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Cyprus Deposit Levy Vote Delayed, Will Go "Down To The Wire" As Up To 70% Deposit Tax Contemplated For Some
While GETCO's algos were poised to set off a buying tsunami yesterday the millisecond a flashing red headline hit Bloomberg with even the hint or suggestion that Cyprus is fixed, we said to sit back and relax because Cyprus "will get no resolution today, or tomorrow, and may at best be resolved on Sunday night following yet another coordinated global bailout, (although our money is on a last, last minute resolution some time on Monday when Cyprus is closed but the European markets are widely open)."
As it turns out, we were right, following reports by major newswires that the vote on the deposit levy will only take place (if at all) on Sunday night, after the Eurozone finance ministers' meeting on Sunday.
As it also turns out, and as noted previously, the votes taken yesterday were the easy ones - obviously Cyprus will now need capital controls in perpetuity to slow down the terminal unwind of its banking system which is now, for all intents and purposes, over and will only exist, if at all, entirely though ECB liquidity injections, but the difficult decision - to complete U-Turn on the Tuesday vote just saying no to deposit tax levy - has been delayed.
The reason for the delay? Deciding how to best bring the news to Russian, and other wealthy depositors, that not only will they not have access to their funds for a long, long time, the ultimate haircut on what they thought was safe, easily accessible cash as recently as a week ago, may be a stunning 70%!
From Xinhua:
The Cypriot parliament has postponed a debate on legislation imposing a levy on bank deposits until after a Eurogroup meeting in Brussels on Sunday, parliament sources said on Saturday.
The vote on the bill had been scheduled for Saturday, ahead of a finance ministers meeting to consider a revised bailout for Cyprus, following endorsement of nine bailout related bills at a day-long session of parliament on Friday.
The sources could not say if and when a deposits levy bill will be debated.
Troika technocrats representing the European Commission, the European Central Bank and the International Monetary Fund were at the ministry of finance early on Saturday discussing final details of the bailout.
Cyprus president Nicos Anastasiades was scheduled to fly to Brussels later on Saturday accompanied by leaders of parliamentary parties to plead his position on the bailout but plans may change depending on the outcome of discussions at the ministry of finance.
However his travel to Brussels has been throwing into uncertainty following the postponement of Saturday’s session of parliament.
Cyprus's bid to avert financial collapse will go down to the wire after the island said it would hold a crucial sitting of parliament only after finance ministers of the 17-nation euro zone meet on Sunday.
Cyprus faces a Monday deadline to clinch a 10 billion euro ($13 billion) bailout from the European Union or the European Central Bank says it will cut off emergency funding to the country's stricken banks, spelling certain collapse and potentially pushing the island out of Europe's single currency.
The way the deal is currently structured, all deposits that have EUR 100,000 and less in deposits, which in Cyprus amounts to 361,000 of a total 371,000, will not see a deposit tax, after last week's attempt to impose a 6.75% on all "insured" accounts. However, the same can not be said for the remaining 10,000 belonging supposedly to uber-wealthy Russians, but certainly to people from all over the world, and even Cyprus.
As a result, according to the rapidly shifting plan, depositors with the biggest local bank, Bank of Cyprus, may see losses up to 25%. Per Reuters:
Cyprus is considering a levy of about 25 percent on bank deposits over 100,000 euros ($130,000) in the island's largest local lender, Bank of Cyprus, Finance Minister Michael Sarris said on Saturday
Sarris told reporters that "significant progress" had been made in talks with officials from the European Union, European Central Bank and International Monetary Fund - the so-called 'troika' - and that the discussions may conclude on Saturday evening.
Cyprus' second largest bank, Cyprus Popular Bank, aka Laiki bank, where it appears the bulk of Russian cash is stored, will fare far, far worse with deposit haircuts up to a stunning 70% on the table, and that is after capital controls ease enough to allow for the deposit withdrawals!
Cyprus Popular Bank depositors with more than 100,000 euros will face losses, said Averof Neofytou, deputy president of Anastasiades’s ruling Disy party.
“They will wait for many years before they see what percentage they will get back from their savings -- 30 percent, 40 percent, 50 percent, 60 percent, it will be seen,” Neofytou said during the debate in parliament.
He didn’t say what could happen to larger depositors of other banks.
Nothing good, that's for sure.
But at least the bulk of the population will be spared. The problem is what Russia will do, when the ball is in its court following a vote to impair its citizens which may or may not come, as all political leaders in Russia have made it very clear this is an outright political provocation by Europe targeting purely Russian wealth.
What is also sure, is that any bulk investments in Europe, be they held by Russian, Chinese, or any other oligarchs, will now scramble to get out, knowing quite well their cash is not only no longer welcome in the Eurozone, but most likely will be used to fund bailouts of assorted insolvent European nations. Such as all of them. This could be a very big problem because according to JPMorgan, the share of large or uninsured deposits is about half of total deposits in Euroarea banking system including the peripheral countries.
Should a stealthy "uninsured" depositor run in Europe take place following this weekend, and up to half the funding of European banks go poof - that which until recently was generously provided by the same uberwealthy who are now the target of persecution seemingly everywhere - not all the ELA, LTRO, SMP, OMT, and any other acronym free ECB money in the world will be able to hold the Eurozone together.
In the meantime, those hoping for a Saturday resolution to the Cypriot expropriation of Russian wealth are urged to step back from the computer and go for a walk - it will take a while, and will likely be after the imminent onslaught of fire and brimstone from Russia which now does everything it can - including outright threats at this point - to make it clear that should Europe indeed go ahead and impair its wealthiest depositors by up to 70%, that the European winter 2013/2014 season, will be very long, and very cold.
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Perhaps Putin should tell Barroso that a confiscation of Russian money in Cyprus is going to be viewed by Russia as an act of war. Those Euroweenies will be changing their shorts hourly. Russian politicians, oligarchs and mafia types all come from the harsh Russian street that long preceeded the collapse of the Soviet Union. A brutality little known in Western Europe today is standard Russian fare. There will be vengence. It will be violent. It will be the slaughter of many Euroelites. Who in their right mind would openly steal from nasty people who have access to Polonium 210?
By Sunday night, we'll be up to 700%. Cyprus will book the remaining 600% as income on the assumption that all parties affected will come through with the remaining 6x deposit value in due time.
Creative EU Problem Solving 101 put to practical use!
Somebody is on a suicide mission.
Cypriot politicos will end up feeding the sharks....with the rest speaking Russian in the soon to be Russian Colony
Here in Limassol there are Russian language schools on every corner. Funny though, I didn't see many Russians out and about today in Limassolagrad. I guess they're home cleaning their AK's...
Call the Rocket Red Brigade quick!
I feel quite puzzled why Russia hasn't grasped this chance to extract the most from Cyprus. Cyprus can provide Russia with a new navy base and gas reserves. Granted that some of the deposits at Cypriot banks may belong to some anti-Putin Russians, it may still be worth a try.
Why grab now what you can grab for a fraction of the price a little later?
In my opinion, Cyprus faces a choice between the EU and Russia at the moment. If Russia does not help, Cyprus will have to do as the EU told. Do you think Cyprus will snub the EU and leave the Eurozone on its own? I doubt. And I don't think Russia would have a much better negotiating position after a Cyruxit.
It is likely due to Europe being more important to Russia than Cyprus. If Russia went in and bought everything in Cyprus to cover the rest, the EU politicans may lower their bailout to punish Cyprus and Russia for making that deal. Hence Cyprus would end up with the excact same problem.
Also, Russian politicans want free visa travel to Europe, which will greatly help businesses in Russia. They also want to keep other business deals. Hence, it does not make sense to piss of Europe to help such a insignificant country.
i bought a tax floor at 6.75% with notional of 1,000,000,000
am enjoying the ride....
Good point. the only explanation that comes to mind is that Putin privately quite likes the idea of Russian oligarchs taking a severe haircut as a penalty for salting their wealth away outside Russia. He may hope they'll learn a lesson, although they'll probably just find another banking centre to move what's left.
So Putin may be split between teaching his oligarchs a lesson and getting lucrative contracts with Cyprus to exploit its gas.
Nowdays, the oligachs in Russia are different from the ones in the Yeltsin era. Those disobedient ones are already dealt with. The remaining ones are Putin's allies. The anti-Putin Russians are mainly from the middle class.
That doesn't explain why there are billions of oligarch wealth stuffed away in dodgy banking centres around the world, much to the anger of Putin.
As far as I know, Putin himself has money in dodgy banking centres...
There are always two sets of rules..... ;-)
So that's why he's tossing around the idea of setting up a new Russian island tax haven (in the very model of Cyprus) on his eastern front,,,
Off topic but the latest tax haven target for corporations and wealthy is Peurto Rico. Hope they know that last fall they voted for statehood. I can envision the U.S. waiting till the money flows in there and then pulls a surprising quick vote to grant statehood.
What if Putin has his own Cyprus account?
http://www.zerohedge.com/news/2013-03-23/cyprus-deposit-levy-vote-delaye...
I'm going to put alot of analog back into my finances. Particularly when it comes to how I pay my monthly bills. Going away from auto-pay and back to paper. Also going to do away with the direct deposit. If things go sideways I can then control what happens to my money and decide who I'm paying and who I'm not. If things looked pretty bad I'd only pay the utilites and bulk up my cash reserves.
Parliament knows that any levy will be the end of Cypriot banking as they know it. Might as well milk it to the max before the ship sinks.
70% isnt a haircut. Its Chemotherapy
It's a headcut.
70%? Why not just take it all then...
It's called giving away bits of one's winnings to the loser.
It's called "easy come, easy go"...
It's a public secret that majority of SE European tycoons hold their stash in off-shore (previously known as paradise) accounts in Cyprus banks. They "earned" their wealth by a stroke of the pen after the fall of socialism in the early 90's by pillaging whatever public assets they could grab; and back in those days over 90% of all assets were public.
Oddly enough, every single of these hand-picked mofo's that "inherited" factories and enterprises that for over 50 years were built with people's money and sweat, are members of some Rotary, Lions or Younameit masonic club that began sprouting like mushrooms all over the place back in those days... Now I guess it's time to return the favor to their masonic family, in the spirit of old jewish tradition.
BTW, since it's saturday and the 'Cyprus fix' has been postponed, I provide you a link to Occult Forces, a 1943 movie by Jean Mamy that cost him his life. Well worth watching...
"There's one for you, nineteen for me, 'Cause I'm the Taxman"
- Fab Four
Its gonna be fun watching CNBC translate this high level theft into a reader friendly, sheep consumable, conscience doping acceptable translation, like: "Cyprus depositers find solace and agree to cost efficient bank tax...Stocks rally worldwide!!"
CNBC headline - "Cypriot Bank Levy A Godsend Giving 30% Back To Depositors"
More 'money on the sidelines' !
For sure. I wonder what that shill and putz Stevie Liesman has to say.
Liesman is too stupid to have his own thought. He's waiting for a script to be handed to him from Berstinky
You are 100 % right, unfortunately. After this charade is over on Monday morning (10 seconds before the "drop dead deadline", small Cypriot investors will be heaving a collective sigh of relief when they learn that they will only need to lose 6.9 to 10 % of their savings -- i.e. back to square one.
Still, the global Ponzi scheme has been exposed, sooner than expected, and that's a good thing. Now, at least, we've been given the heads up that we need to e need to prepare for the worst.
Large depositor flight - That's a fair assessment of what may happen with the banks in the wider eurozone. You can forget about any kind of stress test after that (Not that passing the stress test helped the Cypriot banks anyway), and beyond? Too many variables to consider, but all avenues lead to worse and superlatives of bad. We won't be discussing the restructuring plans of EU banks, we'll soon be discussing restructuring plans of the EU itself.
As for the end game, the capital controls, depositor haircuts, and austerity plans are not the end game itself, as some comments suggest, but merely the delaying of the end: The complete collapse of the financial system.
I'll take a guess about Monday's meeting on Cyprus. Less than 15% haircut and the issuance of CDs to large depositors, the "certificate of deposits" which have been quietly touted in academic circles. Replacing shiny papers with another bigger shinier paper that you can't use for years might be crazy, but hey! We live in a crazy world.
So much for those russian oligarchs bawling out : we won't pay anything.
This is a slap in russian oligarchy face and they lose a major portal into EU.
Oligarchs Got Money Out Of Cyprus - Business Insider
Is this pure bluff on their parts to hide the fluff being sheared behind the curtain after the decision?
Schauble now wants 7B not 5.8 B to authorise 10 B Loan to Cyprus...
Probably not, tax havens are used by foreign companies as conduits which bypass tax collection points, not static parking places, and most oligarchs have their wealth tied up in equity, not cash deposits. There could be cases where someone was cash heavy, like Mikhail Fridman after the Rosneft deal, who also has a bank which conveniently has operations in Cyprus, but he would most likely not be playing the role of depositor (and now bag-holder) at a competing bank. And if some oligarch was looking to park a huge pile of cash-- the local bank of bumfuck is probably not their first choice, when they can use UBS or any of the large EU or Russian banks that also have offices where they spend more of their time and attention.
I wonder what former German chancellor Gerhard Schroeder is doing these days (besides being on Gazprom's payroll).
This morning some key MPs of the Bundestag already said "NEIN!!!" to that Solidarity/Patriot Fund, discribing it as voodoo accounting. Back to square 1.
Russian hissy fit. http://www.youtube.com/watch?v=iziP3Lnq0lw
Russian roulette plus musical chairs...
More like.
Irish (IRA)pass the parcel and musical chairs.
i think Cyprus has all the trump cards even that it does not seem that way now. i say confiscation of deposits is more ominous for other EU countries than for Cyprus as after the confiscation Cyprus supposedly is fixed but not the rest of Europe who should worry in a big way. So JPM acknowledges as much as it is quite obvious. Merkel shows herself as quite shortsighted in this affair. Personally, I am waiting to find out how the f'ing OMT works ;)
"In the meantime, those hoping for a Saturday resolution to the Cypriot expropriation of Russian wealth are urged to step back from the computer and go for a walk - it will take a while, and will likely be after the imminent onslaught of fire and brimstone from Russia which now does everything it can - including outright threats at this point - to make it clear that should Europe indeed go ahead and impair its wealthiest depositors by up to 70%, that the European winter 2013/2014 season, will be very long, and very cold."
Very true.
But at least they can take cold solace in cuddling up to their solar panels and windmills ;-)
My first reaction was 70 percent!!!!???? FUCK THAT!
the spin will be interesting and entertaining.
My after thought was if they do pull 70 percent, then 20 percent from US Banks is a deal (thats the spin)
I'm out.
I think they are floating different balloons out of the percentage, to see how high they can go without bullets starting to fly. I thought the Irish would stand up a couple of years ago, maybe it's the Cypriots that will finally shove back.
Seems like Russians are screwed on this one.
First to avoid bank collapse after capital flight the haircuts need to be steep, and so they will be.
The locals will vote to keep the voters money and lose the foreign investment but still have the "protection" of Europe.
Gazprom gas cuts will only spur shale gas tech export from Americas, so no good there.
Russia needs to play hardball big time now.
So we're talking about a measly 10,000 Cypriot accounts with more than EUR100,000- a quick glance Orbitz lists 93 hotels in Cyprus - ALL of whom most likely use Cypriot banks for payroll for the 16,000 members of Federation of Hotel Industry Employees and Union of Hotel and Recreational Establishment Employees of Cyprus.
With a median gross salary of EUR 2,000 per month ANY employer with over 50 employees in Cyprus is set to get screwed.
So the question is how do the Cypriots vote in order to actually keep their money?
With their feet. Or in this case "with their amazing swimming ability."
How about this for an alternative
Bankers have 100% of their personal property confiscated and the proceeds used to pay down debt.
Bond holders are given a 100% haircut.
Depositors get to keep their money.
I would like to propose a new global holiday.
From this day forward every March 25th willl be known as "INTERNATIONAL KICK A BANKER IN THE NUTS DAY"
Add: all banksters are hung, all politicians are hung, all banks are shut down, all governments are shut down. That would be a good start, along with your suggestions.
Who cares.. The more they take the more equities will rally. This will be brushed off. They will claim its no big deal becuase Cyprus is so small. If you are part of the Euro you are a moron if you don't take your cash out now.
At the end of the day this is all about russia and russian hot money...........the russians wont be allowed to have any say in anything.......post reset......
The reset is closer than you think. Put ur thinking caps on and think 5 steps ahead of these fuckkers.
Clock strikes on midnight on the 25th. The people are fucked no matter what same with the Cypriot politician. Let's see if the politicians have a pair and pull fuck me well fuck you doubley move and start the derivative shitstorm.
I'm sure some trade records from the banks concerning those derivative positions and how toxic they are might just pop up somewhere on the interwebs.
They have to give up 70%, but they do get a free Spider Man towel.
Why are these assholes calling it a tax? It is just a loss that you take when you put hard earned or stolen money into a ponzi-bank in excess of the amount of deposit insurance. Another bad investment, happens all the time. Bail them out because??
Here is some music to get in the mood for pressing the red button on the derivatives euro banking system nuclear bomb.
https://www.youtube.com/watch?v=sC2GjXMk7i4
Get your shit out of the system now.... Clock is ticking.
You won't have to tell the Russians twice.
Does this mean that they are going to import their riches back to Russian banks?
It is pointless to speculate. Anything can happen ... or nothing. Cyprus could re-introduce the pound and use whatever euros it can gain by way of foreign exchange to repay overseas depositors. The Icelanders are doing that now.
... after the same Icelanders stiffed the overseas depositors. The important thing is for the country's economy to survive, to avoid complete collapse. From here it appears that the EU's prescriptions are all poison. Common sense would be for the Cypriots to go their own way, absorb the accompanying beating then re-organize afterward.
The country has already 'made its bed' being an intermediary to the Russians, there are structural reasons for this rather than convenience. Regardless of what happens the Cypriots will be Russian intermediaries. This is what can be called a 'growing relationship' with accompanying growing pains.
Going their own way: the first step toward national credibility was Cyprus' parliament jettisoning the EU's 'policy' last weekend. It would gain more credibility by telling the Troika to pound sand and to close the subject. There would indeed be conversion losses. This sort of pain is manageable, countries have depreciated currencies before and lived to talk about it afterward.
Cypriot energy consumption would be cut by 40% or more. This would be a good thing for the country! Cyprus is broke in the first place because of the debts taken on to purchase imported fuel along with the automotive junk required to waste that fuel. What do the cars earn for the Cypriots? Nothing, they are simply toys and empty status symbols.
What's underway in Cyprus as well as the rest of Europe is conservation by other means. Instead of curtailing driving and car use directly, the purchasing power of the continent is drained away indirectly. By jettisoning the non-remunerative cars, purchasing power can be used for other, non-car endeavors, to pay for even more conservation.
Like eating, drinking and making merry, for instance ... or hunting down thievish bankers like dogs.
There has got to be a play here shorting Cypriot life insurers.
a 50pt gap down in the S&P this time would be nice
Just let me get this one right: If you have € 99,999 in deposits you won't get cut, however if you have €100,001 you will lose 25%=€25,000? So 2€ more snd you lose over €20,000?
Ben is leaving to get that big payback from Jamie and Lloyd before it becomes worthless.
by up to 70%
This plan will generate a lot of new jobs in europe like , food and drink testers , bullet proof vest manufacturers ,bomb sniffing dog trainers and handlers and alike .Please reply to this post with your ideas of jobs that this possible 70% "tax" on wealthy Russians could create .
I'm going long Bulgarian Umbrellas and Castor beans
Bullet proof window/safe room installers, alarm system and surveillance video installers, private armored vehicle customizers, body doubles/impersonators
Exactly. Go long riot gear
High "taxes" => boom in "Chaos Infrastructure" (patent pending)
Does lifelock have offices in Europe? Should be a big spike in ID theft (especially for those who for the EU, ECB , etc...)
Restaurant radiation detectors, especially for tea service.
http://en.wikipedia.org/wiki/Poisoning_of_Alexander_Litvinenko
Growth in retail shops selling rope and piano wire at factory gate prices.
Diesel and fertilizer transporters and sellers.
I hope you don't assume there's going to be "money" to be earned, cuz ain't nobody going to have any anytime soon. They'll have to come up with and agree on a new medium of exchange first.
Even if there would be no levy on insured deposits, will insured deposits be sujbect to the capital controls? Insured depositors could still be getting screwed if they are subject to capital controls.
If you muppets don’t vote in favor, you’ll get Bobo's Oranges and never shit right again.
One word: suicide
No one in their in right mind is going to keep any large amounts of money within the EU after something like that has occurred.
If Cyprus passes anything like this it's finished, irreversible damage.
They may as well choose to default, exit and turn on the printing presses if that's the deal on the table.
People they will learn much quicker now I think. Let's see if there isn't another bank holiday or capital controls somewhere else in Europe over the next few days. Maybe even in the UK where they certainly are fucking things up royally or maybe France with Hollande being despised nationally. Probably not but some will be wise enough to consider where there is smoke there is fire.
If insured depositers are raped, the next time the EU tries this, there won't be people standing in line at ATM's. ATMS will be stolen. Banks and government buildings will be broken into and destroyed. Bankers and politicians will be targeted. If the government tries a brutal crackdown, it will be all out civil war.
never mind.
has anyone else assumed a fetal position yet?
I curled up around my coins. Does that count?
Now the politicians are competing directly with the bank robbers who walk into a bank with guns demanding that the customers deposits be handed over to them.
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.
The world debt crises can be eased substantially by just cutting the salaries and perks drawn by the elected politicians and reducing their lavish lifestyles to one that is borne by the majority of the country's citizens.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
The Dem controlled Senate has passed a budget with $1T in tax increases. US is getting its own deposit levy.
This won't pass Congress, but typical fucking government will apply middle-ground.
In short, US is getting a disguised deposit levy.
This is proof for people to move their money off - shore into other countries.
Bullish for China to step in and buy European Bonds
just as the crisis keeps going on and on with no resolution the bank holidays are going to be long term affairs. a very very strong word to the wise.
Let's think about this. Substantial amounts of the deposited money was lent out for things like Greek bonds. Of course the Greek bond money was spent. It's gone. It's been gone a long time. You may have numbers in your account, but the money left a long time ago. Welcome to fractional reserve lending.
What happens to businesses who would need to keep 200k in their bank if they had to pay 100 people plus payroll taxes? What happens to all their govt and semi govt depts that surely have bank accounts. What about supermarkets like carrefour who employ perhaps thousands and would have large bank accounts - many businesses will immediately go bust. It's facile to call all big account holders mafiosi.
Stop making too much sense.
It's actually good that the Eurocronies partake of the illusion that they are only stealing from the Russian mob.
never mind.
As our friend Kyle Bass has said over and over: "You know how this all ends........in war"....."I don't know between who and who, but i'm pretty sure they won't be small..."
So the lesson here is if you keep your assets denominated in a fiat currency at a bank, they will/can take a piece at will without legislative approval. If you keep it in hard assets like gold, silver, cocaine (anything portable, hideable), it stays yours.
Somebody somewhere wants a war.
<--- Over
<--- Under
June 2014. This is the line as to when we are going to see a picture that rhymes with this one.
http://upload.wikimedia.org/wikipedia/commons/0/0e/Inflaci%C3%B3_utan_19...
BTW, both movie snippets in the Big Lebowski apply to Cyprus: LogJammin' and Gutterballs.
pfft, that's all? that's what the fuss is all about? not to impair 10,000 foreign accounts?
sheesh
While it’s apparent that the powers behind the Troika pressure are the biggest of the international banks (Goldman, Citi, JPM, etc.), the chances that their funds are still in those banks is very slim.
Already, the Cypriot newspaper Filelftheros has made the allegation that, according to the Daily Mail, “Cypriot president Nikos Anastasiades 'warned' close friends of the financial crisis about to engulf his country so they could move their money abroad.”
Insider notification before the Crash of 1929 established some of the greatest fortunes in America.
After the 1929 stock market crash had run its course, Congressman McFadden charged that "the money and credit resources of the United States were now in the complete control of the banker's alliance between J.P. Morgan's First National Bank group, and Kuhn, Loeb's National City Bank."
Even a casual observer after the Stock Market Crash of 1929 had to notice that the ownership of the banking system had changed. Here’s the story from G. Edward Griffin (The Creature from Jekyll Island, pp. 497-503).
“On October 29, 1929, the stock market crashed. Thousands of investors were wiped out in a single day. The insiders who were forewarned [by Paul Warburg), a partner with Kuhn, Loeb & Co., which maintained a list of preferred customers] had converted their stocks into cash while prices were still high. They now became buyers. Some of the greatest fortunes in America were made in that fashion…
“John D. Rockefeller, J.P. Morgan, Joseph P. Kennedy, Bernard Baruch, Henry Morganthau, Douglas Dillon—the biographies of all the Wall Street giants at that time boast that these men were ‘wise’ enough to get out of the stock market just before the Crash. And it is true. Virtually all of the inner club was rescued. There is no record of any member of the interlocking directorate between the Federal Reserve, the major New York banks, and their prime customers having been caught by surprise. Wisdom, apparently, was greatly affected by whose list one was on.”
Back then not only was insider trading legal, but it was a necessary part of business and was provided by the brokers since all commissions were by rule, the same.
As you know, when tyrants are involved, “legal” is hardly an appropriate excuse; it generally means plunder.
On February 6, 1929, the Federal Reserve issued an advisory to its member banks to liquidate their holdings in the stock market. In that insider advance warnings is one of the ways that the investment bankers maintain their grip over the world, along with the expansion of bailouts from taxpayers, and in that central bank monetary policies often result in a direct rape of the public, such as on August 9, 1929 when the Fed reversed its easy-credit policy and raised the discount rate to six percent, while simultaneously “the System began to sell securities in the open market, a maneuver that also contracts the money supply,” it’s time we called this central planning what it is, as did FDR’s son-in-law, Curtis Dall: “the calculated ‘shearing’ of the public by the World Money Powers.”
Normally "money has nowhere to hide" but actually it has:
Cayman and Isle of Man at al. These centres are like DEPOSIT OF BIG MONEY, like a safe box.
Once the destruction is done in the "normal system", then money comes back from those black boxes like Cayman and Isle of Man.
the hofjuden ways seldom change
that blue print worked then and is also working well today
I'm going with Col. Mustard in the Library with the candlestick.
It is no longer stange that all crisis are triggered in March-April. That's the time when winter quits usually so Europe won't be affraid that Putin will turn off the heat.
- However, this winter is going on too, too long and UK is running out of gas.
http://www.dailymail.co.uk/news/article-2297296/British-gas-reserves-run...
- Bernanke's press conference was inexistent and boring
- Draghi is nowhere to be found. ECB is threating about liqudity and stuff like that, who's making that decision there? Don't they have to vote?
- Right after JPM board confirms Dimon as demi-god, the justice dept reveal a criminal investigation against JPM, clearly directed at Dimon.
http://www.cnbc.com/id/100578167
A lot of moving parts, bankers seem to have disappeared, politicians and military seems to have come upfront and becoming main players.
This is exciting.
It seems to me that $85b/month QE is not enough to cover the derivative loss payments of primary dealers and euro major banks for two reasons:
1) There's not much left to buy for the Fed. Most of bonds are purchased, hence shortage of collateral.
2) Crude oil price is still sky high and in hyperinflation from a normal supply/demand of $40-50 price and has been like that for 18 months or more.
I still think that we are only weeks away from the pre-planned collapse, same as pre-Lehman pre-planned collapse.
how long before 85 billion becomes 85 billion times 10 or more?
It must have already become, since bankers are disappearing from MSM.
Since Bob Woodward attacked Obama, military seems to have said 'enough is enough'
DOJ investigation on JPM right after the vote of the board to retain Dimon is quite impressive.
Bob Woodward is the military man I was told here on ZH. I did online research and it is true, he is.
They're spending way more than 85B a month....
ummm, I mean printing...
This could be the moment in time we have been waiting for. Open season on bankers and their family's, no bag limit. They Steal the other side Kills, We need a scoreboard.
In regards to the Russians being locked out and robbed of their money:
"Obstacles make you clever." - Ho Chi Minh
"When the prison doors are opened, the real dragon will fly out."
- Ho Chi Minh
"After the war .... we will offer the Americans Cam Ranh Bay .... to show them there are no hard feelings .... the real threat comes from China !" Ho Chee Ming
How soon will March deposit/withdrawal data be available? There's go to be some insider who has access to this data.
I bet Tyler knows one or two of them !
Hint.. hint...
Amateurs study tactics professionals logistics, let me know when this event impacts credit and supply lines in the U.S. until then it is interesting how the Euro's have committed seppeku with Cyprus.
You give the Russians way too much credit .... like their excursion through Communism was sheer genius .... wishful thinking by leftists who were devastated when Reagan called their bluff !
"Cursed be the social wants that sin against the strength of youth! Cursed be the social lies that warp us from the living truth!" - Alfred Lord Tennyson
In the article - disagree with this point - I will explain why. Think one or two of those much larger despositers will already have figured this out also.
"that not only will they not have access to their funds for a long, long time, the ultimate haircut on what they thought was safe."
Haircut aside so when do you get your money back? Never ... How come? That would require 2 things.
1. A banking system that actually works as intended and does not add one more penny in debt.
2. Then to allow the depositer to remove their money you got to generate MEGA BUCKS OF PROFIT more to cover the time the despositer will remove their money.
Frau Merkels' panties must be rolled-up into a bunch by now?
I wonder if Chelski Football Club banks in Cyprus? This would dry up Abramovich's cash tap....
"Where's our wages Gov?"
"Eh, give me a few weeks (or months) to sort it out Frank"
Most of the sick Socialist world .... would benefit .... from a Hiroshima style cleansing .... and restart .... and that's the truth ! Monedas 1929 Comedy Jihad World Tour
There will be a gas tax of 30 percent, 40 percent, 60 percent remains to be seen.
China needs gas and oil. Why doesn't the new guy with the latest pan banging sounding name print em up 10 billion in jaun and convert the rest of the money from Euros. Cyprus could go FU EU and live long and prospers They could even purchase a fleet of Chinese drones to protect their new democracy.
Escalation ain't just a happy Eskimo with a new snowmobile.
The EU looks like they are begging for Russian retaliation. Adding a geopolitical dimension to the EU insolvency equation in Cyprus opens the door for the EU to invoke (supra-?) national security for future draconian confiscations and measures in Europe, including tanks on the streets.
Such a thing would allow the EU to scapegoat Russians and BRICS for the clusterfuck and shift blame away from Banksters/pols. Follow the propaganda, we already know where the money is going.
The Iraq War was an unmitigated success and precursor to the "Arab Spring" .... the Kurds have more autonomy .... the Sunnis and Shia are fucking each other .... which is the snail and which is the thorn .... chaos reigns amongst the evil people .... it doesn't get any better than this .... clever and sinister western minds .... are still roiling the pot of shit that is the rest of the world ! The Turk prime minister is placated with a stupid, meaningless apology .... how dumb is he ?
What are they trying to save? It appears to me that the banks are insolvent and what they are effectively doing is stepping in an liberating the cash before the banks assets are seized for liquidation by proper legal procedures. Total bank heist. But presumably there is not cash so they are stepping in and taking possesion of what? Sorry not so clear on finances.
Funny, now we learn who the real crooks are - meaning they are dropping all pretenses. This is good. Full faith and credit. This too is "Why I am richer than you."
So the only safe places to keep money will be those that have not been absorbed by the Borg.
I don't think they are trying to save anything. This is a scenario that will be played out across the globe to destroy people worldwide. Coming soon to every society, without exception. They are bringing the financial systems down, systematically, for purposes of bringing in a single monetary system, thereby enslaving everyone. Let the naysayers laugh all they want.
If they have no scruples about taking your money in open daylight (STEALING), then you have to assume they have no regard for any and all of law.
Just look into their eyes. These people have no remorse. It's like looking at death that yet has a heartbeat.
Unless Russia is enjoying the sight of its oligarchs losing ill gotten cash, I believe that Putin may hand over the 6 billion needed so as to avoid the Russian mafia going after him instead.
So let's say you happened to sell your house a couple weeks ago. Funds went into your account and while you were looking for a new house your account was over 100k.
Aaand it's gone!!!!
Depositors will be lucky to keep 30% when the bankers want it ALLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL!
Russia will NEVER allow this. Putin has a lot of money in Cyprus.
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I don't care WHERE you are in the world. This predator-bankster insanity may get out of hand extremely quickly, and in fact may be planned to get out of control very quickly, giving the predators-DBA-government and predators-DBA-banksters the modern excuse to steal everything, and return to entire world to overt slavery as long planned by the NWO predators.
It is difficult to believe these scumbags are so wacko that they don't understand what they are causing. Therefore, they probably do understand, no matter how nutty that may seem.
Get your savings out of fiat, bonds, stocks and all other paper investments and buy gold, silver, platinum and whatever else you want that is real, physical and has intrinsic value.
This could be 1929 all over again... only worse and permanent.
Holy Shit!! France #2