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Iceland, Cyprus... And These Two Countries?

Tyler Durden's picture


Overnight, Reuters published an article highlighting something we noted first over three years ago: the unreasonably large size of a local financial sector as represented by its total assets compared to the host nation's GDP.

Specifically, Reuters alleges that "Cyprus' troubles stem from its exposure to Greece and the huge losses its two largest banks, Bank of Cyprus and Marfin Popular, had to stomach when euro zone leaders agreed in late 2011 to write down the value of private-sector holdings of Greek government bonds. In total, Cyprus requires 17 billion euros, nearly equivalent to its economy's annual output, to rescue its banks and deal with the government's own bills. Relatively small in the context of the Greek and Irish EU-IMF bailouts, at 240 billion euros and 67.5 billion euros apiece, for an island of just 1 million people it is a huge burden and speaks volumes about how large and unwieldy its banking sector had become."

More importantly, Reuters points out the similarities between Cyprus and Iceland in one key metric: total financial assets to the underlying GDP: "The [Cyprus] banking sector is now roughly eight times the size of the economy compared to 10 times for Iceland and over four times for Ireland before their crises. Banks in both countries used cheap funding to gorge on speculative investments." The issue for Cyprus of course was the composition of the liabilities matching these assets, which were mostly in deposit form, which was the alleged reason why the Eurogroup decided to proceed with deposit haircuts in order to shrink the overall financial balance sheet: arguably there were no other liabilities it could haircut. And yes, Cyprus is very comparable to Iceland in that regard. That much is known.

What may not be known is that it is specifically the fact that the underlying economy was tiny by comparison, i.e., small, relatively inert, non-aggressive government, in both Iceland and Cyprus that made them a depositor's safe haven... until of course confiscation day.

What is certainly not known, at least for now, is that slowly but surely financial markets and more importantly depositors, will start looking at all countries that have a very high ratio of financial assets, and thus deposits, to host GDP, as an indicator of where the "Cyprus Virus" may strike next.

Which is why we present readers with a pop quiz: the chart below show the ratio of total financial assets to host nation GDP. The tragic cases of Cyprus and Iceland are well-known, as per Reuters, and highlighted on the chart. We urge readers to guess what the supposedly very stable countries X and Y are on the chart, whose total financial system assets to GDP are approaching those of Cyprus, especially since depositors in their banking systems may be due for a very unpleasant surprise next if indeed Iceland and now Cyprus are the case studies.

Hint: Russian billionaire oligarchs are quite familiar with both X and Y.

We will provide the answer shortly after Bernanke's press conference today in which he will once again reaffirm he will monetize US debt as long as the US runs a $1+ trillion budget deficit, i.e., forever.


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Wed, 03/20/2013 - 10:21 | 3352046 Dan The Man
Dan The Man's picture

They should be talking

Wed, 03/20/2013 - 10:22 | 3352054 aint no fortuna...
aint no fortunate son's picture

Larry Motherfucking Fink is buying all 4 of them

Wed, 03/20/2013 - 10:30 | 3352082 BurningFuld
BurningFuld's picture

Oh I get it now...the more money you have in the Bank the more likely you are to go Bankrupt. Ah...simple mathematics.

Wed, 03/20/2013 - 10:33 | 3352091 Fukushima Sam
Fukushima Sam's picture

Man's doomed struggle against entropy would be laughable if I wasn't caught up in the middle of it.

Wed, 03/20/2013 - 10:38 | 3352110 Stud Duck
Stud Duck's picture

Ahhhhhhhhhhhhhhhh, a Korgypsian! Off with his head!

Wed, 03/20/2013 - 11:24 | 3352273 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

well, one must be the US, since Tyler is withholding releasing the answer to after Bernanke's presentation presumably in order to knock Bernanke's hypocrisy...  as to the other, I'll guess it is the the US' little buddy, Canada....

Wed, 03/20/2013 - 11:29 | 3352287 SafelyGraze
SafelyGraze's picture

to avoid haircuts, we must inflate the value of the assets.

call it "mark-to-liabilities"


Wed, 03/20/2013 - 16:21 | 3353841 Catflappo
Catflappo's picture

Essentially we need to grow more hair, so when the haircut is applied it comes out to 'the same' as before the hair started growing

Paul Krugman having a beard is therefore somewhat appropriate?

Wed, 03/20/2013 - 16:34 | 3353895 akak
akak's picture

That is not a beard on Krugman, it is actually just all the pubic hairs that have accumulated on his face after his repeated teabaggings of Bernanke.

Wed, 03/20/2013 - 11:30 | 3352292 whotookmyalias
whotookmyalias's picture

Cyprus banks, in fact any bank, has no business holding international debt and derivatives on their balance sheets. None.  BWTFDIK.

Wed, 03/20/2013 - 11:33 | 3352307 toys for tits
toys for tits's picture

It looks like Cyprus is fixing that.

Wed, 03/20/2013 - 11:32 | 3352305 Oquities
Oquities's picture

England and USA

Wed, 03/20/2013 - 12:18 | 3352482 DoChenRollingBearing
DoChenRollingBearing's picture

UK and Switzerland would be my guess.

Wed, 03/20/2013 - 12:26 | 3352528 Doomer
Doomer's picture

Ditto that (UK and US).

Cyprus, Ireland, Iceland, Greece (kind of), and the UK ... can anyone guess what they have in common?

Hint: A high sand to land ratio.

Wed, 03/20/2013 - 12:35 | 3352577 Catch-22
Catch-22's picture



...that was easy...

Wed, 03/20/2013 - 13:19 | 3352837 Catch-22
Catch-22's picture

Whoever junked me… when the banks reopens on Tuesday; pull out $100 and by yourself a sense of humor…


Wed, 03/20/2013 - 13:38 | 3352908 Fish Gone Bad
Fish Gone Bad's picture

You are a scream!  As you may or may not know, 30% of the population does not have a sense of humor.  These people find their way into bureaucratic jobs and spend most of their free time shopping for laxatives and alcohol.

Wed, 03/20/2013 - 14:36 | 3353269 Catch-22
Catch-22's picture

Since biz news has become almost irrelevant, I find myself wandering the streets of ZH for puddles of humor… some of the guys (gals) here are great! I guess the prodigious almighty Tyler leads the bunch with his own brand of dark and sarcastically sanguine style…

…the irony that “doomers” are the funniest people…


Wed, 03/20/2013 - 14:20 | 3353169 Rogue Trooper
Rogue Trooper's picture

The Krug was on the board again.. he got a real spanking yesterday.  He's pissed we all just don't get it and kneel to his superior 'intellect'.... 

Wed, 03/20/2013 - 11:41 | 3352334 French Frog
French Frog's picture

"Hint: Russian billionaire oligarchs are quite familiar with both X and Y"

With that in mind, I'll say the UK is one of them and the second one is from these 3: France, Italy or Spain

Wed, 03/20/2013 - 12:34 | 3352517 thisandthat
thisandthat's picture

I'll go with UK and SPain.

Oh, wait it says very stable - hmm...

Wed, 03/20/2013 - 13:01 | 3352742 Belarusian Bull
Belarusian Bull's picture

It's Switzerland and UK. 

Wed, 03/20/2013 - 13:38 | 3352842 Pseudo Anonym
Pseudo Anonym's picture

nah.  cayman, bahamas, bermuda in that order; bermuda is a bonus for next time

Fri, 03/22/2013 - 09:28 | 3361595 phalfa5
phalfa5's picture

Turdizstan and Deadpan

Wed, 03/20/2013 - 16:28 | 3353806 MisterMousePotato
MisterMousePotato's picture

@FukiSam ... Hm. 55 ups and no downs. I didn't down you because I understand the point you are trying to make, but I disagree. Your attitude is unnecessarily nihilistic.

There is a rose bush growing on a wall of a monastary in France that is thought to be 1000 years old. The rose is still there as is the monastary.

Sure, it may be a nuisance, but the fact is that one can remove all the weeds (every. single. one.) from one's row of carrots, if one is determined to do so. Yeah, you may have to do it all over again in another month or two, and certainly again next year, but ...

it. can. be. done.

Entropy is simply a natural force that can, in most necessary and reasonable circumstances, be overcome.

It is said that water is an architect's worse enemy.

And yet, here I sit. Dry and warm under a roof that is over one hundred and ten years old. (And by the looks of it, it might last as long as that rose on the monastary in France.)

Wed, 03/20/2013 - 12:42 | 3352631 matrix2012
matrix2012's picture

All the poor savers should have been investing in stawks instead, in particular the Wall Street related ones, they are proven to be much safer and give much higher returns... look at how the DJIA index just has upward direction!!

The interest seekers are damned to be doomed.



Wed, 03/20/2013 - 10:55 | 3352175 OptionNinjaNYC
OptionNinjaNYC's picture

You know what I've noticed? Nobody panics when things go "According To Plan." Even if the plan is horrifying! If, tomorrow, I tell the press that, like, a gang banger will get shot, or a truckload of soldiers will be blown up, nobody panics, because it's all "part of the plan". But when I say that one little old mayor will die, well then everyone loses their minds! Introduce a little anarchy. Upset the established order, and everything becomes chaos. I'm an agent of chaos. Oh, and you know the thing about chaos? It's fair!

--- The Joker

Wed, 03/20/2013 - 11:31 | 3352293 Big Slick
Big Slick's picture

Now we're talking.

Wed, 03/20/2013 - 12:11 | 3352462 IamtheREALmario
IamtheREALmario's picture

Kind of begs the question as to why the Russians don't invest in their own country and instead trust the money to untrustworthy banks that will just piss away the money on the next thing that Thomas Stolper recommends.

Wed, 03/20/2013 - 14:06 | 3353111 Pure Evil
Pure Evil's picture

The Russians are run by the mafia (KGB) and they have no more interest in their country's welfare than the nahbobs running the US.

Wed, 03/20/2013 - 11:29 | 3352289 JOYFUL
JOYFUL's picture

As long as we're doing quizzes n all(whilst waiting for the next shoe to drop o'er East!)....

there's a couple of 'regular contributors\street solicitors' here on the Hedge today whose attempts to capitalize on the Cyrus imbrogolio are pretty pathetically transparent...and sure indication of just how much their reach exceeds their grasp of the relevant topics of interest to the readership.

Their histrionic choice of headline(s) tells it all...and displays a very suspect 'best before' date for both individuals.

Clerk to aisle 9!  Bring the mop n pail!


Wed, 03/20/2013 - 11:45 | 3352355 OptionNinjaNYC
OptionNinjaNYC's picture

Your condescending opinions are greatly appreciated. I'm sure you're smarter than me and just about everybody here on ZeroHedge. I'm a Trader and YES, capitalizing on opportunities is ingrained in my DNA. So, I'm sorry if I offended you in any way, shape, or form, but from your response, you clearly look like a Follower and not a Leader. So Keep Following, because if it weren't for muppets like you, the Goldmans' and Stanleys' of the world would've been bankrupt long ago.

P.S: I've been a loyal ZeroHedger longer than your underdeveloped mind can fathom.

Wed, 03/20/2013 - 12:04 | 3352435 Bananamerican
Bananamerican's picture

"Don't follow leaders..."

Wed, 03/20/2013 - 13:20 | 3352848 JOYFUL
JOYFUL's picture

You flatter me sir.

I can fathom that you've been around here for quite some time, but dust builds up in corners and what of it?

I have no idea what you're on about, as I have not directed any barb your way, and having read your rather lame diatribe against an imagined provocation, very much doubt I would take the time to bother doing so, no matter the circumstance. Please lead yourself to a quiet corner and try to calm yourself down.

Wed, 03/20/2013 - 13:53 | 3353036 OptionNinjaNYC
OptionNinjaNYC's picture

Well, the final words I waste on you are as follows:

At least I'm trying to contribute something in my own small way; I get it if you don't like my style or method. But thats the beauty of Free Will. No ones asking you to click on the links me or any other ZeroHedgers post, let alone spend your brain cells (whatever's left of them) on composing sophisticated and well researched (on Shakespearian responses, while in the process exposing your own insecurities to the world to laugh at.

"It has been said that something as small as the flutter of a butterfly's wing can ultimately cause a typhoon halfway around the world."

--- Butterfly Effect, Chaos Theory. 


Wed, 03/20/2013 - 14:13 | 3353141 JOYFUL
JOYFUL's picture

Maybe it's been a bad day on the 'trading floor'? I have no idea what's bit you, or why you imagined I had any interest in 'your posts'  let alone urge to comment upon one, but in all sincerity I urge you to stop embarrassing yourself further here...whoever you are. Perhaps a hobby would help?

Wed, 03/20/2013 - 14:59 | 3353408 OptionNinjaNYC
OptionNinjaNYC's picture

Well, at least some of us do actually TRADE; unlike divorced college professors moonlighting as Traders. You remind me of John Nash from A Beautiful Mind; you've probably created an imaginary life for yourself in which you pretend to be a Trader, trading Monopoly Money. Good for you.

People with self-esteem issues who are an embarassment themselves, tend to perceive others in the same vein.

My new hobby is butchering Muppets. Anyone interested in signing up? First 14 days are FREE.


Wed, 03/20/2013 - 14:20 | 3353173 Tsukato
Tsukato's picture

You're kinduv an embarrassment. Good luck with that.

Wed, 03/20/2013 - 14:47 | 3353350 OptionNinjaNYC
OptionNinjaNYC's picture

That coming from an ass clown named Tsukato? You seem like the kind of guy who'd suck a bag of dicks for a dollar. How much does a bowl of rice cost in Japan, given the current exchange rate of USD/JPY at 95.50.

Wed, 03/20/2013 - 11:34 | 3352310 LongBallsShortBrains
LongBallsShortBrains's picture

If it isn't Switzerland and the UK, it must be Enron and, mf global?

Mexico and Guatemala?

California and Illinois?

Heckle and Jekyll?

The fed and the ecb?

Snoopy and Woodstock?

Bourbon and coke?

Wed, 03/20/2013 - 12:43 | 3352411 Fred Garvin
Fred Garvin's picture

Cyprus situation explained by Quentin Tarentino and Guy Ritchie

Wed, 03/20/2013 - 10:21 | 3352048 Shizzmoney
Shizzmoney's picture

"What are the US and UK?"

I'll take, "Failures in Central Banking" for $800, Alex.

Wed, 03/20/2013 - 10:24 | 3352065 Stackers
Stackers's picture

UK and Switzerland. US banking system while large is offset by an equally large GDP.

Wed, 03/20/2013 - 10:42 | 3352085 hedgeless_horseman
hedgeless_horseman's picture



Russian billionaires tend to avoid the USA and UK for fear of being recognized from their days working for the KGB.  What is the statute of limitations for espionage?


Spanish police arrested four people Friday suspected of laundering large sums of money from Russian criminal gangs as part of a network they said may be linked to Semion Mogilevich, one of the FBI's ten most wanted fugitives.


There is nothing complicated about the charges against the defendants. According to the indictment, Alexander A. opened several accounts with Berliner Bank and a branch of Commerzbank in the southern Germany city of Esslingen, as part of a plan to invest Mafia millions in Germany, and established a Germany company, S+L Iba GmbH, to manage the funds. Alexander L., 59, a former Russian investigating magistrate, was made managing director of the company. An old friend from Moscow, Oleg R., 47, was given the job of handling transactions.

Wed, 03/20/2013 - 10:49 | 3352156 Crazed Weevil
Crazed Weevil's picture

We wouldn't do anything to them no. In the UK we might poison the odd one, but mostly we let them buy football teams...

Wed, 03/20/2013 - 11:01 | 3352176 JeffB
JeffB's picture

I doubt it's Spain given one of the hints in the article:

"what the supposedly very stable countries X and Y"

Maybe substitute Switzerland for Spain?

Wed, 03/20/2013 - 10:33 | 3352092 BurningFuld
BurningFuld's picture

"US banking system while large is offset by an equally large GDP."  You are correct. And a large portion of the GDP is generated by.....Banking!!!!  It's like a perpetual motion machine...only it spits out money!!!  Nirvana has been realized.

Wed, 03/20/2013 - 10:42 | 3352133 pods
pods's picture

The US has green shoots and Unicorns.

Skittles too.


Wed, 03/20/2013 - 10:46 | 3352142 kito
kito's picture

Skittles are banned....high fructose corn syrup....

Wed, 03/20/2013 - 10:52 | 3352146 hedgeless_horseman
hedgeless_horseman's picture



Green shoots, unicorns, and skittles? 

Russian Billionaires prefer real things like gold coins, mini giraffes, and caviar.

Wed, 03/20/2013 - 10:53 | 3352163 toys for tits
toys for tits's picture




Wed, 03/20/2013 - 12:17 | 3352480 Doomer
Doomer's picture

That was actually a commercial, but for what, I don't remember.  Perhaps satellite TV?


Wed, 03/20/2013 - 13:49 | 3353003 Creepy Lurker
Creepy Lurker's picture

Whatever it is, it's freakin' hilarious.

He should buy the chick a sense of humor.

Wed, 03/20/2013 - 13:56 | 3353057 serog
serog's picture

yep.  DirecTV

Wed, 03/20/2013 - 10:58 | 3352187 Jack Sheet
Jack Sheet's picture

That chick is going to sit on the giraffe.

Wed, 03/20/2013 - 11:08 | 3352211 hedgeless_horseman
hedgeless_horseman's picture



Lucky giraffe.  I am sure that it is already on YouTube.  Do you know the search terms using the cyrillic alphabet?  Or did you see it live in Macau?

Wed, 03/20/2013 - 11:10 | 3352225 idea_hamster
idea_hamster's picture

Rule 34, baby.

Wed, 03/20/2013 - 11:33 | 3352309 zenmeister
zenmeister's picture

"Opulence, I has it!"

Wed, 03/20/2013 - 12:30 | 3352552 thisandthat
thisandthat's picture

New updated version coming soon revised to "Opulence, I had it!"

Wed, 03/20/2013 - 13:44 | 3352966 akak
akak's picture

"Vengence --- I will have it."

Wed, 03/20/2013 - 11:08 | 3352216 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

and the giraffe will complain not

Wed, 03/20/2013 - 11:20 | 3352265 toys for tits
toys for tits's picture

My one-eyed giraffe definitely wouldn't complain.

It might get sick and throw up though.

Wed, 03/20/2013 - 11:04 | 3352203 TrumpXVI
TrumpXVI's picture

You left out the bitchez....oh wait, they're not real.

Wed, 03/20/2013 - 11:14 | 3352237 Cacete de Ouro
Cacete de Ouro's picture

sorry to burst the bubble, my curiosity got the better of me.....worth reading though....


Wed, 03/20/2013 - 11:24 | 3352255 hedgeless_horseman
hedgeless_horseman's picture



Fuck me.  Next your going to tell us that gold coins are tungsten and the caviar is really a mix of squid ink, apple pectin, sea urchin extract, oyster, scallop and a gum derived from kelp.

At least we know that Ukranian hookers' tits are real.

Wed, 03/20/2013 - 12:19 | 3352487 Doomer
Doomer's picture

In Ukraine, the tits get a hooker.

Wed, 03/20/2013 - 11:45 | 3352354 fudge
fudge's picture

Gawd :))))) I've not seen this posted for ages,need to dig out a old cd .... Yay !! Ben S :))))))

thanks man.


Wed, 03/20/2013 - 10:34 | 3352093 redpill
redpill's picture

+1 Those are what came to my mind as well.

Wed, 03/20/2013 - 12:59 | 3352461 AlaricBalth
AlaricBalth's picture

I'm guessing Luxembourg and Ireland. 

Luxembourg because it is considered a tax haven and has no tax on interest from offshore bank accounts. And it has a relatively small GDP of about USD 59 Billion.



Wed, 03/20/2013 - 10:40 | 3352120 Pizza spaghetti...
Pizza spaghetti and mandolino's picture

Austria and Switzerland is the answer. The UK has has a larger proportion but it is a G8 government and therefore the British pound is a reserve currency. That means the UK, as the USA can print all needed bank bail-out money.

Wed, 03/20/2013 - 11:00 | 3352190 JeffB
JeffB's picture

Sounds like a good guess to me.


Wed, 03/20/2013 - 11:36 | 3352314 crito
crito's picture

Switzerland is also a reserve currencey, and they are currently printing a lot too

Wed, 03/20/2013 - 11:58 | 3352410 hapless
hapless's picture

Switzerland was 12x+ in 2007.

Wed, 03/20/2013 - 12:39 | 3352615 WallowaMountainMan
WallowaMountainMan's picture

agreed, too large for the numbers in the chart given.

Wed, 03/20/2013 - 11:14 | 3352236 TJ00
TJ00's picture

And this is before the UK givernments new scheme to increase leverage in housing market-

George Osbourne hopes he can pass 10x before we implode, that way the whole country can be in the Guiness Book of Records.


Wed, 03/20/2013 - 11:18 | 3352259 orez65
orez65's picture

It's France and the UK.

Wed, 03/20/2013 - 12:04 | 3352431 jimmytorpedo
jimmytorpedo's picture

My money is on Tonga and Tuvalu.

Wed, 03/20/2013 - 12:50 | 3352676 Likstane
Likstane's picture

Black Dutch Republic and Translyvania

Wed, 03/20/2013 - 11:44 | 3352348 Ratscam
Ratscam's picture

blue is Switzerland
orange could be Lichtenstein, but looking at the wording of the question I feel more comfortable with the UK

Wed, 03/20/2013 - 12:37 | 3352591 buckethead
buckethead's picture

Which is falsely bolstered by it's fraudulent banking system.

Wed, 03/20/2013 - 10:26 | 3352072 Capitalist
Capitalist's picture

Agree with Stackers, UK and Switzerland.

Wed, 03/20/2013 - 10:38 | 3352108 Jayda1850
Jayda1850's picture

The UK has to be one, Farage was very keen on telling the cypriots to keep their enormous banking system going. As much as I like Farage , he knows that the only industry britain has is there financial sector and they will protect it to the death.

Wed, 03/20/2013 - 10:52 | 3352161 Rip van Wrinkle
Rip van Wrinkle's picture

And death it will be. There is absolutely no recognition by the vast majority in the UK that we are heading to bankruptcy and tyranny. Absolutely none.

Wed, 03/20/2013 - 11:17 | 3352253 Jayda1850
Jayda1850's picture

There is absolutely no recognition by the vast majority in the UK that we're heading toward bankruptcy and tyranny.

There is absolutely no recognition by the vast majority in the UK that we're bankrupt and living under tyranny.

Fixed it for you.

Wed, 03/20/2013 - 13:18 | 3352834 Melin
Melin's picture

I took Farage's comments to mean that since "Cyprus is a bank with a country attached" (I would attribute that but can't remember), the countryfolk may want to consider saving their only industry.  Not to protect the industry to the death but to save their own lives while they rationally get onto more productive industries and a reality-based financial sector.

Wed, 03/20/2013 - 10:22 | 3352049 TeamDepends
TeamDepends's picture

Cost to Russians (some of whom are very well-connected) of Cyprus bail-in:  $31,000,000,000.  Watching the look on the faces of IMF banksters when Big Bad Boris kicks the door in:  Priceless.

Wed, 03/20/2013 - 10:29 | 3352081 insanelysane
insanelysane's picture

Madame Lagarde tried to be Natasha.

Wed, 03/20/2013 - 11:49 | 3352372 eaglerock
eaglerock's picture

Do all the Cypriot's get their knee caps broken also?

Wed, 03/20/2013 - 10:22 | 3352050 agent default
agent default's picture

I will make a guess, Switzerland and Luxemburg?

Wed, 03/20/2013 - 10:27 | 3352075 Cognitive Dissonance
Cognitive Dissonance's picture

I say Click and Clack.

I always thought they were running a junk (bond) racket. :>)

Wed, 03/20/2013 - 10:35 | 3352102 GMadScientist
GMadScientist's picture

"Doan lissanna my bruddah"

Wed, 03/20/2013 - 10:54 | 3352173 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

One of these days those guys are gonna laugh themselves TO DEATH!

Wed, 03/20/2013 - 11:53 | 3352394 s2man
s2man's picture

And don't drive like MY brother!

Wed, 03/20/2013 - 10:58 | 3352188 Being Free
Being Free's picture

Singapore, Bahama

Wed, 03/20/2013 - 11:17 | 3352251 TheFourthStooge-ing
TheFourthStooge-ing's picture

Lots of plausible answers here. Could one of them be the Cayman Islands?

Perhaps one of the Baltic states like Latvia?

Wed, 03/20/2013 - 17:44 | 3354222 French Frog
French Frog's picture

I think that you deserve at least a 'bravo' for being the only one to have mentioned Singapore.

"Clap clap clap"

Wed, 03/20/2013 - 10:22 | 3352053 Jason T
Jason T's picture

Japan and UK

Wed, 03/20/2013 - 10:31 | 3352056 Cursive
Cursive's picture

The FIRE (Financial, Insurance and Real Estate) sector is too large.  These are the rent seekers, or vampire squid if you prefer, that add costs where none existed before their existence.  These are the unproductive, moneyed interests that suck the productive wealth from the rest of society.


ETA: Swiss and UK

Wed, 03/20/2013 - 10:23 | 3352057 frenchie
frenchie's picture

LU, CH, US ??

Wed, 03/20/2013 - 10:23 | 3352059 frenchie
frenchie's picture

oops forgot UK

Wed, 03/20/2013 - 10:24 | 3352063 bigwavedave
bigwavedave's picture

Ireland & Australia

Wed, 03/20/2013 - 10:24 | 3352064 PUD
PUD's picture

Tyler..personal do you keep this up? For years you've been this paul revere and for years these bastards defy every truth, every logic, every do you keep going? My head wants to explode.

Wed, 03/20/2013 - 10:41 | 3352122 Unprepared
Unprepared's picture

Hence the legend, TYLER is an algo that reached self-conscience and went rogue.

And to answer the question: Lux and Switz

Wed, 03/20/2013 - 10:46 | 3352141 machineh
machineh's picture

He was turned to steel 
In the great magnetic field 
When he travelled time 
For the future of mankind 

Now the time is here 
For Iron Man to spread fear 
Vengeance from the grave 
Kills the people he once saved 

Heavy boots of lead 
Fills his victims full of dread 
Running as fast as they can 
Iron Man lives again!

Wed, 03/20/2013 - 10:55 | 3352174 KnightTakesKing
KnightTakesKing's picture

Tyler, the algo has an imaginary double who is called, SkyNet. Should we be worried?

Wed, 03/20/2013 - 12:17 | 3352476 Esso
Esso's picture

Not me, I'm long Cyberdyne Systems.

Wed, 03/20/2013 - 10:53 | 3352165 SubjectivObject
SubjectivObject's picture

Because target practice, as it were at the endless arcade, with a fab accurate and powerful .... er ... weapon, and ballistic; is a definition of endless fun.

The gawker/onlooker crowd really needs to get in on the act, though, maybe impair the targets before they can pop up.

Wed, 03/20/2013 - 11:12 | 3352229 Silver Bully
Silver Bully's picture

'Tyler..personal do you keep this up?'

Multiple authors and Drudge-like article linking makes for a busy financial blog.

Wed, 03/20/2013 - 10:24 | 3352066 gniuz
gniuz's picture

Greece and Malta

Wed, 03/20/2013 - 10:25 | 3352070 CheapBastard
CheapBastard's picture

Obviously, it's the depositors' fault.

Wed, 03/20/2013 - 10:45 | 3352137 bank guy in Brussels
bank guy in Brussels's picture

Yes, ha !

The depositors and the 'evil savers' ... creating the 'savings glut' around the globe, that the central banker apologists like to blame for the crisis

For a generation to come ahead now, 'savings' will involve metals & mattresses instead ... so the 'bank savings glut' won't be a problem anymore


Wed, 03/20/2013 - 10:36 | 3352071 Grimbert
Grimbert's picture

UK will be one of them. Plenty of Oligarchs here


edit: and I'm going to have Belgium as my 2nd choice.

Wed, 03/20/2013 - 10:27 | 3352076 ziggy59
ziggy59's picture

Slovenia... Banks distressed, need cashola

Wed, 03/20/2013 - 10:27 | 3352077 Silver Garbage Man
Silver Garbage Man's picture

This is why I love Zero Hedge. So much great info.

Wed, 03/20/2013 - 10:31 | 3352078 Karl Napp
Karl Napp's picture

Luxembourg`s exposure is twice that of Cyprus (515%), so I guess it is CH and UK.

Wed, 03/20/2013 - 10:29 | 3352080 GMadScientist
GMadScientist's picture

Japan and US, like a mug.

Wed, 03/20/2013 - 10:30 | 3352083 jcamargo
jcamargo's picture

UK and Switzerland. Imagine what would happen to London if Tony Blair had his way.

Wed, 03/20/2013 - 10:31 | 3352084 Arkadaba
Arkadaba's picture

US and UK

Wed, 03/20/2013 - 10:32 | 3352087 CunnyFunt
CunnyFunt's picture

Lichtenstein & Luxembourg

Wed, 03/20/2013 - 10:32 | 3352088 Mine Is Bigger
Mine Is Bigger's picture

U.K. and Ireland?

Wed, 03/20/2013 - 10:33 | 3352090 Schmuck Raker
Schmuck Raker's picture

When I was a kid I used to hate pop quizzes.

Now, I rather enjoy them...go figure.

Wed, 03/20/2013 - 10:34 | 3352094 rehypothecator
rehypothecator's picture

Can't be the US.  We've got a quarter quadrillion in financial "assets," aka derivatives.  Or do those net out to, um, zero? <cough>

Wed, 03/20/2013 - 10:35 | 3352096 slightlyskeptical
slightlyskeptical's picture

Isle of Mann


Wed, 03/20/2013 - 10:42 | 3352132 Ropingdown
Ropingdown's picture

..or Switzerland

Wed, 03/20/2013 - 10:35 | 3352097 Stud Duck
Stud Duck's picture

The Russian Bear is not going to take this haircut without a fight! They will just recoup the loss over a few years  through their prices on natural gas and it will be Germany that eventually pay the loss through its natural gas.

The German should of known better than to cut a deal with the Russians on nat gas. I guess the Germans think that the Russian have forgot about WW2.


Wed, 03/20/2013 - 11:45 | 3352353 Lebensphilosoph
Lebensphilosoph's picture

Which 'Germans', idiot?

Wed, 03/20/2013 - 10:35 | 3352098 ekm
ekm's picture

We could be up for a surprise today. Let's see.

Wed, 03/20/2013 - 10:35 | 3352099 blue_yeti
blue_yeti's picture

Luxembourg and the Cayman Islands...? Either way its bullish

Wed, 03/20/2013 - 10:36 | 3352105 BigInJapan
BigInJapan's picture


Y: Japan

Wed, 03/20/2013 - 10:36 | 3352107 BurningFuld
BurningFuld's picture

Ben Bernanke and Carlos Slim........Oh wait.....

Wed, 03/20/2013 - 10:38 | 3352109 y3maxx
y3maxx's picture

Friends, who has forgotten that Germany's been printing and readying "Deutchmarks" as the new European Currency?

European citizens withdraw all their Banks Savings....then Germany declares the Euro "worthless".

Game, Set and Match

Wed, 03/20/2013 - 10:38 | 3352113 ziggy59
ziggy59's picture

Cyprus crisis deepens: Bailout rejected, banks may not reopen

Cypriot finance minister doesnt look happy exiting russian finance ministry..

Wed, 03/20/2013 - 10:39 | 3352117 W74
W74's picture

The problem is including financial shuffling with GDP at all.  What part of "Production" was lost in translation when factored Grossly and Domestically?

Wed, 03/20/2013 - 10:40 | 3352123 pnfteixeira
pnfteixeira's picture

Lichtenstein and Luxembourg ????

Wed, 03/20/2013 - 10:41 | 3352124 waterwitch
waterwitch's picture

Japan and Netherlands

Wed, 03/20/2013 - 10:41 | 3352128 Debugas
Debugas's picture

UK and Lichtenstein

Wed, 03/20/2013 - 10:41 | 3352129 Oligarch
Oligarch's picture

X. Germany

Y. France

Wed, 03/20/2013 - 10:42 | 3352131 pnfteixeira
pnfteixeira's picture

or Greece and Ireland

Wed, 03/20/2013 - 10:43 | 3352134 eclectic syncretist
eclectic syncretist's picture

Bernanke you stupid motherfucker, get Krugman's head out of your ass and beat down silver here so I can pick up some long-term PAAS calls cheap, you jackass! 

Wed, 03/20/2013 - 10:43 | 3352135 apberusdisvet
apberusdisvet's picture

Actually all the major banksters would qualify, if they were sovereigns.  Does corrupt control over sovereigns count?

Wed, 03/20/2013 - 10:46 | 3352143 Stuck on Zero
Stuck on Zero's picture

Maybe the answer to x is here:


Wed, 03/20/2013 - 10:46 | 3352144 Seasmoke
Seasmoke's picture

North Korea and Iran.

Wed, 03/20/2013 - 10:46 | 3352145 JeremyWS
JeremyWS's picture

Switzerland and Lativa

Wed, 03/20/2013 - 10:47 | 3352147 optionsman
optionsman's picture

UK and Switzerland

Wed, 03/20/2013 - 13:05 | 3352767 Belarusian Bull
Belarusian Bull's picture

Hint worked good for you :)

Wed, 03/20/2013 - 10:48 | 3352150 jmcadg
jmcadg's picture

Switzerland and Italy

Wed, 03/20/2013 - 10:50 | 3352157 toys for tits
toys for tits's picture


Latvia and Cayman Islands.


BTW, did anyone hear that Vladimir Putin and Steven Seagal open new sports complex in Moscow.

Wed, 03/20/2013 - 11:46 | 3352358 IridiumRebel
IridiumRebel's picture Good they BROKEred a deal.....

Wed, 03/20/2013 - 10:51 | 3352158 Confundido
Confundido's picture

Why should we think the financial dimension of Cypriot institutions within political borders?? What matters is not the country but the currency zone (i.e. euro zone) because the risk is not national. The guarantee on deposits was never provided by the government of Cyprus, but by the ECB. Therefore, it is stupid to think that Cyprus is facing a run on banks. Its the Euro zone that is facing the run!

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