do any new business.

 

A spokeswoman for the IMF had no immediate comment. European officials have repeated that the goal is to shrink the island's banking sector over time.

 

After the Saturday morning meeting where finance ministers presented the bank-deposit tax plan, Jörg Asmussen, the German member of the ECB's executive board, said the Cypriot central bank and treasury have "prepared a contingency action plan, they are monitoring deposit flows, even on an intra-daily basis and will take the necessary actions if appropriate."

 

The officials said neighboring countries had been instructed to be on the ready to fly euro bank notes into Cyprus should the need arise, but one official said this hadn't yet happened.

In a sign that even worse is to come, is the use of the most dreaded comparison in modernity: Cyprus is now Greece:

He said the ministry was "proactively approaching personnel to ask if they want their March and future months' salaries paid into U.K. bank accounts, rather than Cypriot accounts."

 

The officials said such planning shouldn't be a surprise.

 

"This is exactly what is to be expected and exactly what was in place for Greece last summer," one official said, referring to the critical Greek elections in June 2012, during which depositors were removing large sums of cash out of Greek banks, spooked by the prospect of a euro exit.

 

Spokesmen for the European Commission and the ECB declined to comment on the contingency plans. ECB officials have said it is a matter for the Cyprus government. A spokeswoman for the Central Bank of Cyprus didn't respond to calls for comment.

All that said, please don't worry: Cyprus is small and thus meaningless, the benign despots of the Europas say it is a "very special case", Europe is solvent, its banks are overflowing with cash and Spiderman towels, all people in Europe are equal but those who share bank vaults with Russian billionaires in places like Cyprus, or Switzerland, are less equal than others, and general there is nothing to be afraid of: because if bank runs haven't started by now, they certainly never will. Ever. Promise.

Remember - Europe is fixed: every European politician has already said so. Twice.

 

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Tue, 03/19/2013 - 19:43 | 3350244 Cult_of_Reason
Cult_of_Reason's picture

Cypriot Govt MP Mario Mavrides tells BBC Newsnight if a deal with the Troika can't be found or Cyprus can't raise 6bn, they'll leave the Euro.

https://twitter.com/BBCNewsnight/status/314141114380730368

Tue, 03/19/2013 - 19:46 | 3350271 smlbizman
smlbizman's picture

keisers site is down....it looks down , not troubled...anyone else?

Tue, 03/19/2013 - 19:48 | 3350279 smlbizman
smlbizman's picture

and can somebody tell me how to get the hedge if they take it down...will i need special skills beyond click click? will i need to be a computer geek?

Tue, 03/19/2013 - 19:55 | 3350302 seek
seek's picture

in theory it could be accessed directly at its ip address (http://178.209.48.14) but it currently redirects that to "zerohedge.com" so it would still break if someone did the usual DNS tricks like DHS does. I'd imagine if they were formally blocked that Sacrelidge would reconfigure the IP to work or come up with another domain name outside of US jurisdiction. (The servers were relocated outside the US years ago, so DNS is the only real vulnerability short of an internet kill switch.)

It'd be great if ZH had a presence of Tor.

 

Tue, 03/19/2013 - 20:01 | 3350328 francis_sawyer
francis_sawyer's picture

CAPITAL CONTROLZ BITCHEZ!

~~~

[aka: the JOOBUX endgame]...

Enjoy your 'politically correct' life [& all it earned you, or what it will be worth to you going forward]...

Tue, 03/19/2013 - 20:13 | 3350353 CClarity
CClarity's picture

EU general principles of capital movement within the EU Treaty Provisions - let's just say there are lots of loopholes (exceptions) and so many things that could be considered "prudential measures"  or "defense"  or public security or myriad other things. http://ec.europa.eu/internal_market/capital/framework/treaty/index_en.ht...

Tue, 03/19/2013 - 20:25 | 3350427 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

this francis sawyer dude would make it good in Nazi germany

Tue, 03/19/2013 - 20:38 | 3350482 Ima anal sphincter
Ima anal sphincter's picture

-1000...... Actually his views are quite correct. He doesn't play the "politically correct" game either.

We need more just like him.

Tue, 03/19/2013 - 22:12 | 3350781 francis_sawyer
francis_sawyer's picture

I'm not a jew hater...

~~~

I'm a fiat ponzi paper [FRANCHISE] hater...

All candidates [who DON'T overwhelmingly represent a 'tribe' at large]... may APPLY for status at will...

I've only received one application thus far... That was from the EVIL EPISCOPALIAN cult... [It's under consideration by the JUDICIARY COMMITTEE as we speak]...

 

Wed, 03/20/2013 - 01:50 | 3351171 Element
Element's picture

 

 

"I watched a snail crawl along the edge of a straight razor. ... That's my dream; ... that's my nightmare. ... Crawling, ... slithering, ... along the edge of a straight razor... and surviving."

Capital controls

Wed, 03/20/2013 - 02:33 | 3351204 Dooud
Dooud's picture

Apocalypse NOW,,,,man!

Wed, 03/20/2013 - 06:42 | 3351394 negative rates
negative rates's picture

That's been his calling card for some time, a country is either to small to matter, or to big to duplicate. He's got it all figured out.

Wed, 03/20/2013 - 04:51 | 3351299 Mentaliusanything
Mentaliusanything's picture

Capital controls? well if the Pope is a Catholic, a fishes ass is watertight, wild bears shit in forests and one legged ducks swim in circles, thenThat little island is going to get them. Talk about stating the bleeding obvious. Banks that levitate on levergage can do no more. Malakas

Tue, 03/19/2013 - 20:12 | 3350363 SMG
SMG's picture

You misassign the blame. HORUSBUX (Lucifer) would be more accurate.

Tue, 03/19/2013 - 20:33 | 3350463 NoDebt
NoDebt's picture

What a clusterfuck.  I suppose we all knew something would trigger the next wave.

At this point a quick exit from the Euro by Cypress might be the LEAST damaging thing they could do to themselves.  It'll be bad for a while but 3 years later Greece will be looking at them with envy.

Still, making nicey-nice with the Russians..... oofah!  No matter what they do they're gonna have a tough time with that.  Maybe offer the gas fields to Gazprom and hope that's enough to appease them.

Could be worse, I suppose.  Could be me.  (Will be sometime in the future, I know, but thankfully not today)

Tue, 03/19/2013 - 21:48 | 3350713 Eireann go Brach
Eireann go Brach's picture

Francis Sawyer, you deserve to have your head placed in a vice and pulled tight until your eyes pop out you ignorant bastard!

Tue, 03/19/2013 - 20:04 | 3350339 nonclaim
nonclaim's picture

Accessing articles via feed worked while the main page was "blank" today:

http://feeds.feedburner.com/zerohedge/feed

Wed, 03/20/2013 - 12:37 | 3352600 Georgiabelle
Georgiabelle's picture

Thanks for the link. Good to know.

Tue, 03/19/2013 - 21:09 | 3350583 smacker
smacker's picture

If ZH is mirrored in one or more other jurisdictions (currently it's hosted in Switz).

Mirroring is not uncommon with sites which the criminal elites dislike...

Tue, 03/19/2013 - 19:55 | 3350300 Cdad
Cdad's picture

It's a power outage.

Tue, 03/19/2013 - 21:05 | 3350569 JackT
JackT's picture

Shouldn't people already be lining up? Here in the states we line up at least 3 days prior to a retail discount

Tue, 03/19/2013 - 20:42 | 3350484 ChanceIs
ChanceIs's picture

I think the site is down becasue Max compared Jamie Dimon to a tapeworm once too often.  Or perhaps he made too convincing a case that Jamie is a tapeworm.

Probably it was because he had Josh Rosner on.  I have met Josh on several occasions.  Incredibly likeable, thoughtful, sincere human being.  His mere presence on the show gives Max a lot of credibility.  (Constrast that to what would happen to Max's credibility if Jamie actually accepted one of Max's invitations to be on the show.)  Rosner bashed the living s*&t out of JPM/Jamie.

As someone pointed out, the lastest Keiser report is available on YouTube.  I got it from my feed.  I am sure that if you did a search on "Keiser tapeworm" you would find the show.

Tue, 03/19/2013 - 22:25 | 3350828 ThaBigPerm
ThaBigPerm's picture

Dimon has an "off switch" of his own ...

http://abclocal.go.com/kabc/story?section=news/business&id=9032659&rss=rss-kabc-article-9032659

Someone accidentally installed the Cypriot patch on their production servers instead of the development servers... lol

Tue, 03/19/2013 - 19:46 | 3350272 McMolotov
McMolotov's picture

Paraphrasing The Breakfast Club: "If Cyprus leaves the Euro, they'll all leave the Euro! It'll be anarchy!!!"

Tue, 03/19/2013 - 20:13 | 3350376 Abraxas
Abraxas's picture

Save Feris! (in this case Cyprus)

Tue, 03/19/2013 - 19:47 | 3350275 max2205
max2205's picture

They all get euros with a little C Next to it. Not good out out country. Checkmate

Tue, 03/19/2013 - 19:50 | 3350278 Supernova Born
Supernova Born's picture

Inevitable.

Individual Registered Accounts will be taxed. Registration precedes confiscation.

Demographics are destiny and the demos spell FSA voting majority.

Tue, 03/19/2013 - 20:13 | 3350369 Gidas19
Gidas19's picture

On the positive note, Cyprian unemployment % should go down due to hiring of part time bank tellers for the busy season thats coming, right?

Tue, 03/19/2013 - 21:49 | 3350719 Joe moneybags
Joe moneybags's picture

Once again, the PTB demonstrate that power.  They can make or change about any rule that they wish, and leave the populace dazed, confused and compliant, like vicitims of the "Stockholm Syndrome".  That's the reality with which we must deal, not the fantasy of a day of reckoning, where we stackers become the new exulted Wise and Wealthy Men.

Wed, 03/20/2013 - 08:47 | 3351641 thewhitelion
thewhitelion's picture

But on a brighter note " its banks are overflowing with cash and Spiderman towels."

Tue, 03/19/2013 - 19:40 | 3350245 IamtheREALmario
IamtheREALmario's picture

We already have many capital controls in the US: 401Ks, IRAs, the 10,000 limit on cash movement, bank covenants, taxes, etc. Who is kidding whom?

Tue, 03/19/2013 - 19:49 | 3350282 Stoploss
Stoploss's picture

Any body remember the name of the european model who refused to be paid in dollars?

I think this was in 08 or 09.

Wondering how that's working out so far.  LOL!!

Tue, 03/19/2013 - 19:54 | 3350299 JohnG
JohnG's picture

Gisele Bündchen

Tue, 03/19/2013 - 20:00 | 3350317 Supernova Born
Supernova Born's picture

Asset forfeiture will come to those who merely try to preserve post-tax savings, but run afoul of new reporting/levy/taxation requirements.

Tue, 03/19/2013 - 20:18 | 3350398 Town Crier
Town Crier's picture

By keeping interest rates artificially low the US Gov steals the money of savers every day, and has been doing so for years. They are just more clever about it.

Thu, 03/21/2013 - 15:06 | 3350305 Supernova Born
Supernova Born's picture

Speaking of demographics...

The Free Shit Army thanks you for your work and your delayed gratification. It shall be their pleasure to gratify themselves at your expense.

Tue, 03/19/2013 - 20:13 | 3350370 Tijuana Donkey Show
Tijuana Donkey Show's picture

If it was on the border to Canada, then yes.....

Tue, 03/19/2013 - 19:58 | 3350303 Winston Churchill
Winston Churchill's picture

Damn right.As of Jan 1st there iss a new Treasury report for any

overseas transfer in any ammount from a bank.Money seems to take two

days instead of two hours to arrive.

Long smugglers.

Tue, 03/19/2013 - 20:25 | 3350428 nonclaim
nonclaim's picture

FX netting if you find a trade partner.

Tue, 03/19/2013 - 21:44 | 3350704 Oldballplayer
Oldballplayer's picture

You can move any amount of cash you want. It just gets reported. If your answer to the question is that you don't trust the banks and you want your cash....it's not illegal.

Wed, 03/20/2013 - 05:09 | 3351320 Mesquite
Mesquite's picture

And the folks were told the TSA were looking for ....

Tue, 03/19/2013 - 19:41 | 3350246 lordbyroniv
lordbyroniv's picture

4th Turning..........BITCHEZ !!!!!!!!!!!!!!!!!!!111111111

Tue, 03/19/2013 - 19:43 | 3350250 slightlyskeptical
slightlyskeptical's picture

I'm not so sure. If the banks get recapped it may be the safest place in the world for your money. The politicians have made it clear that the rule of law still exists in Cyprus.Would you trust the US congress to vote such a measure down?

Just playing devil's advocate here. I would guess about 30%.

Tue, 03/19/2013 - 19:45 | 3350260 Tijuana Donkey Show
Tijuana Donkey Show's picture

CON-gress would never get to vote on it. Cue the Fed mandate................

Tue, 03/19/2013 - 21:14 | 3350595 CaptainObvious
CaptainObvious's picture

Doesn't matter what Congress does or doesn't do since Obomber has made it abundantly clear that he'll just do an end run and write one of those executive orders.  Sort of like executive order 6102.

Tue, 03/19/2013 - 19:43 | 3350252 OptionNinjaNYC
OptionNinjaNYC's picture

Capital Controls: Coming soon to a Chase bank near you.

Need more Synthetic CDOs.

 

http://wallstreetfool.com/

Tue, 03/19/2013 - 19:44 | 3350253 Tijuana Donkey Show
Tijuana Donkey Show's picture

CHASEing the dream BABY! http://www.infowars.com/chase-customers-see-bank-balance-reduced-to-zero...

Just a fluke while they cook the numbers?

Tue, 03/19/2013 - 19:45 | 3350267 El Viejo
El Viejo's picture

Pardon my ignorance, but what's the diff between Iceland and Cyprus?

Tue, 03/19/2013 - 19:47 | 3350276 Coke and Hookers
Coke and Hookers's picture

The euro. There is no danger of any sort of currency crisis or capital controls if you have the euro. That only happens in countries with their own currencies, like Iceland.

/sarc

Tue, 03/19/2013 - 19:53 | 3350291 El Viejo
El Viejo's picture

And the US,Japan etc  /sarc

Tue, 03/19/2013 - 20:03 | 3350335 Coke and Hookers
Coke and Hookers's picture

Off topic - but I have a story of cosmic symmetry for you. The biggest owner of Landsbanki (the notorious Icesave bank) was according to rumor a big time money launderer for the Russian mob. According to these rumors he used the bank to launder ill gotten Russian cash. After the mean old Icelandic government took away his bank he left the country and apparently set up shop in ... wait for it ... Cyprus!

Tue, 03/19/2013 - 20:20 | 3350396 dick cheneys ghost
dick cheneys ghost's picture

Nothing off topic about that......great story. The cold-war never ended...

Tue, 03/19/2013 - 20:40 | 3350483 NoDebt
NoDebt's picture

Agreed.  Great info.  But would this be considered "strike two" for him, or are they so glad they could get while the getting was good that setting up shop in new places from time to time is just "the cost of doing business" for a cat like that?

I suppose it's the latter, now that I think about it.  Russian mod probably cuts you off (literally) after strike one.

Tue, 03/19/2013 - 21:02 | 3350554 Coke and Hookers
Coke and Hookers's picture

He just lost the 'venue' the first time - probably no money. Might be different this time though.

Tue, 03/19/2013 - 19:51 | 3350287 Tijuana Donkey Show
Tijuana Donkey Show's picture

Blondes and long nights!

Tue, 03/19/2013 - 20:29 | 3350443 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

the difference between a pizza and a blonde is that only 8 get to eat the pizza

Tue, 03/19/2013 - 21:18 | 3350616 CaptainObvious
CaptainObvious's picture

Iceland was first to default, thumbed their collective noses at the bankster class, and told them to go piss up a rope.  Iceland is flourishing today.  Cyprus chose to kowtow to the Germans and pander for IMF help.  Cyprus is drowning today.

Wed, 03/20/2013 - 05:16 | 3351329 Mesquite
Mesquite's picture

But.. but uh..EU is fixed...

Yup, like a tomcat back from the vets..

Tue, 03/19/2013 - 19:52 | 3350290 TJ00
TJ00's picture

He who panics first, panics best.

Tue, 03/19/2013 - 20:19 | 3350399 akak
akak's picture

Ironically, he who panics last, panics best as well.

Tue, 03/19/2013 - 19:54 | 3350297 Cdad
Cdad's picture

As is painfully clear to even the most naive observer

I should hope so...by now...with everything that has happened, from Iceland to Ireland to Greece [Spitaly] and to this here cosmic bunny hole...of the ECB attempting to rob despositors in Cyprus...to fund yet another freakin' bank bailout.  Good grief!  Are you serious?  

Thank you, Ben Bernanke, for this wasteland that we all now live in.  Bail this out, bail that out, crush savers, print money...steal their freakin' deposits if you have to...and on and on and on.  Why?  Why are we doing this, Mr. Bernanke, Mr. Draghi?  Why?  Would either of you like to, I don't know, stop and reflect for a moment?

The swath of failure behind the both of yas is a thousand miles wide.  Trillions in debt...unemployed people everywhere, food stamps, everything squandered on this utter and complete rejection of the very important notion that, within capitalism, some folks must fail!  Yeah...at least until Ben Bernanke and Mario Draghi arrived, that is.

Okay...so now that we have crossed the threshold of stealing deposits, what is next?  Feel like damn'd Drinkingwithbob all of a sudden.......

 

Tue, 03/19/2013 - 20:25 | 3350426 JohnnyBriefcase
JohnnyBriefcase's picture

within capitalism, some folks must fail!

 

Yes but it must be the right people that fail.

 

It's perfectly alright if little people fail (cost of doing business) but certainly not alright if its the big people (cost of doing God's work). 

 

Motherfuckers!!!!!!!!  Sorry I made myself really pissed off as I typed the above.

Tue, 03/19/2013 - 23:40 | 3351008 Milestones
Milestones's picture

Can't reply if you do not uses qotation marks in your first sentence.            Milestones

Tue, 03/19/2013 - 23:48 | 3351028 Milestones
Milestones's picture

Cdad-No one can comment because you did not use "quote "" around the first sentence--I think it's the different font used.       Milestones

Tue, 03/19/2013 - 19:54 | 3350298 ozzz169
ozzz169's picture

who didnt see this coming?  capital controls are always the last sign of desperation the genie is out and there is no stuffing her back in no matter how hard they try, the bank runs are unavoidable. 

Tue, 03/19/2013 - 20:09 | 3350354 toys for tits
toys for tits's picture

 

I would have thought capital controls would precede depositor theft.

Tue, 03/19/2013 - 20:21 | 3350406 akak
akak's picture

Akak's Maxim: When it comes to banksters, never attribute to stupidity that which can be adequately explained by sociopathy.

Tue, 03/19/2013 - 20:48 | 3350512 NoDebt
NoDebt's picture

Ironic, isn't it, that this sort of stuff is one of the things the whole Euro project was specifically supposed to prevent?  Free flow of capital and labor and all that.  What hubris.  What arrogance. 

Tue, 03/19/2013 - 19:58 | 3350314 IndicaTive
IndicaTive's picture

I'm just giddy thinking about the bullshit rumor of a solution to be refuted and then revised and restated. And then the "irrational" bank run. Markets are a spectator sport.

Tue, 03/19/2013 - 19:58 | 3350316 SgtSchultz
SgtSchultz's picture

From "Margin Call"

John Tuld: So you think we might have put a few people out of business today. That its all for naught. You've been doing that everyday for almost forty years Sam. And if this is all for naught then so is everything out there. Its just money; its made up. Pieces of paper with pictures on it so we don't have to kill each other just to get something to eat. It's not wrong. And it's certainly no different today than its ever been. 1637, 1797, 1819, 37, 57, 84, 1901, 07, 29, 1937, 1974, 1987-Jesus, didn't that fuck up me up good-92, 97, 2000 and whatever we want to call this. It's all just the same thing over and over; we can't help ourselves. And you and I can't control it, or stop it, or even slow it. Or even ever-so-slightly alter it. We just react. And we make a lot money if we get it right. And we get left by the side of the side of the road if we get it wrong. And there have always been and there always will be the same percentage of winners and losers. Happy foxes and sad sacks. Fat cats and starving dogs in this world. Yeah, there may be more of us today than there's ever been. But the percentages-they stay exactly the same.

Tue, 03/19/2013 - 20:03 | 3350334 El Viejo
El Viejo's picture

Yeah, 87 got me too. I was using DEC computers and liked them so I bought some DEC stock. Two weeks later the crash of 87. DEC never came back. I did get out before it went to zero.

Tue, 03/19/2013 - 21:24 | 3350640 Tango in the Blight
Tango in the Blight's picture

I lost money in 87 as well, was only 20 what did I know?

Wed, 03/20/2013 - 05:25 | 3351334 Mesquite
Mesquite's picture

Birth of the PPT, as I recall...

Tue, 03/19/2013 - 21:35 | 3350662 BigJim
BigJim's picture

I've used DEC gear quite a bit. It was a pain in the ass; really time consuming to take apart whenever anything went wrong. Built like a tank and similarly hard to get into.

People swore by VMS, I swore at it... DEC with their proprietary hard drives and interfaces and OS drivers that would only support 'approved' hardware. Good riddance.

Sorry you lost out on their stock though :-p

Tue, 03/19/2013 - 20:00 | 3350322 BlueCheeseBandit
BlueCheeseBandit's picture

This ain't yo moma's bank holiday.

Tue, 03/19/2013 - 20:00 | 3350324 digalert
digalert's picture

EU memo:

Pandora's box cannot be closed...idiots.

Tue, 03/19/2013 - 20:04 | 3350330 tango
tango's picture

We forget the implaccable force of time.  Europe has been in a Euro upheaval with so many ups and downs and deadlines and threats that folks are getting weary of it all.  The rage has given way to a dreary acceptance and Oz-like belief in the calming words of their leaders   What the bankrupt nations (and the US) don't say is that without the free central bank money purchasing everyone's sovereign debt they could not survive.   In other words, going alone means either a dramatic drop in the scope and size of government (not in a million years) or a greatly reduced living standard - something that is underway as we speak.  

I see no dramatic movements, simply a slow denouement accompanied by the brayings of those who truly know not what they do.  Or I should say, their central planning mindset is so ingrained they cannot imagine an alternative to more debt. 

Tue, 03/19/2013 - 21:23 | 3350639 CaptainObvious
CaptainObvious's picture

Oh, they know what they're doing.  They're just making it take a really long time so they and their buddies can feather their nests and relocate them before they burn down the whole fucking henhouse.

Wed, 03/20/2013 - 05:29 | 3351335 Mesquite
Mesquite's picture

Appears to be going in a lot of places...

   That 'feathering of nests' business..

Tue, 03/19/2013 - 20:04 | 3350332 WallowaMountainMan
WallowaMountainMan's picture

what has occurred is a paradigm shift:

prior to friday:

if you had money, you had the power.

today:

if you have no money, you have the power.

that is a non trivial shift.

black swan.

Tue, 03/19/2013 - 20:08 | 3350340 Tango in the Blight
Tango in the Blight's picture

And once foreign TV crews show lines of people scrambling to pull money in Cyprus to the local viewers in Greece, Italy and Spain, will those countries also get comparable ideas?

Doesn't happen. They only show "experts" who downplay everything. For example: the day before yesterday they had a "highly respected" (ie elitist) economist named Sweder van Wijnbergen on TV here in the Netherlands. He said it was completely justified that Cypriot savers had gotten their accounts docked because they were greedy for yield (in Cyprus one could apparently still get interest above inflation as opposed to here). He also stated affirmatively that Italy has no public deficit and all is well in Spain. It's people like him who the average Dutch LIV listens to. I don't doubt the same is true in other European countries.

Wed, 03/20/2013 - 00:03 | 3351062 Milestones
Milestones's picture

Good post but I could not give you a greenie. Fisst sentence, in Italics needs "qotations" or the site will not accept your comments.   Milestones

Tue, 03/19/2013 - 20:05 | 3350348 krispkritter
krispkritter's picture

Run, Cyprus, Run!

 

If it were me, I'd be buying pre-paid CC's, running up regular CC's with cash withdrawals or purchases, buying PM's via direct transfer, taking cash outs with debit purchases of foods, wines, liquors, etc. I'd have my account drained rather quickly and a stockpile of goods exchangeable for cash or in place of cash like PM's.  At any point I can exchange a good for cash or circumvent the system to add to my cash, goods, and PM stores I would. Not sure how it works over there but I'm sure if they are creative, a good many people will manage to get their money out. 

Tue, 03/19/2013 - 20:20 | 3350403 Poor Grogman
Poor Grogman's picture

Thats actually a clever strategy!

Just run up credit cards and then ask the bank to clear them from your account funds, ( which are now blocked) .

Your problem just became the banks problem, brilliant...

Tue, 03/19/2013 - 20:32 | 3350457 krispkritter
krispkritter's picture

Not sure they could control the actual amounts used for purchasing as it would quickly shut down the entire economy.  No one has the exact same bills due every month or same size family grocery bill, etc. so they could control outflows via cash withdrawals, transfers, etc. but I don't think they'd be able to get as far as saying every person/account can only spend $1K a month, period.  By the time they see what I suggested happening I think they'd have lost complete control.  And if I'm buying more credit on their credit and they don't have control of it, then I can do whatever I want with it. If I'm buying goods, short of making it illegal to sell, they have lost oversight of it.  In the US this is actually easy and if you've ever seen Goodfellas, then you know how the model works...

Tue, 03/19/2013 - 21:30 | 3350659 CaptainObvious
CaptainObvious's picture

Funny you mention Goodfellas.  While watching Goodfellas, I was rooting for the mafia.  While watching this clusterfuck unfurl, I'm also rooting for the mafia. 

Tue, 03/19/2013 - 20:08 | 3350351 disabledvet
disabledvet's picture

Again "count me skeptical." we never got capital controls in the USA in the depression because of the size and extent of "a Continental sized financial community." in Europe it's WAY more complicated. There is only one true unitary State on the Continent...France...and obviously you don't have to remind Germany of what an "uber State" (and nothing more) get's you. Obviously I fail to see "the set up" that everyone here...and Cyprus (which negotiated this thing" yes, yes!!!) is decrying. In other words "Southern Europe...take a look in the mirror." 40% unemployment just show you never had an economic plan to begin with "once your euro-ized." STILL asking for the bailouts "from the Troika"...STILL...just means funneling more money the the banks and away from your...are they just now "the constituent States of Europe" now? Any case "show me how playing by the rules" is the answer and then I'll...start to listen. Right now the whole thing seems like background to "the Great War" everyone is pining for.

Tue, 03/19/2013 - 20:08 | 3350352 Goldilocks
Goldilocks's picture

"We used to do things for posterity now we do things for ourselves and leave the bill to posterity." — ANONYMOUS

Tue, 03/19/2013 - 20:28 | 3350438 akak
akak's picture

"We used to do posterior things for Chinese citizenism now we do blobbing-up things in the name of US 'american' citizenism and leave the bill to posterity." — ANANONYMOUS

Tue, 03/19/2013 - 20:10 | 3350355 bluskyes
bluskyes's picture

A "special case" that requires "special treatment" Like the special treatment afforded to those, whose fate would have been sealed, had Oskar Schindler not employed them?
Europe is screwed.

Tue, 03/19/2013 - 20:12 | 3350358 just-a-girl
just-a-girl's picture

 

 

 

There once was a group called the European Troika

Who went after some Russian money hidden since Perestroika

They called it a levy or a tax

But, they simply took the money and didn’t ask

Now I wonder if here they might take your IRA

Tue, 03/19/2013 - 20:17 | 3350392 Abraxas
Abraxas's picture

You need a melody to go with the words and it could be a hit. It should be titled: "Troika-Perestroika"

Tue, 03/19/2013 - 20:20 | 3350400 Tango in the Blight
Tango in the Blight's picture

They should send the IRA after your IRA's that might bail out one of the PIIGS.

Tue, 03/19/2013 - 20:23 | 3350418 Poor Grogman
Poor Grogman's picture

TSA IRA take your money and run away...

Tue, 03/19/2013 - 20:22 | 3350407 machineh
machineh's picture

There once was a schwein named Schaeuble

Who caused the Russians some trouble

They yanked down his pants

Stuffed his ass with fire ants

And said, next time you're gettin' it double

Tue, 03/19/2013 - 21:28 | 3350650 CaptainObvious
CaptainObvious's picture

Damn, to see video of that, I'd go put back all the money I yanked from the bank yesterday and let 'em confiscate it.  Well done, sir!

Tue, 03/19/2013 - 22:34 | 3350846 tsx500
tsx500's picture

don't quit your day job !

Tue, 03/19/2013 - 20:11 | 3350361 Sudden Debt
Sudden Debt's picture

there's a flaw in the plan.....

And once foreign TV crews show lines of people .....

won't happen. period.

Tue, 03/19/2013 - 21:33 | 3350667 CaptainObvious
CaptainObvious's picture

True, very true.  The Cypriot crisis barely got a mention on MSM yesterday.  I think the MSM is like a child playing hide and seek.  They think if they just stand in place and put their hands over their eyes, we won't see them.

Tue, 03/19/2013 - 20:17 | 3350364 Unprepared
Unprepared's picture

The Journey of a 1001 Default Nights Begins With a Single Bank Holiday.

Tue, 03/19/2013 - 20:13 | 3350368 machineh
machineh's picture

 'Cyprus is small and thus meaningless'

This afternoon, Bloomberg Radio was running a clip of a French finance official (sorry I didn't catch the name), who said (speaking in accented English):

'Cyprus is unique: an economy that is TINY in the EU, a financial sector that is 'UUGE,' and non-resident deposits that are ENORMOUS. Nowhere else in the EU do you find this.'

In other words: it's not official until it's officially denied.

Plan accordingly.

Wed, 03/20/2013 - 05:43 | 3351343 Mesquite
Mesquite's picture

In other words: the plum was just too large to resist...,

Tue, 03/19/2013 - 20:14 | 3350384 RideTheWalrus
RideTheWalrus's picture

Australian government is going to take EVERY bank account that hasn't had a widthdrawl or deposit in 3 years. 

If you have a savings account that's been collecting interest and it hasn't been touched in 3 years, after May 31st the Gov will take every cent in there.

 

Get your cash while you can!

 

Increased government powers to seize money from inactive banks accounts will soon come into effect, after legislation was rushed through parliament last year.

From May 31, the federal government will have the power to transfer to its own coffers, all money from accounts that have not been used for the past three years.

Any bank account that holds more than $1 and has not had any deposits or withdrawals during this timeframe will be transferred to the Australian Securities and Investment Commission (ASIC).

Based on current data, the government will net around $109 million this year alone. Every year from now on, accounts that are deemed to be inactive will be released to ASIC.

Data from ASIC has shown that there are accounts with more than $300,000 in them waiting to be claimed 

 

http://www.bigpondmoney.com.au/inactive-bank-accounts-raided?cid=ZBP_FOT...

Tue, 03/19/2013 - 20:51 | 3350520 Rustysilver
Rustysilver's picture

In US (CT), if you have a HSA (health savings account) and no activity for a year, the state takes it. They sent you a letter first.

The $hit that these scumbag come up is surreal.

Tue, 03/19/2013 - 20:17 | 3350394 chump666
chump666's picture

"imposing limits on daily withdrawals from bank accounts; capping the amount of money that can be electronically taken out of the country and making these transactions slower to clear; and introducing border checks to cap the amount of cash leaving in the country,"

This was a world wide phenomenon after 2008 globally (note: bank website hitches and the like).  The FED just dropped the widening credit rates, pumped cash to wall street for their leverage party while London  manipulate LIBOR and all bet like the greed machine it is.

The future looks dark.

 

Tue, 03/19/2013 - 20:22 | 3350411 Piranhanoia
Piranhanoia's picture

"The contingency measures, described by three European officials,"    They don't get it yet.  It isn't going to matter what 3 blind mice have to think or say any longer.   They have to throw money at Cyprus, and Cyprus doesn't have to do anything but take it.  The people will take their Euro's out of the banks,  Europe has to fill the bank back up again.  The people will have their Euro's which can then be exchanged for a real currency, deposited in banks of their choice, or not.  They will be made whole by the a holes, and can then default, leaving everything in tact, and with their money, without debt.  The ECB has to maintain the currency so others don't do likewise until they can't any more.   Cyprus wins,  makes a deal with other more compatible foreigners, and enjoys their mediterranean iceland.   The europarliament becomes a bloodbath and politicians begin hurling more than insults at each other.   The only question is going to be which other countries rush for the exits to take advantage of the free money as long as the ECB can supply it?   Can you say, commodities?

Tue, 03/19/2013 - 20:27 | 3350420 Scalaris
Scalaris's picture

o/t but is anyone fluent in spanish, and furthermore is this anywhere even near to saying that Spain is anouncing a "modest" tax on deposits, or am I tripping bear balls? - ¡gracias

 

 

Edit: Nevermind, ZH has literally just posted on the subject.

Tue, 03/19/2013 - 20:32 | 3350430 e m m
e m m's picture

(dupe)

Tue, 03/19/2013 - 20:41 | 3350490 shovelhead
shovelhead's picture

He said the ministry was "proactively approaching personnel to ask if they want their March and future months' salaries paid into U.K. bank accounts, rather than Cypriot accounts."

 The officials said such planning shouldn't be a surprise.

 

This would be the same Finance Ministry that would have been happy to steal Nicky the window washers money to keep bank bond and shareholders whole?

Class Act.

"We're from the Govt. and we're here to help...

ourselves."

Tue, 03/19/2013 - 20:54 | 3350525 thisandthat
thisandthat's picture

 

Remember - Europe is fixed: every European politician has already said so. Twice.

Third time's the charm ("Europe is fuxed.").

Tue, 03/19/2013 - 21:01 | 3350550 gould's fisker
gould's fisker's picture

Europe is fixed like a pet schnauzer.

Tue, 03/19/2013 - 21:25 | 3350643 Tinky
Tinky's picture

Comment from Mish's site:

Fact, taxi driver in Cyprus today: "Every single person I've picked up at Larnaca airport has been a Russian flying into get their money out of banks"


Tue, 03/19/2013 - 22:24 | 3350825 Edward Fiatski
Edward Fiatski's picture

Larnaca, eh? Eight out of ten probably have a villa in, or near Aiya Napa & Protaras.

Wait in line, wait your turn!

Tue, 03/19/2013 - 22:27 | 3350834 Calmyourself
Calmyourself's picture

Mish, the guy who wanted evil guns banned as no one "needed" them, I thought he was run off the web?  No, you say, still on, hmm just off my list of ever visits..  GTH mish, I got your need right here..

Tue, 03/19/2013 - 21:59 | 3350759 Edward Fiatski
Edward Fiatski's picture

At this point, digital capital flight would be considered a Godsend, reducing bank's liabilities, reducing foreign deposits - balancing the system. <-- This would NOT constitute a bank run.

Now, if the local people start hammering ATMs in fear, then welp.

Tue, 03/19/2013 - 22:12 | 3350787 Tunga
Tunga's picture

All your deposits are belong to us! - The Cypriotic Oath

Tue, 03/19/2013 - 23:54 | 3351038 steve from virginia
steve from virginia's picture

 

 

Capital controls are incompatible with the euro and imposing them will be the end of it.

 

The reason is simple the foreign exchange unholy trinity (or impossible trinity if you prefer):

 

http://www.economic-undertow.com/wp-content/uploads/2013/03/Unholy-Trini...

 

The God-like Unholy Trinity determines the course of foreign exchange for all countries including those in Europe. A country can have an independent monetary policy, it can maintain a currency peg with another country or countries and it can enjoy the free flow of capital across its borders. It can effect two of these, or two can be denied, but never all three at once.

 

Meanwhile, the worth of money is determined — not by central banks — but by its voluntary exchange for a valuable physical good on demand … at gasoline stations around the world millions of times a day. Even with policy rates set to zero and the all-out lending to governments by central banks there is no independent monetary policy … anywhere. The worth of money is determined by its exchange for crude and crude products and nothing else. The only policies that central banks can effect are those that make matters worse.

 

If you think the individual European states have monetary policies independent of the ECB or each other, you aren't paying attention.

 

The euro is not a currency in the sense that it is the product of a nation named ‘Europe’, rather it is the collection of currencies of individual European nations that all happen to be called the euro. These currencies are all pegged to each other, a source of Europe’s misery as there is no way for the individual euros to be repriced independently of the others. Europe has the pegged currencies and no independent monetary policy: all that remains is the free flow of capital -- or not -- across European borders …


Keep in mind, if states impose capital controls — to restrain the free flow of capital — there is no more peg which means no more euro!

 

How this takes effect is hard to say but it is likely to be disruptive.

Wed, 03/20/2013 - 01:04 | 3351129 Sandmann
Sandmann's picture

How are capital controls incompatible with the Euro ? They had them in Britain until 1979 and Sterling survived to implode after they were removed and banks went beserk

Wed, 03/20/2013 - 08:53 | 3351669 andrewp111
andrewp111's picture

Most EU states already have some capital controls that at least trap the small deposits. Opening an account in Germany now requires proof of residency, and cash can be confiscated at borders. There are already limits on daily and monthly cash withdrawals.  The Euro chiefs don't care if you transfer your bank deposits to another bank in the same State, but they actively discourage transfers that run up Target2 balances.

Wed, 03/20/2013 - 00:43 | 3351105 ebworthen
ebworthen's picture

Get your money out of any bank NOW!!!

Wed, 03/20/2013 - 01:02 | 3351125 Sandmann
Sandmann's picture

The largest Shareholder in Bnk of Cyprus is Russian

Dmitriy Rybolovlevwho holds his stake in the largest Cypriot bank through Odella Resources registered in BVI so that will be fun

Wed, 03/20/2013 - 04:56 | 3351307 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

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