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Euro Official On Cyprus: "Markets Believe We Will Find A Solution, This Might Not Be The Case"

Tyler Durden's picture


While the market levitation courtesy of the Fed, BIS and BOJ continues unabated to give the impression that all is well, allowing empty momentum-chasing chatterboxes to say that Cyprus is not a big deal because... well, look at the market (and real traders the chance to quietly dump existing risk positions), the artificial, centrally-planned calm during the storm may be ending. The reason comes from none other than the Eurogroup, whose deputy finance ministers held a conference call last night, and whose transcript has been seen by Reuters.

Here are the highlights.

Euro zone finance officials acknowledged being "in a mess" over Cyprus during a conference call on Wednesday and discussed imposing capital controls to insulate the region from a possible collapse of the Cypriot economy.

Not very confidence boosting. But then again, with confidence in Cyprus now gone, the time for damage control is long gone. Sure enough, it just goes from bad to worse:

"The (Cypriot) parliament is obviously too emotional and will not decide on anything, if Cyprus does not even feel that they can attend the call it is a big problem for us," the French representative said, according to the notes seen by Reuters.


"We have never seen this."

"Ring-fencing" is back, and so are Lehman references.

The official also referred to the need to resolve Cyprus's two biggest banks, both of which are close to collapse, and mentioned the possibility of Cyprus leaving the euro zone.


In the event of an exit, the official said steps needed to be taken to "ring-fence" the rest of the euro zone from the impact and to ensure there was no contagion to Greece.

Bad news for locals: your economy is done, so may as well drag the entire Eurozone down with you:

"The economy is going to tank in Cyprus no matter what," the notes quoted him as saying. "Restrictions on capital will probably be imposed," he said, adding that further conference calls would be organised in the coming days.

And the punchline:

"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

Hint to those confused: the market is not at all ignoring Cyprus. The central banks manipulating the market are doing their best to make it seem the market is not affected by a development which not even politicians have any idea how to negate as everything is now in unchartered territory. Of course, if and when control of the market is lost, that's when things get really interest.


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Thu, 03/21/2013 - 09:07 | 3356471 LawsofPhysics
LawsofPhysics's picture

Stop it.  There is no fucking "market" for true price discovery.  That is the whole problem.  Worthless fucks in stuffed shirts trying to maintain power and control through counterfeiting, period.

Thu, 03/21/2013 - 09:08 | 3356486 old naughty
old naughty's picture

chain all exits !

Thu, 03/21/2013 - 09:08 | 3356488 Stackers
Stackers's picture

Smoked Swan on the menu for next week ?

Thu, 03/21/2013 - 09:11 | 3356494 Cult_of_Reason
Cult_of_Reason's picture

This could be the reason Russian government must bail-out Cyprus.


He presented documents alleging that five Cypriot banks had received money from a Russian "criminal gang" linked with high ranking officials in Russia’s spy agency and interior ministry. In December, as Cyprus was in tough bailout talks with its European neighbours, it said it had launched an investigation.

By that time Browder had extended his campaign to alert lawmakers in the Netherlands, Finland and Europe’s economic powerhouse, Germany, that Cyprus had stonewalled on the case.

Thu, 03/21/2013 - 09:12 | 3356508 LawsofPhysics
LawsofPhysics's picture

The truth is always stranger and more complicated than any fiction.  No surprise, life is complex.  Gonna be fun to see what happens when the crisis gets to the Cayman Islands.

Thu, 03/21/2013 - 09:14 | 3356527 The Juggernaut
The Juggernaut's picture

Cyprus should get the balls and just say, "I'm out this stupid fucking Euro."  You can't fire me!  I quit!

Thu, 03/21/2013 - 09:15 | 3356536 Ghordius
Ghordius's picture

and the two banks? people on the Cypriot streets won't be thankful if they fail

Thu, 03/21/2013 - 09:19 | 3356559 Cdad
Cdad's picture

Return to top, see 1st comment in thread.

Thu, 03/21/2013 - 09:33 | 3356594 The Juggernaut
The Juggernaut's picture

@ Ghordius: Yes they will.  The Cyp's will be financially free from EU's, ECB's and IMF's blackmail.  Its EXACTLY how a mafia runs its rackets.


Cyp should then get Russian air-force flying around just to make sure everything goes off smoothly.  Add a China Chengdu J-20 and Type 056 stealth frigate in that for good measure so every knows to fuck off with re-payments.  The deal is off, fuckers.

Thu, 03/21/2013 - 09:41 | 3356657 NoDebt
NoDebt's picture

I'm not so sure.  Might be Germany is about to cave (again) and just send the money.  That's how these things have always gone in the past.  Push it to the edge, pull it back over the next weekend.

Sounds crazy, I know, but it sounded crazy every other time and it still happened. 

Thu, 03/21/2013 - 09:43 | 3356670 fonzannoon
fonzannoon's picture

I thought it's too late for that. Germany sends money. Problem solved. Banks open, massive bank run, problem unsolved. Right?

Thu, 03/21/2013 - 10:06 | 3356795 disabledvet
disabledvet's picture

"seashells BITCHEZ." this is not a "fiction" created by the puny ECB...this is a hit "generated by Governments." Go up Wall Street. "don't no forget to take a number." The French are in charge this and they demand you "state your business" then "take off your clothes."

Thu, 03/21/2013 - 10:34 | 3356888 Spirit Of Truth
Spirit Of Truth's picture

I'm just shocked that any EU bank be held accountable.  Central Banks usually just change the rules of the game when there's trouble, so why not set Cypriot bank capital reserve requirements to zero? Problem solved! It's called "Creative Regulatory Accounting Principles" (CRAP) and has been a key part of the Central Bank Ponzi scheme to keep the illusion of solvency alive all along in the fundamentally flawed system of reserve banking.

Thu, 03/21/2013 - 10:47 | 3357037 Bastiat
Bastiat's picture

CRAP- good one!

Thu, 03/21/2013 - 11:02 | 3357114 Matt
Matt's picture

Negative reserve requirements? You are allowed to have negative 50% of the assets equal to your liabilities?

Thu, 03/21/2013 - 10:11 | 3356814 I am more equal...
I am more equal than others's picture

Central Bankers believe they will make their solution reality but reality is ready with the pimp hand to bitch slap that back down.  Get up bitch and I'll give you some more. 

Thu, 03/21/2013 - 10:17 | 3356844 fonestar
fonestar's picture

and when things get really, really bad you have to tell.... (gasp!) THE TRUTH??

Thu, 03/21/2013 - 13:46 | 3358090 Fish Gone Bad
Fish Gone Bad's picture

Money will magically appear from The Fed.  They make the stuff up anyway, does ANYONE really think this problem can not be solved by money from The Fed?

Thu, 03/21/2013 - 09:21 | 3356571 DavidC
DavidC's picture

This why there's GOING to be a run on the Cyprus banks. And then Spain, and then France...


Thu, 03/21/2013 - 09:33 | 3356578 LawsofPhysics
LawsofPhysics's picture

We went through this yesterday Ghordius, you really want to go through it again, see my first comment.  They made their fucking bed, the "wealth" isn't real fuck em.  Once again, consequences motherfucker.  That is how a real market is supposed to work.  If your risk/choice pays off, good for you.  If not, it's your fucking problem, not mine.  Yes, I can be compassionate, but again, that is my choice to make, not yours.  

Thu, 03/21/2013 - 09:54 | 3356727 flacon
flacon's picture

Excellent post! I'm glad there are people on this planet like you. 

Thu, 03/21/2013 - 09:57 | 3356741 fonzannoon
fonzannoon's picture

Me too, I look forward to a warm embrace from LOP when I come flying out of the city into the country when TSHTF lol.

Thu, 03/21/2013 - 10:23 | 3356876 resurger
resurger's picture

I wont join you, ill be dead fighting.

Announce my name when am dead, thnx

Thu, 03/21/2013 - 11:39 | 3357310 Panafrican Funk...
Panafrican Funktron Robot's picture

As a "small trader" who lost his shit big time (and suffered the resultant consequences), I agree.  I gambled in the rigged casino and lost.  I don't blame anyone other than me for this.  Would appreciate supposed "big timers" like Jamie Dimon taking his licks for making stupid fucking decisions too.  

Thu, 03/21/2013 - 11:42 | 3357336 Panafrican Funk...
Panafrican Funktron Robot's picture

Then again, we all know Dimon has no balls.  He's not man enough to hold himself accountable.  And that's the problem.  The people "running this shit" are really just a bunch of fucking pussies.


Thu, 03/21/2013 - 11:51 | 3357397 Ghordius
Ghordius's picture

I'm not arguing against your principled, rules-based argument, or the principled, rules-based arguments of the Finns, Dutch and Germans who say that if they are going to put tax-payer money on the line in order to save those two giant-for-this-little-country banks, then they won't be the only ones and want a Cypriot participation

I'm only arguing against the assumption that a bankrupcy of those two financial institutions that suffered from the intervention on Greece - for which we have to thank the Vampire Squid when it Enronized the Greek books with derivatives what the majority of the Cypriot want

Thu, 03/21/2013 - 10:00 | 3356758 Croesus
Croesus's picture

Long Bulldozers!

Thu, 03/21/2013 - 09:28 | 3356608 ebworthen
ebworthen's picture

Wouldn't it be something if the Cyprus banks announced that depositors could get their money in Rubles as of the exchange rate with the Euro last Friday and the government announced they were switching to the Ruble?

Thu, 03/21/2013 - 09:57 | 3356725 Awakened Sheeple
Awakened Sheeple's picture


Thu, 03/21/2013 - 10:39 | 3356993 Svendblaaskaeg
Svendblaaskaeg's picture

you got a point there

Thu, 03/21/2013 - 09:57 | 3356745 asteroids
asteroids's picture

Greeks have "OXI" day. Greece was attacked by Germany/Italy and entered WWII  after they were given an ultimatum. The Greeks said "NO", basically telling the Germans to fuck off. Cyprus is having their moment.

Thu, 03/21/2013 - 09:19 | 3356556 Cult_of_Reason
Thu, 03/21/2013 - 10:06 | 3356801 Rustysilver
Rustysilver's picture


Funny that all of "money center" and tax havens have some residual British culture.

Thu, 03/21/2013 - 10:24 | 3356883 sunnydays
sunnydays's picture

Russian PM Medvedev is upset.  He berated the EU chief and said Moscow was not given a warning of the levy.   He told the EU chief, Russia will reduce it's Euro holdings and go to gold from what another source said.   

The people in Europe need to get smart fast and get their money into gold and silver.  The time might have now arrived for "To the Moon Alice - To the Moon"

Thu, 03/21/2013 - 09:55 | 3356729 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Markets believe we will find a solution"?!!!

At this stage of the game, I can't picture anyone, even these mythical entities known as "markets", believing that the EuroGroup, EuroZone, European Council, European Commission, European Parliament, European Central Bank, or any other bureaucratic apparition of the EuroClusterfuck could find a solution to anything.

Thu, 03/21/2013 - 09:55 | 3356734 NoTTD
NoTTD's picture

Blackened Swan.

Thu, 03/21/2013 - 10:01 | 3356760 HardlyZero
HardlyZero's picture

Crispy Duck.

Thu, 03/21/2013 - 09:09 | 3356491 GetZeeGold
GetZeeGold's picture



Pull the trigger.....they double dog dare you.

Thu, 03/21/2013 - 09:09 | 3356495 LawsofPhysics
LawsofPhysics's picture

All forms of money are simply medians of exchange.  When a form becomes corrupt/fraudulent get the fuck out of it, period.

Thu, 03/21/2013 - 09:14 | 3356530 Ghordius
Ghordius's picture

+1 reminds me of a friend that said: children's medium of exchange is a smile - as soon as they stop being cute it does not work anymore and you throw them out of the house ;-)

Thu, 03/21/2013 - 10:21 | 3356864 Ricky Bobby
Ricky Bobby's picture

Eurocrat medium of exchange - LIES - now the lies don't work anymore so throw the Euro on the scrapheap of history.

Thu, 03/21/2013 - 11:07 | 3357140 Lord Blankcheck
Lord Blankcheck's picture

The Governing system is what corrupts.No matter what is use as money,including gold.

Thu, 03/21/2013 - 09:14 | 3356526 SheepDog-One
SheepDog-One's picture

Ring fences being erected topped with razor concentration camp-esque.

Thu, 03/21/2013 - 09:27 | 3356602 Cdad
Cdad's picture

Now...if we could just get the Euro bankers to step through the gate.  Maybe put a pile of Euro dollars in the center of the "camp site."  

Thu, 03/21/2013 - 09:39 | 3356645 kliguy38
kliguy38's picture

Everyone remain calm and please exit to the that first step.....its a dooooozy

Thu, 03/21/2013 - 09:45 | 3356683 resurger
resurger's picture

+ solder


Thu, 03/21/2013 - 09:09 | 3356493 bentaxle
bentaxle's picture

Bullish! wait

Thu, 03/21/2013 - 09:22 | 3356573 slaughterer
slaughterer's picture

BTFCD = Buy The Fuckin' Cyprus Dip

Tatoo on gf ass if necessary

Thu, 03/21/2013 - 09:49 | 3356703 resurger
resurger's picture

god forbid a small news of postive news comes out on Cyprus, the ALGOS will burn all Stop/loss and push the DOW to 15K in 3 days.


Thu, 03/21/2013 - 09:44 | 3356674 hawk nation
hawk nation's picture

I really think the end of this ponzi scheme is just about over. I dont think the powers that be will be able to contain the demand for physical precious metals and they are ready to go to their next planned scheme for NWO 

Thu, 03/21/2013 - 09:07 | 3356478 the 300000000th...
the 300000000th percent's picture

Damn muppets not doing as they are told!!!!

Thu, 03/21/2013 - 09:28 | 3356607 Whoa Dammit
Whoa Dammit's picture

Yeah, Keep them and their banks in time out. That'll teach 'em !!! /s

Thu, 03/21/2013 - 09:07 | 3356481 unrulian
unrulian's picture

Ring fencing...FEMA style

Thu, 03/21/2013 - 09:26 | 3356599 JOYFUL
JOYFUL's picture

ain't that the truth!...

...the French representative said, according to the notes seen by Reuters.

 Reuters is pure moneypower megaphone...there's nothing in their stuff that isn't smoke and mirrors.

It is possible that even the Tyler's haven't got caught up yet?  Control was lost some time ago; we're just watching the death throes now...while Obummer's lining up his asylum deal...Mission Accomplished! Cue drones n armored personnel carriers.

Thu, 03/21/2013 - 09:38 | 3356634 machineh
machineh's picture


"Do I look like Big Government to you?"

Thu, 03/21/2013 - 09:07 | 3356482 Caveman93
Caveman93's picture

"We have never seen this.".....ever? LULZ!

Thu, 03/21/2013 - 10:13 | 3356831 SheepDog-One
SheepDog-One's picture

They have never seen an insolvent bank rob its depositors before? Somehow, I'm just not buyin their story!

Thu, 03/21/2013 - 10:19 | 3356854 Super Broccoli
Super Broccoli's picture

... just looks like another PIIGS to me. The new thing is they wouldn't bend over :)

Thu, 03/21/2013 - 11:13 | 3357163 JimBowie1958
JimBowie1958's picture

The essence of a black swan event, isnt it?

So the people at the rudder wheel have never seen the likes of the iceberg just ahead.

Doesnt fill me with optimism.

Thu, 03/21/2013 - 09:07 | 3356483 Ivanovich
Ivanovich's picture

If it's one thing I've realized after watching 5 years or so of dog and pony shows, it's that they will figure out a way to keep the charade going.

Thu, 03/21/2013 - 09:27 | 3356601 uranian
uranian's picture

The only reason I can see that the ECB won't just bail them out is if they want to provoke a bank run. The guys running this are not stupid (the politicians do a good job of appearing so, I agree, and perhaps some of them genuinely are, but those behind the politicians are anything but stupid). I wonder if they're trying to provoke a war with Russia; there are pictures of queues at Cypriot ATMs now, and keeping the banks closed for days more pretty much guarantees a run on deposits when/if they do re-open. I wonder if the charade is about to end, as there doesn't seem to be any solution to this which doesn't end in a run on Cypriot banks, then the Euro.

Thu, 03/21/2013 - 10:14 | 3356837 ArkansasAngie
ArkansasAngie's picture

There is ... enforce the rule of law and dismantle these banks from the top down -- not the bottom up.  They don't like that because that puts their money and power and control as the first to get hit.

Thu, 03/21/2013 - 11:14 | 3357166 JimBowie1958
JimBowie1958's picture

If it's one thing I've realized after watching 5 years or so of dog and pony shows, it's that they will figure out a way to keep the charade going.

Until they dont.

Thu, 03/21/2013 - 09:09 | 3356492 ThunderingTurd
ThunderingTurd's picture

I loathe Jim Cramer

Thu, 03/21/2013 - 09:39 | 3356644 machineh
machineh's picture

It is so over, when they give Beelzebub a live TV show.

Flames of hell, bItCHeZ.

Thu, 03/21/2013 - 09:10 | 3356496 fonzannoon
fonzannoon's picture

Someone posted this yesterday. It is worth another look. Please come out and take a bow whoever it was.

PS. The assistant in this story is CNBS

Once upon a time a man told a small village, “I will buy monkeys for $10 each.”

Since there were many monkeys in the forest, the villagers caught them and sold them to the man.

As the supply of monkeys diminished, the villagers’ efforts slowed, so the man offered them $20 each.

They renewed their efforts but the supply of monkeys diminished further, so he increased his price to $25.

Soon no one could even find a monkey in the forest.

The man increased his price to $50, but announced, “Since I must go to the city on business, I authorize my assistant to buy monkeys on my behalf.”

As soon as his boss was gone, the assistant told the villagers, “My boss has collected lots of monkeys. I’ll sell them to you for $35 and then, when he returns, you can sell them to him for $50.”

The villagers rounded up all the money they could and bought as many monkeys as possible. Then they had monkeys everywhere…

… but they never saw the man or his assistant again."

Thu, 03/21/2013 - 09:16 | 3356540 machineh
machineh's picture

The boss was Greenspan.

His assistant was Bernanke.

Have a nice day!

Thu, 03/21/2013 - 09:10 | 3356497 buzzsaw99
buzzsaw99's picture

Earth to Euro officials: :YAWN!:

Thu, 03/21/2013 - 09:10 | 3356498 GrinandBearit
GrinandBearit's picture

Many also believe that they will hit the powerball lottery.

Thu, 03/21/2013 - 10:25 | 3356885 BeaverFever
BeaverFever's picture

I'm going to forget that I read this.

Thu, 03/21/2013 - 09:10 | 3356500 jeebus
jeebus's picture

"Ring-fence"?! Hahahahah. I'm cautiously optimistic that we see some fireworks soon. 


Bitcoin $500 anyone?!

Thu, 03/21/2013 - 09:14 | 3356512 JustObserving
JustObserving's picture

and silver $200.  Get some real money before it's gone.

One good panic is all we need

Thu, 03/21/2013 - 09:17 | 3356550 Boston
Boston's picture

If the shit hits the fan, there's a chance silver first hits $20 and later starts its move toward $200.

Be prepared to buy on this dip, should it happen.....

Thu, 03/21/2013 - 09:11 | 3356506 pods
pods's picture

idk, if Cyprus has all that gas, why not just tell the EU to DIAF and be done with it?

No doubt the EU knows that some CDS (held by GS) will be triggered if Cyprus says Nein to more public bailouts of banks?

Play hardball.  Tell the Russian depositors that they will be made whole, use the gas to do so, and watch the EU burn or blink.  

If you owe the bank $100, it is your problem. If you owe the banks more Euros than you can come up with, and you know there are CDS contracts ready to implode either Europe or the whole CDS scheme, it is someone else's problem.


Thu, 03/21/2013 - 09:13 | 3356524 LawsofPhysics
LawsofPhysics's picture

Indeed, and if you had 8 figures in a bank, you are just plain stupid.

Thu, 03/21/2013 - 09:20 | 3356565 Debugas
Debugas's picture

that gas is in a dispute areas with turkey so it is a very hot potato to take otherwisde russia's gazprom would have taken it long ago

Thu, 03/21/2013 - 09:12 | 3356509 sandiegoman
sandiegoman's picture

I love black swan and Cheerios for breakfast!

Thu, 03/21/2013 - 09:59 | 3356753 NoTTD
NoTTD's picture

Tastes like victory.

Thu, 03/21/2013 - 09:12 | 3356511 fonzannoon
fonzannoon's picture

Each family guy character represents a Primary dealer full of derivatives?

Thu, 03/21/2013 - 09:12 | 3356513 SheepDog-One
SheepDog-One's picture

'All will be well' no doubt until one of these mornings there was another 'overnite run on the banks' and people log into their accounts to see -15%.

Oh well, they certainly can't say no one warned.

Thu, 03/21/2013 - 09:15 | 3356531 GolfHatesMe
GolfHatesMe's picture

Exactly Sheep Dog!  That will also help with the Russian offer

Thu, 03/21/2013 - 09:12 | 3356516 ak_khanna
ak_khanna's picture

What is the solution to a problem whereby governments keep on spending more than they earn for years and finance the deficit by taking loans. Now instead of reducing spending or defaulting on the loans (which were given without due dilegence by lenders), politicians expect the people who have saved money to bear the losses, so that they can keep on enjoying their highly paid jobs and perks. 

The foreign banks and lenders being backed by politicians of bigger and stronger countries and global financial institutions are insisting that the Cyprus banks repay them in full even though this is likely to push the Cyprus economy in recession in the foreseeable future.

Thu, 03/21/2013 - 11:08 | 3357133 falak pema
falak pema's picture

your focus is wrong; its not governments who spend too much which has caused this crisis, its banks who have Fractionally reserved too high on derivative plays and leveraged bet plays in ZIRP funds via shadow banking. Then they, the banks, cracked in 2008 and SOCIALISED ALL THAT DEBT TO  public sector on both sides of the pond thanks to Paulson/Geithner/BEn. 

Forgetting the Greece scam which was Squid balance sheet LYING accounting, all other PIIGS in Eurozone, including Cyprus, are results of private bank profligacy gone mad, in RE and then in sovereigns; the latter issued in panic play by crony government sleight of hand to bail out their Oligarchy friends by taking on bad private debts against new public money printing.

Most of Europe had near Maastricht 60% debt/GDP in 2006/2007! And as for USA/UK/Japan its been private sector shenanigans like nowhere else. Now without growth and with huge debts taken on all government sectors are going belly up.

Thats the time line and thats the crime line...admittedly the governments are now complicit as they did NOT do due diligence against the banksta crime squad in 2009 in EU, when they should have shut down the derivative/leverage pump in EU and told G Brown and City to go swim in the Channel with his banksta Jersey crowd.

Thu, 03/21/2013 - 09:12 | 3356519 toys for tits
toys for tits's picture

Just heard on NPR that the ECB will continue funding Cyprus banks until next Monday unless they take the EZ deal.

What good is funding the banks if they're closed, idiots?

Thu, 03/21/2013 - 09:15 | 3356537 Dr. No
Dr. No's picture

The Execs still need their paychecks. - "suspended with pay" type situation.

Thu, 03/21/2013 - 09:20 | 3356568 ziggy59
ziggy59's picture

Only the peons cant take out their money..
Also, there is more below than the tip of an iceberg

They need to get lots of cash delivered to the banks over the next few days..if they open, people will demand cash.

People have been pretty calm from the medias cash to withdraw when banks open, flashpoint...

Thu, 03/21/2013 - 09:42 | 3356652 Two dogs
Two dogs's picture

When it's gone it's gone (cash on the island).   Nobody outside the island - with even half a brain - would swap ATM-stocking-cash for a book-entry with a Cypriot bank.

Thu, 03/21/2013 - 09:47 | 3356697 BurningFuld
BurningFuld's picture

When the banks open and the first person that can't get their money walks outside and says to the mob waiting in line that there is no more money.......all hell will break loose.

Thu, 03/21/2013 - 10:27 | 3356908 Tango in the Blight
Tango in the Blight's picture

Give me back my tuppence!


Thu, 03/21/2013 - 09:13 | 3356523 1835jackson
1835jackson's picture

Do not under estimate the power of the herd. When masses of people get angry the mob will demand change. People just need to get pissed off enough.

Thu, 03/21/2013 - 09:15 | 3356534 LawsofPhysics
LawsofPhysics's picture

Do not underestimate the power of apathy.  Look at history.  Nothing changes until the supply lines break, then the world goes to war.

Thu, 03/21/2013 - 09:33 | 3356622 ekm
ekm's picture

The difference between you and I is that I see supply chains already broken and system about to implode, whereas you think we're not there yet.

Thu, 03/21/2013 - 09:39 | 3356643 fonzannoon
fonzannoon's picture

ekm can you give an example of a broken supply chain that u see?

 also OT but i'm watching my TV show 2 different gold prices at the same time. one price has been stuck at up $6 exactly for ten mins now. WTF? did they halt trading?

Thu, 03/21/2013 - 10:04 | 3356787 ekm
ekm's picture

Cattle numbers are the lowest since 1950.

Gasoline is too too high.

People have no money.


If you're looking for food riots as example, that would be quite extreme IMO, though you could be right. 

That would mean that USA would be seen same as north korea

Thu, 03/21/2013 - 10:14 | 3356830 fonzannoon
fonzannoon's picture

People are eating horsemeat and drinking watered down liquor, but they are still being fed and not rioting. They may not be able to afford gas and have no money but as LOP points out, those magical cards still work when swiped.

That is an amazing success for TPTB. The supply lines may be stretched, but just enough not to break. That is why what you believe to be imminent, may in fact be a long ways away, if ever coming at all. Just my two cents..

"They don't want well-informed, well-educated people capable of critical thinking. They're not interested in that. That doesn't help them. That's against their interests. They don't want people who are smart enough to sit around the kitchen table and figure out how badly they're getting fucked by a system that threw them overboard 30 fucking years ago.

"You know what they want? Obedient workers. ­People who are just smart enough to run the machines and do the paperwork but just dumb enough to passively accept all these increasingly shittier jobs with the lower pay, the longer hours, reduced benefits, the end of overtime and the vanishing pension that disappears the minute you go to collect it".
Thu, 03/21/2013 - 10:21 | 3356865 ekm
ekm's picture

We can only use logic and make conclusion.

Reality will prove us correct or incorrect.

Thu, 03/21/2013 - 10:25 | 3356890 fonzannoon
fonzannoon's picture

You will be correct. I have no doubt. The thought of permanent financial repression vs imminent collapse causes schizophrenia.

Thu, 03/21/2013 - 11:12 | 3357159 Winston Churchill
Winston Churchill's picture

Both of us agree.Or is that all three of me.

I used to be indecisive and schizophrenic.

Now  we are not so sure.

Thu, 03/21/2013 - 10:40 | 3357008 GCT
GCT's picture

Spot on Fonz.  I do not see supply lines gone either.  SNAP and other programs are keeping the sheeple from stampeding.  The only time we will actually have riots is when those sucking on the teat or those working cannot pay for basic necessities. 

Otherwise the media tells them everything is ok, it is great to be unemployed go find yourself and take that vacation you so wanted to take while you look for employment, nothing is wrong with the economy and it is just slow.  Great unemployment numbers coming out of the media although full time work is now being coverted to part time work.  Housing is on the rebound!, until you look at a long term chart. Inflation is nothing to be concerned about !  Even though our fuel prices went from 1.89 a gallon to over 3.50 a gallon.  This will play out more and more as we can buy less and less.  A slow boil will continue until your actually boiled alive! 

Thu, 03/21/2013 - 09:56 | 3356739 LawsofPhysics
LawsofPhysics's picture

I see plenty of EBT card holders still eating.  Oh well, must be my "lying eyes" then.

Thu, 03/21/2013 - 10:02 | 3356774 ekm
ekm's picture

You reference point is quite extreme, something like northkoreanization of USA. You could be correct, but it doesn't need to get that far.

Thu, 03/21/2013 - 09:41 | 3356654 forwardho
forwardho's picture

Imagine, if you will an american who has never known hunger for longer than two hours.

Now see him after two days with no chance of food to come. (supply line break)

Be honest in your assesment.

Multiply by 200 million.

Consider the implications.

Thu, 03/21/2013 - 11:08 | 3357061 LawsofPhysics
LawsofPhysics's picture

No need to imagine anything.  The world has been here before.  Simply hedge accordingly (and multiply your number by 10).

Thu, 03/21/2013 - 09:51 | 3356709 spanish inquisition
spanish inquisition's picture

On the plus side for Cyprus, most big war pre-triggering event countries (Austria, Czechoslovakia..not so much Poland) get away pretty clean. Might want to be the first one in....

Thu, 03/21/2013 - 10:02 | 3356772 1835jackson
1835jackson's picture

Agree but perhaps this time could be different. But I must admit perhaps not. In the Great Depression the masses had little debt, no home and most could not read. Today people have huge amounts of debt, foreclosed homes and smart phones in their hands with access to large amounts of information and most importantly can communicate to vast amounts of people in an instant. I suppose what I am trying to get at is the mob has changed.

Thu, 03/21/2013 - 11:01 | 3357102 Super Broccoli
Super Broccoli's picture

yeah the mob thinks it's got something to lose and feels like it owe something ...



Thu, 03/21/2013 - 09:14 | 3356529 machineh
machineh's picture

"The (Cypriot) parliament is obviously too emotional and will not decide on anything, if Cyprus does not even feel that they can attend the call it is a big problem for us," the French representative said.

HA HA HA! This is rich, coming from the French.

If the banks were closed in Paris, there would a nationwide strike, with cars burning in the streets.

Got fromage, bItCHeZ?

Thu, 03/21/2013 - 09:42 | 3356662 hapless
hapless's picture

Projection is the domain of the Left.

Thu, 03/21/2013 - 09:19 | 3356533 Yen Cross
Yen Cross's picture

     Anyone in Southern Europe that wants to meet their local banksters and politicians need go no further then their local ATM. Be sure to bring your Golf Clubs and Cricket Bats, for personal Autographs.




Thu, 03/21/2013 - 09:24 | 3356539 TomGa
TomGa's picture

But, but, but, the media trotted out Fink et al who said Cyprus was only a $15 billion problem and not worth the sweat off his balls.  LOL. The sheer magnitude of the dismissiveness was an instant indicator of the true underlying level of panic.


I hope the Russians enjoy their new warm water port and gas fields.

/sarc off

Thu, 03/21/2013 - 10:07 | 3356803 HardlyZero
HardlyZero's picture

UK has two established military naval bases in Cyprus which covers 3% of the island nation.  Might get crowded.

Thu, 03/21/2013 - 10:30 | 3356932 Herodotus
Herodotus's picture

Why do they still need all these naval bases when they only have 3 ships left in their navy? 

Thu, 03/21/2013 - 13:00 | 3357778 SDShack
SDShack's picture

Soon to be offered to the highest bidder...

Thu, 03/21/2013 - 09:17 | 3356542 tecno242
tecno242's picture

I want to be a fly on the wall in the hidden back rooms where the conversations are going on about what kind of derivative exposure there is to this and at what entities these amounts are located at and who has derivative exposure to any of those entities that could be in danger if this is all allowed to fail.

LOL... i hope a bunch of big wig shitbags are about to have a heart attack right now.

Thu, 03/21/2013 - 09:17 | 3356547 Downtoolong
Downtoolong's picture

And, if they won't bail out Cyprus for a measly $12b, what are the chances they will continue to bail out Ireland, Portugal, Italy, Spain, anyone for any more? 

Thu, 03/21/2013 - 09:33 | 3356621 morning
morning's picture

Minus 273.5, but pick an assorted handful of sheeple on the streets and try to withstand more than five minutes when all they talk about is football, petty politics, subsidies and give-me-mine.

Thu, 03/21/2013 - 09:36 | 3356629 keep the bastar...
keep the bastards honest's picture

Nuh. the 10% levy  would have given the euro bitches 500BN. In greek bank bailout Greek bondholders ( ie cyprus banks)had a 70% haircut, the  bank of england, Deucthe and GSachs were protected by their Govts and NO haircuts to help the irish.

Who cares, why bail out a bank. they are not your country, get  your stuff and go.

Thu, 03/21/2013 - 11:04 | 3357128 Super Broccoli
Super Broccoli's picture

the thing is they don't want to bail out russian oligarchs

Thu, 03/21/2013 - 09:18 | 3356552 q99x2
q99x2's picture

I have a suggestion. Do what they did in the old West. Someone robs a stagecoach you go out get a posse arrest the banksters that did it. Bring them back to town. Make them pay up then you hang them.

Thu, 03/21/2013 - 09:20 | 3356569 ebworthen
ebworthen's picture

"The (Cypriot) parliament is obviously too emotional..."

Most people get emotional when mugged.

Thu, 03/21/2013 - 10:29 | 3356927 moonman
moonman's picture

Thats why they need to stop elections. They just place humans with emotions in seats of power.


Bankers need to be just placed in power so they can fix everything.

Thu, 03/21/2013 - 09:22 | 3356575 morning
morning's picture

Meanwhile in Social-Fairyland, raising salaries with money from hyperspace is discussed.

Thu, 03/21/2013 - 09:22 | 3356576 adr
adr's picture

They think there will be a solution because every solution for the past few years has been to say that they have found a solution, and do nothing other than throw printed money at the problem.

People in Cyprus are saying, "I have plentry of money, the problem is I can't get it. You won't let me get it because if I can, I'm going to take all of it and use it to buy something of value you can't immediately take."

Throwing money at people doesn't work if they have lost faith that it can be used for anything.

That is what is scaring the ECB. If Cyprus goes back to the Lira, the rest may follow quickly.

Thu, 03/21/2013 - 09:23 | 3356580 morning
morning's picture

Speaking of which, isn't Malta full of British types with deep pockets?

Thu, 03/21/2013 - 10:03 | 3356778 NoTTD
NoTTD's picture

It's about to be full of Cypriots.

Thu, 03/21/2013 - 13:35 | 3358013 Tango in the Blight
Tango in the Blight's picture

The Cypriot pound you mean.

Thu, 03/21/2013 - 09:24 | 3356590 Shevva
Shevva's picture

I'm still saying their going to rename the Cypriot money FEuros let a bank run happen then declare FEuros void.

Thu, 03/21/2013 - 09:27 | 3356591 The Heart
The Heart's picture

There goes the neighborhood.

Euro Working Group touched on Cyprus euro exit, capitol controls, source says:

Eurozone ministers openly discussed Cyprus leaving the euro in an emergency call on Wednesday, as alarm over the bailout crisis escalates:


Thu, 03/21/2013 - 09:26 | 3356598 Jason T
Jason T's picture

That's Raual Pal's pic!  it's 2013.. oh no

Thu, 03/21/2013 - 09:26 | 3356600 sudzee
sudzee's picture

68B in deposits - 680-1.3 trillion on and off the books. Right, cyprus is just a small potato. I suggest you panic.

Thu, 03/21/2013 - 09:32 | 3356617 Jason T
Jason T's picture

I wonder, how big was Lehman relative to the US gdp?  

this idea that cyrupus is so small I find idiotic.


Cyrups has nealry 4x the population of Iceland!  About the same population of Suffolk County LI.

Thu, 03/21/2013 - 09:35 | 3356627 Yen Cross
Yen Cross's picture

     De-Nile, I've floated down that river a few times...  The {European} banksters are about to get a crash course in 'Infectious Disease' control. ( The U.S. isn't far behind)

Thu, 03/21/2013 - 09:35 | 3356628 optionsman
optionsman's picture

The Russians will not get involved until after the Cyrprus banks fail officially and then they might wait to see what else might happen. I think all scenarios in this situation are positive for the Russians. If Germany/ECB agree to bail out Cyprus- a win for Russia as it further weakens the Germans and creates the need for Angela to seek more support everywhere she can. If Cyprus confiscates the deposits, emposes capital controls- all positive for the Russian Government as it only slightly delaying Cyprus banks collapse. This situation has been mismanaged by EU and its irreversible.......

Thu, 03/21/2013 - 09:41 | 3356655 keep the bastar...
keep the bastards honest's picture

Situation was set up. By ECB thru Greece.

Thu, 03/21/2013 - 09:41 | 3356658 toys for tits
toys for tits's picture


Cyprus has the Troika by the short don't let go.

Thu, 03/21/2013 - 09:52 | 3356717 semperfi
semperfi's picture

and they have a Russian Mafia gun to their head - gauranteed they won't let go

Thu, 03/21/2013 - 09:40 | 3356647 dobermangang
dobermangang's picture

It's the end of the Euro as we know it. 

It's the end of the Euro as we know it. 

It's the end of the Euro as we know it.  And I feel fine.

Thu, 03/21/2013 - 09:40 | 3356648 TNTARG
TNTARG's picture

Since Portugal and Spain have already passed bills to allow capital controls, it doesn't surprise me this:

"Restrictions on capital will probably be imposed," he said.

That was anticipated by ZH on december, 2012:

"On capital controls"

They may use the "Cyprus case" for the purpose. PIIGS, perhaps France and... Who else?

Thu, 03/21/2013 - 09:42 | 3356660 eclectic syncretist
eclectic syncretist's picture

The banks game of "bailout" as summarized by G. Edward Griffin

The banks know that they have their cartel agreement enforced by law, so they are not too concerned about losses. They know that no matter what decisions they make, if their loans go sour, they can absorb small losses. When the big losses come down the line, they know that they can go to Congress and say, "Hey, we need money to make up losses and we need it because it's in the interest of the American people. We don't want the economy to collapse; we don't want the banking system to collapse; we don't want corporations to go out of existence. Look at all the thousands of people who would lose their jobs, and a lot of these workers have families and children. The children won't have milk to drink." You know, all this heart-string stuff.

Basically they’re just trying to cover up the truth because they want taxpayer money to bail out their bad business decisions – but they always frame the issue in terms of protecting the nation. As a result, they're free to make loans to just about anybody.

Now, small loans they're very careful about. If you go into a bank to borrow some money for a car or house, they look you over very carefully – they look at your ability to pay. They are very cautious about that. But if you are a huge entity like a giant automobile company, or a city like New York City, or you’re huge like Mexico – and you're not just talking about borrowing ten or twenty thousand dollars or two hundred thousand dollars, but rather millions or billions of dollars, this becomes very attractive to the banks because they don't make money on anything except interest on loans. That's their whole business. They need to make huge loans and collect interest on these loans; that's their life blood. So they think: here's a loan to Mexico or here's a loan to China; think of the interest we can get off this loan. So they make bad loans, that's the bottom line.

Eventually, of course, some borrowers have trouble making the interest payments on those loans, and they start to get behind on their payments. What's the bank supposed to do with a country that's behind on its payments – or a large automobile company, or whatever? The banks can't really go and foreclose on an automobile company or a country, so the bank is kind of in a quandary.

So this is what they say: We're going to extend your payment period. We are going to make it easier for you; we're going to give you a break, and you won't have to pay this month – we'll extend the loan. In other words, we're going to extend the loan to the borrower so he can pay the interest, and we can continue to collect interest, but the corpus of the loan increases. The executives of the corporation or the political leaders of the country say: That's a hot deal; that's a way we can continue to have this money. And they use it for their purposes. We won't go into their purposes, but they get the loan extended and that works for a while.

After a while, though, they can't make the payments on the new loan either, so the banks say: I'll tell you what, let's just roll over the debt. We'll cancel it out. It’ll be a whole new debt, and it will be a larger debt, and we will expand the term from two years to five years. That works for a while, and then that starts to fizzle out. They keep doing that, over and over again.

These restructurings are primarily cosmetic, and finally the lenders have to have the taxpayers put some money into the pot to cover delinquent payments. When the banks get to that point, they go to Congress and come up with a sad story about how we need to protect America by bailing out these bad loans. Bailing them out will preserve jobs, keep people working, keep the economy strong, and keep the country that borrowed the money from becoming an enemy. After all if we force them into a tight spot with repayment demands, they may become enemies of America, and we don't need any more enemies.

So it's always framed as protecting and enhancing the interests of the American people. They get the American people on line through their Congressmen, who are pretty much captives of the whole system. Congress votes tax dollars for some kind of a stimulus program or some kind of a bailout program. But if you follow the buck, you'll always find that the buck goes into the coffers of the banks. The stimulus programs are there to allow the borrowers to continue to send the interest payments to the banks. That's where money ends up.

When Congress starts to resist, the banks go international for their money. They go to the International Monetary Fund or the World Bank, and they say: This isn't really a national problem let's have these loans backed up or guaranteed by an international banking agency, and the American people cheer because they think: that's not our money; that's coming from the world somehow. But they don’t realize that much of that money comes from the United States, and once again it's their nice friendly politicians in Washington who are voting the money to the IMF so it can go toward the interest payments on these loans, and it just goes around and around like that.

And finally a government agency steps in, like the Federal Deposit Insurance Corporation, and they guarantee loans with money they don't have. So where will that money come from? It comes from the taxpayers. This is the game called "bailout" and we certainly see it playing out in full force today, not only in billions, but in trillions of dollars.

If you watch these Congressmen on C-Span as they talk about what they're going to do, you realize that these guys don't have a clue. They're just being herded along. They're being told by leaders of the banking industry that if they don't vote for these bailout programs immediately, the whole banking system will collapse. America will collapse. The world will collapse. And you don’t want that on your conscience, do you Mr. Congressman? And they say, oh, no sir. So they just vote without reading these bills. They don’t have any idea how it works, and they don’t care. They just want to cover their derrieres, so if everything goes badly they will say, don’t blame me, I voted to bail out the system.

Around and around it goes, and unfortunately the average voter doesn't understand the game either. So while he's cheering all these great moves, thinking they're for his benefit, you know there are other agencies taking money away as taxes. I'm talking about taking money away from the people through their taxes and through inflation, so the spectators are being run through the ringer royally. They don't even know it, and they think that what's happening is all for their benefit.

Thu, 03/21/2013 - 10:00 | 3356755 TrulyStupid
TrulyStupid's picture

What a load of crap, the crisis started by bad loans loans to large entitites and "supply side" stimulus, but irresponsibility was really refined when giving loans to high risk small borrowers, even paying them to accept loans.

Congress is a captive of its bribers... corporate interests, foreign countries and its own military. They do not have any discretion on which way to vote on matters of substance. The fix is in and they do the job they're paid to do.


Thu, 03/21/2013 - 09:47 | 3356690 resurger
resurger's picture

I read the title and i got so confused, thanks for clearing it up

Thu, 03/21/2013 - 09:47 | 3356692 They Tried to S...
They Tried to Steal My Gold's picture

Even Wayne Dyer is impressed.....How to take over a country witohut firing a shot.


Dyer " These loans are manifestations of control"


What Would Rumi Do?

Thu, 03/21/2013 - 09:51 | 3356715 yabs
yabs's picture

what market?


oh you mean JP morgans private rigged casino?

Thu, 03/21/2013 - 09:53 | 3356724 thismarketisrigged
thismarketisrigged's picture

bernanke better hope he has lots of ink in his printer, because he is going to need it to stop the losses from piling up when this thing goes full blown out of control.


after cyprus drops out, its only a matter of time until spain and italy have there day, and i cant wait.


these bankers deserve everything they have coming to them, i hope they all go to prison for this.

Thu, 03/21/2013 - 09:54 | 3356728 semperfi
semperfi's picture

No matter how it works out, Cyprus is fucked.  When you can't pay back your debt period, you are fucked.  Anyone that can't pay back their debt is fucked (ultimately). 

Thu, 03/21/2013 - 10:02 | 3356771 Eagle Keeper
Eagle Keeper's picture

The whole deal here is to let Cyprus belly-up, knowing it is the smallest so the PTB can preach to the whole EU (or world) that unless they are granted unlimited printing ability the rest of the world will be in deep shit. 

Same scare tactic as Hank Paulson used on the US.....

Thu, 03/21/2013 - 11:46 | 3357368 Darksky
Darksky's picture

Love your avatar's image. Brings back great memories of my olde man coming home from work every night in his flight suit. The Big 22 outta Bitburg AFB.

Eagle Driver bitchez!

Thu, 03/21/2013 - 10:14 | 3356835 euflated
euflated's picture

Black Swan à l'Eurange is on the menu for the coming weeks.....

Thu, 03/21/2013 - 10:16 | 3356843 flyme
flyme's picture

Pretend, pretend everybody out there

(Give us a little exit time planning)

Relax, relax

It's just a little bump 

(wallet hit)

Move along, move along

(you'll still be able to eat)

There's no need to question or fear

(you'll still have a roof over your head)

Dry your palms

Reb up those keystrokes

Lets gently massage everything back in place

Pretend, pretend everybody out there

Now, now now

You're ready for the real plucking.

Thu, 03/21/2013 - 10:22 | 3356851 Quinvarius
Quinvarius's picture

No stopping the coming avalanche of selling.  You'd need a shock injection of 2-5 trillion QE in one month in the form of bank bailouts, on top of ongoing Treasury purchases, to stop what the idiots at the ECB started.  All they are doing now is trying to get Cyprus to make some kind of choice so they can take the blame.

And to think just a month ago bank failures were impossible becasue the central bankers were doing their job of bailing them out.  And now every bank on the planet is once again on the verge.  Choice or stupidity?

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