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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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.

Stackers's picture

Smoked Swan on the menu for next week ?

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.

http://www.thestar.com/news/world/2013/03/20/cyprus_seeks_russian_rescue_eu_threatens_to_cut_off_country.html

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.

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!

Ghordius's picture

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

Cdad's picture

Return to top, see 1st comment in thread.

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.

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. 

fonzannoon's picture

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

disabledvet's picture

"seashells BITCHEZ." this is not a "fiction" created by the puny ECB...this is a hit "generated by Governments." Go ahead...lawyer 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."

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.

Matt's picture

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

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. 

fonestar's picture

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

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?

DavidC's picture

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

DavidC

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.  

flacon's picture

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

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.

resurger's picture

I wont join you, ill be dead fighting.

Announce my name when am dead, thnx

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.  

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.

 

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

...is what the majority of the Cypriot want

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?

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.

Rustysilver's picture

LawsofPhysics,

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

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"

 

http://sherriequestioningall.blogspot.com/2013/03/russian-pm-medvedev-be...

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.

GetZeeGold's picture

 

 

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

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.

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 ;-)

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.

Lord Blankcheck's picture

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

SheepDog-One's picture

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

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."  

kliguy38's picture

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

slaughterer's picture

BTFCD = Buy The Fuckin' Cyprus Dip

Tatoo on gf ass if necessary

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.

 

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