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ECB Gives Cyprus March 25 Liquidity Ultimatum

Tyler Durden's picture


As reported yesterday, Cyprus banks are now expected to reopen next Tuesday. We would boldly go ahead and take the under following overnight news that the ECB has once more escalated its political interventions (remember the lies about "apolitical, independent" Central Banks - good times...), and following a Reuters report yesterday that the ECB is prepared to let Cyprus go, the FT now has doubled down on the propaganda, reporting (in an article with no less than five authors) that the ECB has issued an ultimatum to Cyprus to agree to a bailout by Monday (which is a holiday), or the free liquidity ends.

"The European Central Bank raised the stakes in the Cyprus crisis on Thursday, telling Nicosia it had until Monday to agree a bailout with the EU and International Monetary Fund or it would cut off emergency liquidity provision to the country’s banks. The hardline stance from the ECB sets a clear deadline for Cyprus to agree to a plan after its parliament rejected a bailout negotiated at the weekend that would have taxed the deposits of account holders in the country’s banks." Which means yet another weekend of ad hoc choices and spontaneous decisions awaits, only this time with a key non-Euro actor involved in the face of Russia, whose interest just in case there is any confusion, is to see Cyprus crushed, so it can swoop in later and "acquire" the assets on the cheap, or preferably free, while the local population welcome the second coming of the glorious Red Army with open arms, delighted to be free of European slavery. Well played Putin.

From the FT:

The ultimatum came as EU leaders maintained pressure on Nicosia to come up with a new plan on its own and Russian prime minister Dmitry Medvedev told a visiting European Commission delegation that a solution had to include Russian participation.


“It is now up to the Cypriot authorities to come up with proposals,” Jeroen Dijsselbloem, chair of the committee of 17 eurozone finance ministers who negotiated the bailout, told the European Parliament on Thursday morning.


In a short statement the ECB said its 23-person governing council had agreed to maintain emergency liquidity provision to Cyprus’s banks until Monday. “Thereafter, Emergency Liquidity Assistance could only be considered if an EU-IMF programme is in place that would ensure the solvency of the concerned banks,” it said.


The country’s two biggest banks, Bank of Cyprus and Laiki, are believed to be reliant on Emergency Liquidity Assistance provided by the Central Bank of Cyprus. The ECB’s governing council can terminate ELA if it believes the banks receiving it are no longer solvent.


The move, however, raises the prospect of the ECB having to make good on its ultimatum on Monday, which could leave the banks unable to honour their obligations. Some analysts have speculated that the collapse of the banks could trigger a series of events that lead to Cyprus leaving the euro, with unpredictable consequences for the rest of the eurozone.

Will the ECB really be so stupid as to force the Cypriot bluff? Does Draghi really want to put the OMT into operation, which would inevitably happen once Cyprus is kicked out of the Eurozone, and a pan-European deposit run, which has so far been spared due to lack of tangible evidence that there is an actual "credibility" event in Cyprus due to what may be a permanent bank closure, becomes inevitable?

Most importantly, will the ECB truly shoot itself in the foot once again, and destroy all the so-called confidence it has rebuilt in the past four years on the back of endless promises, threats and urgings?

Tune in this time Monday to find out.


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Thu, 03/21/2013 - 07:50 | 3356194 GetZeeGold
GetZeeGold's picture



They'll give you their answer now if you'd like. Their offer is nothing.

Thu, 03/21/2013 - 07:54 | 3356212 zorba THE GREEK
zorba THE GREEK's picture

Russia gets the smart president, the U.S. gets the corporate lackies.

Thu, 03/21/2013 - 07:57 | 3356222 Zer0head
Zer0head's picture


JPMorgan clamps down on fees from payday lenders


"JPMorgan Chase is taking steps to protect its customers"

Thu, 03/21/2013 - 07:59 | 3356228 ziggy59
ziggy59's picture

The P stands for Pathological Liar, right?

Thu, 03/21/2013 - 08:23 | 3356321 TerminalDebt
TerminalDebt's picture

In Soviet Russia banks close you

Thu, 03/21/2013 - 08:27 | 3356331 TJ00
TJ00's picture

The P stands for Psychopath, right? - FTFY

Thu, 03/21/2013 - 09:02 | 3356447 sunnydays
sunnydays's picture

Putin is playing his hand as long as possible.  I have no doubt he has a plan in place for Cyprus.  He is controlling the situation.  He can come in and save Cyprus and help them leave the EU by getting their gas deposits and a Naval base.  A little revenge upon the EU?  This is high stakes poker not for the weak handed. 

Thu, 03/21/2013 - 08:00 | 3356234 disabledvet
disabledvet's picture

You mean the Russians or the "Euro group"? if it's the latter that strikes me as striking Anglo Saxon actually. if it's the Russians..."commence the bombing of Egypt" next? well played? really? seems to me France is the big winner here and the ghost of "Emperor Napoleon" and his still existing "Napoleonic Codes." but hey...we're just the one's who've been fighting this war for twelve years straight. what could the Americans possibly have gleaned from all that? clearly our protection is not wanted by anyone anymore save Japan it would appear. oh, well then...

Thu, 03/21/2013 - 12:32 | 3357657 SDShack
SDShack's picture

No, France will be the biggest loser in a EU implosion. When it all starts to unravel, the EU will split into 2 factions, North and South. Hell, it's almost there now. The North will see the writing on the wall and will start the exit party. Probably Germany after the September election as Merkel is finished after this fiasco. She has managed to screw this up royally by looking like a jack booted Nazi thug on one hand with her proposal, and a weak pawn on the other with the proposal being shot down so utterly. After Germany, other strong Northern countries will follow. France will try to exert themselves as defacto leader in the power vacuum, like they always do. The other South countries will look to France and France will provide token help, but they always do. France will be much worse off when the dust settles because those that leave last, will be the bag holder.

Thu, 03/21/2013 - 14:35 | 3358353 thisandthat
thisandthat's picture

I read about such possible future north/south split scenario maybe about two decades ago!

Culturally and historically it makes sense for north and south Mediterranean countries more closely relate between themselves, and could eventually be a solution for many of their current problems, some of which were created by the EU, itself, in benefit of northern countries.

Thu, 03/21/2013 - 09:02 | 3356448 Bangin7GramRocks
Bangin7GramRocks's picture

Blah, blah, blah. By Monday, the Fed, ECB, Russians, Chinese or Santa Claus will miracle them a "loan" and all will be fixed. Europe is saved and the markets can rise by 10% next week. Now lets get ready for the tournament!

Thu, 03/21/2013 - 10:54 | 3357084 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, that did seem to be the dominant theme on public radio news this morning.  The theme today was "Cyprus is going to Russia to get a bailout from them".  Something tells me this isn't too terribly fucking likely.  ECB pulled the "grim trigger" threat, which doesn't tend to work when you've shown yourself to be a complete fucking vagina.  Either the ECB capitulates here, or they decide to "show them who's man" and let Cyprus fail, which will, for sure, turn into a Lehman-scale contagion problem.  Honestly, this is probably going to happen regardless, but the scale will depend on what the ECB decides to do.  Russia is very much looking forward to it either way, they won big the last time there was a global financial crisis.  

Thu, 03/21/2013 - 10:09 | 3356812 Groundhog Day
Groundhog Day's picture

ECB:  We're not going to take this anymore, you have until march25th or else!

On March 25th: Cyprus does nothing

ECM: We meant MARCH 25th 2014

Thu, 03/21/2013 - 11:15 | 3357170 permafrost
permafrost's picture

I looked up what holiday March 25 was: Greek Independence Day.  Way to go ECB.

Thu, 03/21/2013 - 07:51 | 3356195 css1971
css1971's picture

Tuesday morning, the banks open they say.

Tuesday afternoon, the banks close again permanently.

Wednesday morning, CDS trigger all over the place.

Thu, 03/21/2013 - 07:59 | 3356226 swissaustrian
swissaustrian's picture

ISDA is going to call it a voluntary act, not a default.

Thu, 03/21/2013 - 08:04 | 3356247 GetZeeGold
GetZeeGold's picture



That parrot is not's just resting.

Thu, 03/21/2013 - 07:59 | 3356230 pods
pods's picture

I don't care how many times you use the paddles.  Time to call TOD.


Thu, 03/21/2013 - 08:31 | 3356340 css1971
css1971's picture

I've been rethinking this. They've caved every time previously. Why do I believe they won't fold like a piece of paper this time too?

I'm positioned as if they won't cave... It's starting to look stupid...

Thu, 03/21/2013 - 08:59 | 3356434 chindit13
chindit13's picture

No to the CDSs.  There's a total of $2 billion gross notional on the Cypriot Government, and none of its banks are in the top 1000 traded CDS issues, which means that if they have CDSs outstanding, the amounts are small.  They have plenty of problems without turbo charging it with CDSs.

Thu, 03/21/2013 - 11:03 | 3357119 Panafrican Funk...
Panafrican Funktron Robot's picture

"There's a total of $2 billion gross notional on the Cypriot Government"

Right, but how much gross notional on their banking sector?  Ah, see, this is the real problem.  And we're not just talking Cypriot banks.  Consider the Greek banks as well.

If you get the ebola virus because of a small cut in your pinky toe, guess what?  You still have ebola virus in your body.  

I agree that this is mostly going to be a crisis for the financial sector outside the TBTF, and probably intentionally designed for them to swoop in and acquire assets on the cheap, it's still going to be a crisis. 

Thu, 03/21/2013 - 12:35 | 3357667 SDShack
SDShack's picture

Wednesday afternoon, the Bernak boards the helicopter.

Thu, 03/21/2013 - 07:51 | 3356200 mdtrader
mdtrader's picture

Kind of ironic really because the Germans have fought so hard to save and prop the euro and eurozone, now they may actually cause the breakup.  For those people who think the weak countries dropping out of eurozone would be bullish for the euro. What would be the total losses for Germany on all this crappy paper. A trillion euros?  Anybody know?

Thu, 03/21/2013 - 07:59 | 3356225 Dr. Richard Head
Dr. Richard Head's picture

Much of it depends on the synthetic derivatives Goldman, JPMorgan, et al decide to create between now and then.

All hail Blankfein. All hail Dimon.

Is it time to offer our first born as a sacrifice to those doing god's work? Seems so......

Thu, 03/21/2013 - 08:02 | 3356241 pods
pods's picture

I am cueing up "Creeping Death" atm.  Seems fitting?


Thu, 03/21/2013 - 11:12 | 3357158 Panafrican Funk...
Panafrican Funktron Robot's picture

I tend to see something more active happening in the not to distant future.

Propaganda death ensemble
Burial to be
Corpses rotting through the night
In blood laced misery
Scorched earth the policy
The reason for the singe
The pendulum it shaves the blade
The strafing air blood raid

infiltration push reserves
Encircle the front llines
Supreme art of strategy
Playing on the minds
Bombard till submission
Take all to their graves
Indication of triumph
The number that are dead

Sport the war, war support
The sport is war, total war
When victory's a massacre
The final swing is not a drill
It's how many people I can kill


Be dead friend from abve
When darkness falls
Descend into my sights
Your fallen walls
Spearhead break through the lines
Flanked all around
Soldiers of attrition
Forward their ground
GRegime prophetic age
Old in its time
Flowing veins run on through
Deep in the Rhine
Center of the web
All battles scored
What is our war crimes
(Era forever more...war)

Propaganda war ensemble
Burial to be
Bones shining in the night
In blood laced misery
Campaign of elimination
Twisted psychology
When victory is to survive
And death is defeat

Sport the war, war support
The sport is total war
When victory's a massacre
When victory is survival
When this end is a slaughter
The final swing is not a drill
It's how many people I can kill 

Thu, 03/21/2013 - 08:05 | 3356253 disabledvet
disabledvet's picture

yeah well...if the Dmark (massively devalued) suddenly re-appears it's "all bail Blankfein, all Bail Dimon."

Thu, 03/21/2013 - 08:33 | 3356345 IamtheREALmario
IamtheREALmario's picture

The next judgment day is in September of 2015 unless they/we repent and follow God's laws ... which means, amongst other more important things a jubilee must take place. I don't know if they will be able to implement the great communist jubilee by 2015, but certainly by 2022 or 2029 at Apophis fly-by time... otherwise it may be "goodnight Irene"... hand of God and all.

How's that crazy talk for ya, eh?

Thu, 03/21/2013 - 08:06 | 3356257 ZeroPoint
ZeroPoint's picture

I read Germany's exposure is at least 2 trillion. They will go down just as hard as any of the smaller countries.

Thu, 03/21/2013 - 08:15 | 3356290 CustomersMan
CustomersMan's picture


If it were possible to add up the market losses so far, it would dwarf the bailout sum in spades, and it isn't over by a long shot. in addition the psychological cost in lost confidence and mis-trust is many times higher. So who have they screwed?

Thu, 03/21/2013 - 08:08 | 3356266 debtor of last ...
debtor of last resort's picture

That would be a relief. Not losses.

Thu, 03/21/2013 - 07:51 | 3356201 negative rates
negative rates's picture

I will gladly pay you one month from then, for a hamberger on March 25th.

Thu, 03/21/2013 - 07:52 | 3356203 847328_3527
847328_3527's picture
These Banks Are Likely to Fail This Year


Hanging by a thread

This year’s five banks most likely to fail are based on Texas Ratios determined by bank data as of the third quarter of 2012. (In last year’s list, all five of the previously listed banks have failed — the lowest Texas Ratio was 544 percent.)

Thu, 03/21/2013 - 07:52 | 3356204 Cookie
Cookie's picture

If the banks fold, the Russians lose everything. Putin will not let that happen to his mates from the security services

Thu, 03/21/2013 - 08:00 | 3356231 Dr. Richard Head
Dr. Richard Head's picture

Wait banks fold? The stress test of 18 months ago said everything was ice cream with a fucking cherry on top.

Thu, 03/21/2013 - 08:06 | 3356258 negative rates
negative rates's picture

I think it was cherry T. Boone Pickens type ice cream. You just interpreted it badly.

Thu, 03/21/2013 - 10:39 | 3356994 falak pema
falak pema's picture

And...they tested 14 banks in the US and said they were all clean...hmmm/

Thu, 03/21/2013 - 08:06 | 3356251 reload
reload's picture

Do they?

What if this is all theatre - and the deal is already done.

Russia Gets Cyprus, some nice ports and a gass field.

In return it gets out of Syria & distances itself from Tehran a bit.

Obama, the MIC and Isreal get a much cleaner run and the resources in the ME.

Germany looks stupid and vindictive - but has lit the fuse to have to hopelessly broke southern Euro states break away from `the core`

In the ensuing chaos - (throw in a sudden halt to printing, a bust PD (or 2) a collapse in asset prices) the people who really matter, and who are ready and liquid, swap the recently printed they hold for hard assets.

Populations beg for government support - more printing etc etc, and accept further losses of freedom without question.

Where is James Bond when you need him? 

Thu, 03/21/2013 - 08:27 | 3356328 IamtheREALmario
IamtheREALmario's picture

Yes, all tactical and possible ... but that is not the goal and strategy. The endgame is globalization under a communist regime. Obummer and Merkel are both commies put in place from a 50 year old plan. I like your thinking. Only it is too short-term.

Thu, 03/21/2013 - 08:43 | 3356366 ElvisDog
ElvisDog's picture

Umm, I would say the "50 year old plan" is failing miserably. Spain, Italy, Greece, Cyprus, are all moving away from centralization. Do you read the fucking news or just stick with the One World Order bullshit? Kunstler may have his own blinders on, but he's correct that the future will be less (effective) centralized control, not more.

Thu, 03/21/2013 - 09:43 | 3356630 falak pema
falak pema's picture

you can thank the likes of Julian Assange who have pulled the wool from in front of our collective eyes, the heretic spokeman against Western "we save the world in pax americana" gang religion.

Thats why keeping the Internet under 'Hippocratic' oath of transparency, under no evil Empire control, to allow the truth to emerge at the flash of an eyelid, is so important. Google big data world control is not the paradigm that should unfold.  

Be bold, take hold and never kneel to the new Bernard Gui's; always cherish memory of Bernard Delicieux the man who defied the Inquisitory fold even to life imprisonment cell; Assange's role model. 

These guys never die like Spartacus or Leonidas. As for James Bond, lol...he is what John Le Carre would call a Tailor from Panama, who needs to go lie in the cold and never come back unless called by Moneypenny for some xtra time lovey dovey; thats fine as he always drinks Dom Perignon afterwards like a good fellow.

Thu, 03/21/2013 - 09:52 | 3356720 ElvisDog
ElvisDog's picture

Falak, I don't entirely follow what you wrote, but I'm pretty sure I agree with it. There is no group of evil geniuses who sit around a table somewhere and decide the world's fate. The world is run by a relatively small group of oligarchs who are no smarter than you or I. Each oligarch has their own fiefdom, and they do whatever is needed to protect that fiefdom. Their time horizon is short term. The only time they work together is when their interests align, but much of the time their interests do not. To think that 50 years ago some Dr Evil group thought "In 2008, we'll put a black, communist in as president of the U.S. to do our bidding, (bwaa-hah-hah-hah)" is a stupid, adolescent fantasy.

Thu, 03/21/2013 - 10:04 | 3356783 falak pema
falak pema's picture

have one on me and the penny will drop, it always does once we feel good in our blue suede shoes! 

I agree these guys with Dr NO dreams and Bloefeld  schemes always end up like Droopy dog in the dog house.

Look at Dubya, he is painting poodles in his bathtub to forget what he did in Abu Graith...he has to get off that bottle! 

As for the grand ole plan to dominate the world its got Helicopter Ben printing toilet paper to save their NWO necks.

Thu, 03/21/2013 - 08:18 | 3356299 keep the bastar...
keep the bastards honest's picture

I hope not. I dont get your startement. the russians should get ther 5 trillion shifted to the bank they own in Cyprus.. Its all been setup subsequent to the 70% greek bondholder haircut.

Russians keep cruising. 

Thu, 03/21/2013 - 08:43 | 3356363 spine001
spine001's picture

We don´t know what happens if the banks fold. Let me play a simple scenario. The Russian mob has CDS (like an insurance protection) on those banks with some banks in Greece, Portugal, Italy and-or Spain. Once the Cyprus banks go, the CDS get triggered and some banks in the PIIGS fold, triggering more CDS, but this time they will go to banks like Deutche bank, UBS, Credit Suisse, Bank of America, JPM, Citibank...

Do you really need me to keep on playing the ¨contagion¨ scenario?

It can get very ugly and the Russian mob knows it and probably can help. Do you think that they were going to let the wealth tax pass to save those banks? No way, they will call the bluff and break up the world financial system if they possibly can. That would allow to win the cold war, after suffering a tactical loss a few years ago...

The key questin is if the ECB-EU-IMF will be stupidit enough to fall into this clear trap. This looks to me like a chess game between Kasparov and Bobby Fisher many years ago...

Until next time,


Thu, 03/21/2013 - 09:08 | 3356485 Tango in the Blight
Tango in the Blight's picture

Fisher never played against Kasparov. Maybe you are referring to Boris Spassky.

Thu, 03/21/2013 - 09:01 | 3356379 JOYFUL
JOYFUL's picture

If the banks fold, the Russians win everything.

A collapsed Eurozone has the Germans heading for the eastern exit - finally free of the Atlanticist controllers - and and rest of the core countries scrambling to find a safety net. Stop and think why the Fed has been pouring money into the Eurozone to prop it up.

Heinz learned a big lesson from stopping the tanks short of Baku and then diverting back to Volvograd don't get far without petroleum products. Commercial alliances with energy-rich, emerging middle class countries like Russia, Turkey*, and Iran beat the hell out of playing sugar daddy for dead beat neighbors whose import ability is tapped out long time gone.

What the Russians lose in fiat  is nothing compared to what they will gain in trade and influence. So a few mid-tier players lose their loot. Putin's got a lot of sugar-plums to hand out to the tios in the future.

*Turkey not energy rich you sneer>!???...don't kid yourself, once things get sorted, they intend to be brokers of every major landline deal between Europe and the energetic east. Petro Gold is just gettin the tide goes out on ZATO's last gambit.

edit: that 'golden rocket' that just took off on the chart tells me that some of the trade is thinkin along the same lines...looks like it's gonna be a classic "Fast Heinz Guderian" breakout gents. You could just see that tight control zone this morning was gonna snap!

Thu, 03/21/2013 - 07:55 | 3356214 Fips_OnTheSpot
Fips_OnTheSpot's picture

Irony: Monday's holiday is "Greece Independence Day"

Thu, 03/21/2013 - 08:11 | 3356276 disabledvet
disabledvet's picture

again "the timing is too perfect and the gaming too precise." if someone has thought this one out they've thought out a lot of other contingencies as well. not a betting man (other than with my life) but my money is still on the French as "the trigger man" here.

Thu, 03/21/2013 - 07:57 | 3356221 swissaustrian
swissaustrian's picture

The leaked conference call is quite an eye-opener:

"Markets believe that we will find a solution and that we will provide more money and this might not be the case," one of the participants on the call said, according to the notes."

Thu, 03/21/2013 - 08:10 | 3356269 CustomersMan
CustomersMan's picture


This whole saga surrounding Cyprus presents a unique opportunity for the BRIC Countries to step forward and intervene on behalf of Cyprus. Since it is a highly visible series of events, it could raise their profile around the world in ways marketers could only dream of. Why haven't we heard or seen any action from that corner?

Thu, 03/21/2013 - 08:12 | 3356280 disabledvet
disabledvet's picture

again "the French did it." Viva la France.

Thu, 03/21/2013 - 07:58 | 3356223 ziggy59
ziggy59's picture

Cyprus is learning there is no free finance...
Squidly entangles all in its tentales

Surprised no arms cut off yet..

Thu, 03/21/2013 - 07:59 | 3356229 HD
HD's picture

Murder suicide?

Thu, 03/21/2013 - 08:03 | 3356243 swissaustrian
swissaustrian's picture

Shot in the head three times (EU, ECB, IMF) from behind: clear and obvious suicide.

Thu, 03/21/2013 - 08:04 | 3356232 fockewulf190
fockewulf190's picture

Let me take a stab...Putin comes up with the blood money, he gets his Club Med naval base for his cruisers and destroyers, makes sure he becomes a major shareholder within the banking system, and starts sifting through the customers, making a list of which Russians he's going to "ask" for support, and which ones end up in a "tax court" and a nice visit to the gulags. Then, just to take a stab at the EU, he offers membership within the CIS. This emperor does have clothes.

Thu, 03/21/2013 - 08:10 | 3356272 fonzannoon
fonzannoon's picture

why can't putin tell his buddies to take public losses so they can all act outraged and just print some rubles behind the scene and make them whole?

Thu, 03/21/2013 - 08:19 | 3356298 disabledvet
disabledvet's picture

you've been a roll for so long i really can't say enough good about it. (from me that's a compliment...i think.) anywho EXACTLY. the problem however is that there is a lack of "transparency" here and so while the Russians billionaires get in line first the question becomes "who's next?" I would argue "Russian Olympics." And after that? "The Assad Regime." And after that? I imagine the phone's ringing off the hook from Venezuela. And after that? How about Governing Russian itself? blah blee blah blee blah blee blah. Let's face this Empire stuff is WAY over-rated. Save your people, focus on the diplomatic corps, find out "who the phuck the Euro group is." Putin's KGB...he knows the routine.

Thu, 03/21/2013 - 08:52 | 3356398 Apostate2
Apostate2's picture

You are closer than you may think about this convoluted geopolitical fuck-up (or is that fuck-down).

Thu, 03/21/2013 - 10:52 | 3357045 fockewulf190
fockewulf190's picture

@ fonz....Because homeski don't do that.

Thu, 03/21/2013 - 08:00 | 3356235 Bad Attitude
Bad Attitude's picture

Dear Leader has been in uncharacteristically quiet on this whole Cypris issue.

Thu, 03/21/2013 - 08:04 | 3356245 Quinvarius
Quinvarius's picture

He doesen't understand what is happeneing any more now than he did when he raised taxes on the middle class and poor in the middle of a depression.  He drinks the "everything is ok" Koolaid that Jamie Dimon pisses in his face.

Thu, 03/21/2013 - 08:07 | 3356259 GetZeeGold
GetZeeGold's picture



The Dear Leader is in Isreal......why he's there no one seems to know.

Thu, 03/21/2013 - 08:21 | 3356308 IamtheREALmario
IamtheREALmario's picture

The Dear Leader is simply following orders. The real question is "from whom?". My guess is evil space aliens. It would explain a lot.

Thu, 03/21/2013 - 09:12 | 3356510 Pseudo Anonym
Pseudo Anonym's picture

my guess is that the teleprompter is in the shop for repair

Thu, 03/21/2013 - 11:16 | 3357176 hoos bin pharteen
hoos bin pharteen's picture

They didn't have a travel adapter so they could plug it in in Israel.

Thu, 03/21/2013 - 12:42 | 3357711 SDShack
SDShack's picture

Along with the Presidential limo.

Thu, 03/21/2013 - 10:01 | 3356763 ISEEIT
ISEEIT's picture


Thu, 03/21/2013 - 08:02 | 3356239 Yen Cross
Yen Cross's picture

  I like the way the euro spiked 50 pips and the dollar sold of 1/3 of a cent just before the Italian and Spanish bond auction earlier. [coincidence]? The takeup was strong as well.  Another [WTF] moment in Europe. Who in their right mind would want that toxic paper?


     EUR             Spanish 10-Year Obligacion Auction     4.898%           4.917%      
Tentative       EUR             Spanish 5-Year Bonos Auction     3.557%           3.572%      
03:00       EUR             French 2-Year BTAN Auction     0.32%           0.41%      
03:00       EUR             French 5-Year BTAN Auction     0.89%           1.02%    

Thu, 03/21/2013 - 08:05 | 3356250 swissaustrian
swissaustrian's picture

I guess the ECB has managed to build a shadow primary dealer system: Funding for banks via LTRO in exchange for bidding at sovereign auctions.

Thu, 03/21/2013 - 08:08 | 3356265 negative rates
negative rates's picture

When no one claims a dead body, it goes up for auction.

Thu, 03/21/2013 - 08:20 | 3356307 disabledvet
disabledvet's picture

hmmmm. "negative rates." hmmmmm.

Thu, 03/21/2013 - 08:03 | 3356242 Cacete de Ouro
Cacete de Ouro's picture

If they can just keeps the banks closed for 4 more days until the following Monay, then they can re-open on ...wait for it...

Monday 1st April...April Fool's Day....


   4 moar days, 4 moar days!


There's an old saying in Cyprus ... I know it's in Texas, probably in Cyprus... that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again.

Thu, 03/21/2013 - 08:05 | 3356248 falak pema
falak pema's picture


Solution 1° Bend over to Putin and say its all yours GAzprom and MIC, you can have your port!

Solution 2° Fucka you EU; we die like the Spartans and we leave Athens to you imperial barbarians. This is the worst 'soulution' as they get deep shoved by Russians, EUrocrats and markets. Total destitution.

Solution 3° Ok Mutti you win and some of us will die bravely with the fishes when the Ruski Mafia hits us! But we save our people even if it means we are slaves for twenty years.

I don't see any other issue than these.

Morality : never sell your souls to the banksta clique but that is the world's problem not just Cyprus's. The irony is that Cyrpus has a dynamic economy, its their banks that are quacky ducks mired in toxicity.


Thu, 03/21/2013 - 08:06 | 3356255 swissaustrian
swissaustrian's picture

2. is unlikely, because nobody in the political class gains.

Thu, 03/21/2013 - 08:19 | 3356306 falak pema
falak pema's picture

Whatever the issue I don't see this local banksta paradise rising from its ashes for a long time! 

Is there a lesson there worldwide for other tax havens, in the aftermath of this mega standoff in the making between statist oligarchs who want to tax bank stakeholder deposits  (one off, lol ) at source, on ad hoc basis and the markets who prefer to see the bank festering debt holes being "socialised" via QE infinity plays like in FEC/BOE/BOJ and subsequent currency debasement?

This is now going to be moot question; which route to go as to get resolution in this 12th hour you have to fleece the sheeple one way or the other, and then hope that the resulting market reset will not bring us to total rock bottom! 

Imagine other financial centers of banksta money like Singapore or Swiss land if fiat burns and leverage plays go belly up?

The statists and the private wealth markets, if they tear each other apart in their kleptocratic hubris, they make their own cake go sour like the Gulf of Mexico, in Deepwater Horizon style! 


Thu, 03/21/2013 - 08:23 | 3356320 disabledvet
disabledvet's picture

"Cayman Islands=Ponzi Scheme." the arrested "the man from Texas" and charged and convicted him of said offense. "anyone asking for a do-over yet?"

Thu, 03/21/2013 - 08:12 | 3356279 negative rates
negative rates's picture

To think that fishin would lead to banks that are quacky ducks mired in toxicity is almost unthinkable to me.

Thu, 03/21/2013 - 08:25 | 3356326 The Heart
The Heart's picture

"its their banks that are quacky ducks mired in toxicity."

Good works.

Ya know how those banksters always have insider information and seem to know for the most part what is going to happen. Well, how's this for the plan to move forward?

“I expect that there will be a support program for Cypriot economy by Monday,” said Panicos Demetriades after talks with President Nicos Anastasiades on Thursday."

"The Cypriot government and opposition parties are examining the creation of a wealth fund consisting of state assets, church property and social security fund reserves in a bid to negate the need for a deposit tax or to allow the levy to be set at lower levels than the original plan agreed by the Eurogroup."

Cyprus central banker Demetriades sees solution in Nicosia by Monday:

And another new twist is now the Russians are thinking about pulling out of the euro before everyone else does. A most interesting new card that could be played in the game of, bankster wars!

Russia may rethink euro in reserves after Cyprus, Medvedev says:

Lots of suspense in this movie. Is there an intermission?


Thu, 03/21/2013 - 09:35 | 3356625 skipjack
skipjack's picture

No intermission.  Bank runs commence as soon as the banks re-open.

Thu, 03/21/2013 - 08:34 | 3356349 keep the bastar...
keep the bastards honest's picture

Agree re your positves re Cyprus. If its not Putin its NATO as a front for the US.  Cyprus welcomed the russians, dont think it welcomed the brits or now what NATO wants and US wants (non constituional) which is being pushed. Nor the 70% haircut given to Cyrprus  bondholders of of greek bonds which started this mess (as some see it)... odd no haircut was given to Ireland by the US UK or Germany. 

Thu, 03/21/2013 - 08:18 | 3356261 Quinvarius
Quinvarius's picture

At this point, it is blame shifting.  The collapse is coming.  The ECB, who caused this boondoggle, needs to make it look like it is Cyprus' choice.  Those banks just can't open without a total recap of printed money or they will be put out of business with bank runs.  They are like those people who had their bodies frozen after death so they could be thawed out when a cure for their problem is discovered.  But we are going to thaw them out on Tuesday and see what happens.

This whole incident has me wondering if the decision to pull the plug on the entire global mess has not been made.  Unsustainability and peak ponzi have been reached.  And now it is time to make the real wealth knocking it all down.

Thu, 03/21/2013 - 08:36 | 3356355 Ghordius
Ghordius's picture

did the ECB really cause this "boondoggle"? I remember faintly the Vampire Squid "advising" Greece to do Enron-style accounting with JPM derivatives, which led to the Greek Bond debacle, which leads us now to the Cypriot Situation. perhaps my memory fails me

meanwhile Cyprus is this week still on the ECB/ELA drip, and you can at least buy groceries on Cyprus with that trickle of EUR cash out of the ATMs - would you if they had still a Cypriot Pound?

Thu, 03/21/2013 - 09:07 | 3356477 morning
morning's picture


Thu, 03/21/2013 - 08:07 | 3356262 Bobbyrib
Bobbyrib's picture

After Cyprus, it still has P,I,I,G,S, and finally F to try to institute another wealth tax on bank deposits.

It won't be a big deal if Cyprus' banking system collapses and they have to exit the EU. /sarcasm.

Thu, 03/21/2013 - 08:10 | 3356270 ZeroPoint
ZeroPoint's picture

I wonder if Checkpoint Charlie is going to suddenly be staffed again. Russia probably is not going to respond well to having retired oligarchs lose huge sums.


Thu, 03/21/2013 - 09:31 | 3356616 Tango in the Blight
Tango in the Blight's picture

Checkpoint Charlie is in the middle of Berlin which lies in unified Germany.

It is staffed already, with chicks wearing Red Army uniforms who let you have your photo taken with them 1 euro.


Thu, 03/21/2013 - 08:10 | 3356274 TNTARG
TNTARG's picture

My guess is Putin getting control of Zone 12's Gas/Oil, South of Cyprus.

Lot of interests at stake here, many involved, as Turkey, Israel, Russia, Egypt.

I presume banks are gonna open with enough liquidity and  new deals after forced holidays.

Just a feeling.

Thu, 03/21/2013 - 08:42 | 3356365 keep the bastar...
keep the bastards honest's picture

Do you really mean Israel or the true owners, Palestine? what about Lebanon and Syria? And NATO? ( US default)?

Russia has invested in Cypriot exploration and drilling programns. The rest of the scumbags have the Caymans ( Madoff?) and Luxembourge and  Switzeland... Goodluck to the russians..

Thu, 03/21/2013 - 08:11 | 3356277 Catullus
Catullus's picture

A CB that doesn't provide liquidity when needed is worthless. Why bother?

If the country had real thought leaders, they'd peg to gold or silver and completely call the ECB bluff.

Thu, 03/21/2013 - 08:46 | 3356371 Ghordius
Ghordius's picture

a small country pegging to gold or silver? and the huge rallying cry you'd hear that "competitive edge" gets lost? as long as King Dollar reigns supreme and is driven this way in this currency war you would have to close your borders if you really want to do that

nope, if I produce tomatoes thanks to leveraged capital in fiat currency I beat any foreigner producing tomatoes thanks to capital in gold where it hurts: price

at least at this stage of the currency war

Thu, 03/21/2013 - 08:13 | 3356281 IamtheREALmario
IamtheREALmario's picture

Isn't Merkel, like Obummer, a communist wunderkind? I thought I read something about them both tiptoing naked through the Urals at the Joe Stalin Summer Camp for Progressive Revolutionaries. If that is the case, the whole thing is a show to intentionally start the glorious communist global revolution by giving Cyprus to Russia.

"We've been had, Hawkeye?"

Thu, 03/21/2013 - 08:15 | 3356291 new game
new game's picture

money is the new bullets of the 21st...

Thu, 03/21/2013 - 08:17 | 3356297 sudzee
sudzee's picture

Will depositors get their savings back in Euros, rubles or pounds?

Thu, 03/21/2013 - 08:18 | 3356300 new game
new game's picture

gimmie back my bullets

Thu, 03/21/2013 - 08:21 | 3356311 MaxThrust
MaxThrust's picture

If the Cypriots are really smart they should agree to the tax. Wait for the banks to open and then extract all their remaining savings. After which the banks will close for good. This way  at least they will get the majority of their life savings out of harms way.


Thu, 03/21/2013 - 08:53 | 3356402 j0nx
j0nx's picture

The depositors aint getting shit out of those banks when they open. The only thing in those accounts are binary digits with nothing to back them up. Capital controls will be in full effect when those banks open. The only thing that remains to be seen is how the populace takes to being told they can only withdraw $250 a week for the next 6 months. I know that Americans wouldn't take it too well but I have lost all faith in people sticking their pitchforks up the asses of the PTB.

Thu, 03/21/2013 - 09:17 | 3356549 spine001
spine001's picture

Capital controls will be in full effect when those banks open. The only thing that remains to be seen is how the populace takes to being told they can only withdraw $250 a week for the next 6 months


You can see what will happen by using Google translate read Argentinian news from the time this same thing happened to them, they were not allowed to take their money from the banks. They key word to use was CORRALITO ... You will see plenty of mobs, pitch forks, pots and pans, etc. it created a movement that lasts up to the day of today. They have lawsuitd with Hedge funds that have lasted more than 10 years. They are still fighting...

Oh the hedge funds are the ones that bought their debt for cents on the dollar and now are suing for full value of the bonds.

Until next time,


Thu, 03/21/2013 - 09:12 | 3356518 spine001
spine001's picture

"If the Cypriots are really smart they should agree to the tax. Wait for the banks to open and then extract all their remaining savings."

Translate your comment with Google translate. Start a facebook site and propose it to the Cypriots... They may go for it... Who knows... It´s a startingly good idea if social media could be used to build up the agreement before hand... Then they can go back to the pound

Thu, 03/21/2013 - 08:22 | 3356316 22winmag
22winmag's picture

Ultimatums, damned ultimatums, and statistics.


Bet Russia comes out on top!

Thu, 03/21/2013 - 08:41 | 3356364 The Heart
The Heart's picture

"Ultimatums, damned ultimatums, and statistics."

Euros...bluffs...waiting games...suspense...cigars...cigarettes...Tipperellos?

Thu, 03/21/2013 - 08:24 | 3356323 CustomersMan
CustomersMan's picture


If Cyprus is denied the bailout and the banks try to reopen and the bank-run ensues and the system collapses, it will be a visual lesson for the world on just how the "Fractional Reserve" system really works. Those that don't know will instantly get a lesson that shows them their money in the banks around the world "isn't there". And this lesson will be played out in real-time with real people getting screwed by the banking system. There are probably many around the world that will finally see the banking scam for what it is.

Thu, 03/21/2013 - 09:07 | 3356476 keep the bastar...
keep the bastards honest's picture

It is not in cyprus' interest to get a baiiout, the whole lot has been engineered by the 70% haircut to greek bondholders. Iceland  has done really well, Ireland has been screwed or shafted again and again.

Thu, 03/21/2013 - 11:03 | 3357121 Bangin7GramRocks
Bangin7GramRocks's picture

C'mon man! Don't you know the conservative talking point "American Exceptionalism"? 95% of Americans will believe that can never happen in the U.S. up until and including the day that it does.

Thu, 03/21/2013 - 08:27 | 3356332 Diablo
Diablo's picture

FYI: March 25th is Greek independance day (beginning of revolution against Turks).



Thu, 03/21/2013 - 08:28 | 3356333 Peter Pan
Peter Pan's picture

The Europeans are banking on the Russians actually copping the 15% haircut rather than avoiding a haircut and instead finding their euros been converted to cypriot pounds of at least short term questionability.

Thu, 03/21/2013 - 08:29 | 3356335 Oligarch
Oligarch's picture

Just say Nein and leave the f* euro.

Thu, 03/21/2013 - 08:38 | 3356358 Byte Me
Byte Me's picture

Better still,

Leave the €uro.

Stay in the EU

Join NATO yesterday.

Thu, 03/21/2013 - 09:02 | 3356455 Ghordius
Ghordius's picture

and the two Cypriot banks? let them fail? leaving the EUR does not change that

Thu, 03/21/2013 - 08:40 | 3356362 tradewithdave
tradewithdave's picture

Don't mix oranges, bacon and jogging shoes.

Thu, 03/21/2013 - 08:49 | 3356383 Fix It Again Timmy
Fix It Again Timmy's picture

They're just jockeying around to see who goes first playing Russian Roulette with a semi-auto pistol....

Thu, 03/21/2013 - 09:08 | 3356487 monopoly
monopoly's picture

It is truly amazing how little press Cyprus is given all over the MSM. Even I am shocked. At times something that smolders just below the surface for a while is something to be concerned about. Often investors ignore what is right in front of them as long as they can, move on to other subjects and keep the false air of "all is well" moving along. Then at some point, the "whale" rises to the surface and takes out everything in its path. We saw this in 2008, when mortgage loans started to default, first sub-prime, than moving to prime loans. Our omnipotent govt. told us all was well and "it is contained." Nothing to worry about here. Well, we all  know how that worked out.

Now, they are saying the same thing...again. Cyprus is too small. Not even a million people. Just a few banks in trouble. It will all work out. So the sheeples believe this and keep buying "yoga pants" and "new cars". Well, I am not so sure. And I am prepared as are many here. Sometimes we ignore what is right in front of us, hoping it will fade away.

Thu, 03/21/2013 - 09:24 | 3356582 spine001
spine001's picture

I am not surprised, remember Fukushima? Four nuclear meltdowns and the MSM was barely reporting it...

Now we have the oceans of the world contaminated with Cesium and they don´t even talk about it...

If they can hide that, imagine what they can hide relating financial matters...

Our financial system is a Ponzi scheme and now that they have run out of fools to feed it, the CBs of the world are doing that. Cyprus is just pissing them off because the Russians and Britons are using it to extract more than their fare share of the proceeds of the Ponzi and they want to stop them.

I say: "Good Luck"

Until next time,



Thu, 03/21/2013 - 09:46 | 3356689 ISEEIT
ISEEIT's picture

JHC...Could you just imagine ZH as a fourth estate??? 'news' papers would still be something considered as being worth the time spent exposing oneself to considering as a well spent investment of time.

Thu, 03/21/2013 - 09:50 | 3356705 ISEEIT
ISEEIT's picture

And so now back to the 'real' news.

How's this hole baracks grand jewish adventure thingy werkin' out?

Thu, 03/21/2013 - 09:57 | 3356743 q99x2
q99x2's picture

Tell Putin that if he makes Italy an offer they'll make him pizza and a new suit.

Thu, 03/21/2013 - 10:04 | 3356785 ISEEIT
ISEEIT's picture

So whadda ya think about Emma Watson and the 50 shades of grey thingy?

Thu, 03/21/2013 - 15:51 | 3358869 robertocarlos
robertocarlos's picture

I like her but I don't know how to pronounce her name.

Thu, 03/21/2013 - 10:14 | 3356833 Flammonde
Flammonde's picture

One wonders if the EU project is not entirely something other than advertised.  And one wonder si the leaders of the EU, like Frau Merkel for instance, are not also undertaking an operation for the Eurozone that too is not quite as advertised.

Like so many things in the Chancellor’s life ‘history’, despite the air-brushing employed by those around her, former Osti Merkel appears to have been a very active supporter of Erich Hoeneker’s Communist DDR….as The Slog reported some weeks ago.

The problem for Geli is that the 72-year old Gauck was a leading (and very influential) dissident pastor in the DDR. Angela Merkel’s father the late Horst Kasner was also a DDR pastor….however, he was anything but dissident. He chose to join the DDR in the 1950s (although living at the time in the West). Several former Ostis have openly accused him of being a Stasi agent.

Here’s the additional tricky bit for the German Chancellor: post-unification, Joachim Gauck was put in charge of investigating the Stasi archives during the 1990s. There is probably no-one better placed – both pre and post unification – to know about Merkel’s activities under the Communist regime. He would certainly, through his role in the protestant church, have known all about Pastor Kasner and his daughter Angela. And what he didn’t know from that would anyway have been available to him as the man in charge of the Stasi archives.

Merkel has always maintained that her role in the DDR’s Youth Movement was a minor one involving the organisation of social engagements. But people who were there say the good Frau Doktor is being modest: she was actually the Movement’s head of Propaganda…..and a hardline Stalinist disciplinarian.

And then the EU itself is a bit questionable- Former Soviet Dissident Warns For EU Dictatorship | The Brussels ... 

Feb 27, 2006 – Mr Bukovsky paid a visit to the European Parliament on Thursday at the ... Bukovsky twenty years ago, in 1986, when the Soviet Union, the first ...
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Thu, 03/21/2013 - 13:28 | 3357965 WallowaMountainMan
WallowaMountainMan's picture

'Will the ECB really be so stupid as to force the Cypriot bluff?'

agreed. how can they?

how can they not.

i think it goes back to their fundamental error: thinking the president of cyprus could deliver what he demanded he wanted. that is, saving some bucks for the over 100k crowd by breaking the insurance under limit of 100k. had he delivered, all this would have gone backpage and the facade continued.

sure, there would have been some chatter about confiscation etc on the 'fringe'  but 'oddly' accurate blogs led by the finest one of all zh., but msm would have moved on to the bernak meeting etc.

having accepted an the pres' ultimatum, rather than finding out how the votes would have gone, the ecb lost control. had the pres of cyp counted the votes as a test before issuing the under 100k or else ultimatum, then the extra votes either could have been bought, of if not, the original deal the ecb offered could have been accepted and passed by parliament. (no other choices work 'mathimatically. it would preserve the insurance motif for banks, the most critical aspect of faith)

the pres of cyp committing the ultimate error of one who goes all in ahead of the big stack, that is, not actually looking at his cards/votes. ecb will 'win', and retain power for the money.

eventually, sooner, the pres of cyp and his 19 abstainers will have converted enough of the 36 to get to the original deal (staggered, my guess) and what ever would have happened in the first place, good banks, bad banks, unemployment that really wasn't productive (i.e. non traditional banking), whatever...

as one who would love to see the tbtf die, perhaps... perhaps...thanks to zh and others, msm will start to value the lives of their children and their children over brown nosing with the 1%.

revolutions rarely come from other than the people. a non violent revolution is still possible. die tbtf die!

just my thoughts...



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