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Why Cyprus Matters (And The ECB Knows It)

Tyler Durden's picture


Via Mark J. Grant, author of Out of the Box,


When Zig turns to Zag and the Red Queen is after your head then extraordinary care is necessitated. To quote Holmes, "The game is afoot" on the Continent.
I have been asked, with some frequency, why the bondholders have not been tagged in the Cyprus fiasco. That answer is simple. Most of Cyprus's bonds are pledged as collateral at the ECB or in the Target2 financing program. Then one may also ask why the bonds of the two large Cypriot banks are not being hit. The answer is the same; most are held as collateral at the ECB or Target2. In both cases, remember uncounted liabilities, the government of Cyprus has guaranteed the debt. Consequently if the two Cyprus banks default it is of small matter as the sovereign has guaranteed the debt. However if the country defaults and leaves the European Union then it will matter and matter significantly as the tiny country of Cyprus would wipe out the entire equity capital of the European Central Bank. While it is not a matter of public record it is estimated that Cyprus has guaranteed about $11.6 billion of collateral at the ECB.
On Friday Cyprus made provisions for the re-structuring of its banks. They also imposed capital controls. However what they have not done yet is decide how they will reach the funding demanded by Europe. That decision was postponed until after a meeting with the Troika that will take place today and a meeting of the EU Finance Ministers that will take place on Sunday.
The last go-round on this issue, as you may recall, resulted in not one single vote for the imposition of the expropriation of people's bank accounts or what Europe misguidedly calls a tax. Taxes are legislated, paid from people's checkbooks and not removed from their bank accounts by a government. Taking money from a citizen's bank account by fiat is little more than theft as it is delineated as private property and is the person's own money and not a bond or stock or a security of some sort with the normal risks appended to any sort of an investment. Even in the case of a bank closure where there is a bankruptcy proceeding there is the "due process of law" where decisions are made by the Judiciary and not mandated by a session of Parliament.  Further, not all of the deposits in Cyprus are in troubled banks. There is UBS, several Israeli banks, a number of French banks et al that are not troubled and still Europe wants to demand that the bank accounts in those relatively healthy banks have depositor's money taken out of them to pay for the woes of the government.
Equally troubling to me has been the European process. The ECB gave Cyprus four days to come up with the funding demanded by Germany before they turn off the lending to Cyprus. I am reminded of Mr. Draghi's, "We will do whatever it takes" speech but this was not what I had thought it meant. The word "bullied" comes to mind as well as the word "vengeance." There is some discussion to be had about deposit guarantees as part of this drama but, setting that aside for a moment, to even take one Euro from a person's bank account strikes me as a precedent that will have long lasting effects on all the people in Europe as the seizure of private property is no longer protected by law.  Then to offer shares in a bankrupt institution as compensation is an attendance at the Theatre of the Absurd while I wonder how they are going to force UBS or BNP to issue shares for the money taken from those banks.
In the Press, on this Saturday morning, they are discussing a European proposal to expropriate 25% of all bank accounts in the entire country of Cyprus to help pay the bills. This would be from normal citizens, Russians, other foreigners, British expats, American corporations and any one at all with money in any Cyprus bank. This would include not just the banks of Cyprus but also the French, Swiss, Emirates and  Israeli banks et al with offices there. There is a long history of bank robbery in the world but this is one heist that makes John Dillinger or Jessie James a small fry by comparison.
(Reuters) German Chancellor Angela Merkel told lawmakers that while she wanted to keep Cyprus in the euro zone, it must first recognize it had no future as an offshore financial center.
Given what Europe is attempting to do to Cyprus she might as well have said, "that it must first recognize that it had no future" and left it there. Bank accounts expropriated, a future expropriated and the reputation of the European Union tossed into the Rhine and drowning.
I think that about sums it up.


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Sat, 03/23/2013 - 18:27 | 3366908 Bay of Pigs
Bay of Pigs's picture

Where is the deer in headlights Tyler?

Sat, 03/23/2013 - 18:35 | 3366940 kliguy38
kliguy38's picture

Its now. Just to ATTEMPT to take the deposits is the PRECEDENT.. The fuse is lit........"the game is afoot" and no matter WHAT happens next week they have started it. If you are waiting for the bullet to hit you then you're already

Sat, 03/23/2013 - 18:42 | 3366971 Mentaliusanything
Mentaliusanything's picture

A little help please, its been a while! How do you spell "CREDIT CRUNCH"

Sat, 03/23/2013 - 21:28 | 3367098 sunaJ
sunaJ's picture

Those that say this does not matter because Cyprus is small or this was planned (the panic, not the attempt to take depositors' money) fail to account for fragility.  Remember, this is modern finance, which means that parallel to the bond problem, the depositors' money is not just sitting there.   It has been pledged, reinvested and does not really exist.  So when everyone tries to transform an imaginary store of wealth (ie. a computer database that says this person has X.XX euros) into "unhypothecated" hard currency, well, that is when the fun begins. 

This could mean Germany acquiesces to outright printing (which still may not give much time to them), or the EZ is effectively dissolved.  The trust (or gullibility) of the people is evaporating faster than they can contain.  The Law of Unintended Consequences only exacerbates their efforts at this point, but make no mistake: capital controls are coming to everyone.

Sat, 03/23/2013 - 21:36 | 3367405 Eternal Complainer
Eternal Complainer's picture

What better way to introduce another 'new normal'
Capital Controls.
That's probably what this latest ruse is really all about.
Capital Controls everywhere.

Therefore: cash is soon = terraism

Sat, 03/23/2013 - 23:05 | 3367538 jeff montanye
jeff montanye's picture

imo germany asking for its gold back from the new york fed smacks of terrorism.

step out of line the man come and take you away.

Sat, 03/23/2013 - 23:50 | 3367589 stocktivity
stocktivity's picture

What??? It's their gold!

Sun, 03/24/2013 - 03:00 | 3367746 Crash Overide
Crash Overide's picture

You better stop hey what's that sound everybody look what's going down...

Sun, 03/24/2013 - 03:52 | 3367762 RafterManFMJ
RafterManFMJ's picture

There's something happenin' here...what it is ain't exactly clear...

Sun, 03/24/2013 - 11:53 | 3368498 Vendetta
Vendetta's picture

except ... everyone understands and sympathizes with the 'terraist"

Sat, 03/23/2013 - 22:21 | 3367486 Buck Johnson
Buck Johnson's picture

You essentially said what I said a few articles back, I'll quote what I said.  But your right, that money that these oligarchs and head of state and money launderers and essentially everybody else have aren't just sitting in those accounts.

"You think this is about Money Laundering operations, it's not.  Look at the Cayman Islands, Isle of Mann, Switzerland, Luxembourg etc..  Those places launder money and to be honest with you they are having serious problems financially also (it was in the news a few years ago that Luxembourg banks are financially insolvent).  I read an article on ZH a few days ago talking about how black accounts aka dark money is used around the planet and I'll add another.  If your a oligarch or a ruler of a country that is hiding your money lets say an easy 1 billion dollars (I know there are people who have a few million but the more money you have the better the concierge).  That money is put into banks in said countries, what do you think the bank is doing with that money besides charging a fee?  The are using that money just like any other bank in leveraged operations and "secure" loans.  And in their minds they most likely did the derivative thing and also pay for insurance just in case it doesn't work out it pays the full amount on the derivatives.  You have to look at it from the point of view of the banks, there hasn't ever been a failure of the derivative system, ever (but now it's come to pass). 

That money and other hot money and oligarch money and such is tied up in much of these banks along all the lines I described.  So if the Derivative system goes down or Cyprus goes into default it means it's bonds and other financial instruments that are associated with the country are in trouble.  Of course the investors would say this credit event would be call for the insurance to come into effect (where the insurance pays the full amount on the bonds and the derivative contracts on thos bonds and on and on).  Since we know the derivatives around the planets if in the quadtrillion, lets say that all the contracts on just Cyprus is a 200 billion.  The banks or AIG (the insurance company that insured most of the derivative contracts) don't have 200 billion (and that is the contracts that is known, remember the derivative market isn't regulated it could be alot more and most likely is) to pay out.  And if they don't pay out then the banks and the insurance company are bust and then not only is the minimum 200 billion dollars they contracted on is not collectable it makes the rest of the bonds and derivatives that was put out there and insured to be suspect (really outright fraudulent).  It's starts a cascade of people trying to redeem billions and trillions that isn't possible.  That is the reason why Cyprus isn't important, it's not their economy it's the fact that who have been insuring there derivatives and bonds can't make good and in so being can't make good on the rest of the planet.

I think the reason why Germany and a few others pushed Cyprus was one big reason, I think Germany wants out o the EU (they are essentially the bank of the EU anymore) but everytime they hint and haw about leaving and such they get shamed via the Hitler and WWII and Germany destroying europe again that they back off.  By pushing Cyprus they can make it seem that Cyprus is the one to blame for the destruction of the EU and euro.  This sounds foolish but in Germany's mind they think that they can weather the storm.  I don't think so but who knows."

Sun, 03/24/2013 - 04:08 | 3367770 The Heart
The Heart's picture

Dunno, the "Chancellor" is pretty angry about all that hitler stuff. May be reason alone to just say, nine!

Wasn't that a "chancellor" in the movie "V"?

"German government patience is said to be 'wearing very thin,' with Chancellor Merkel reportedly seething at seeing herself caricatured as Hitler on demonstrators' placards in Cyprus."

Pictures of Cyprus and more here:

Sun, 03/24/2013 - 11:25 | 3368404 spine001
spine001's picture

"Those that say this does not matter because Cyprus is small or this was planned (the panic, not the attempt to take depositors' money) fail to account for fragility."

Great comment. In engineering terms ( remember that the economic system is a system after all) fragility is understood as Stability of the system measured as its ability to withdstand shocks (black swan type and expected) . I have been writing, including an open letter to BB in 2008 that monetization in excess is extrenely dangerous because it increases the gain of the system, thus amplifying the shocks and risking making the system oscillatory. Economists call this fragility. But is a lot more complex than this, a whole lot....

Until next time,


Sun, 03/24/2013 - 18:28 | 3369809 New_Meat
New_Meat's picture

sunaJ: jfc-- rehypothecated credit!

I'm just a small piglet in these matters, but i know that you have hit the nail on the head.

Thank you.

- Ned


Sat, 03/23/2013 - 19:28 | 3367100 mikla
mikla's picture

Credit Crunch

Sat, 03/23/2013 - 20:02 | 3367187 Yen Cross
Yen Cross's picture

      I love a  teaspoon of 'potassium chloride', on my '"Credit Crunch'"...

Sat, 03/23/2013 - 20:20 | 3367227 grunk
grunk's picture

Helicopters are soooooo 2008.

Ben uses drones now. Borrows them from Big Sis.

Sat, 03/23/2013 - 21:23 | 3367382 hardcleareye
hardcleareye's picture

Oh that is very good.......

Sun, 03/24/2013 - 01:18 | 3367689 StychoKiller
StychoKiller's picture

Not only rots yer teeth, but yer brainz too! :>D

Sat, 03/23/2013 - 18:53 | 3367016 Water Is Wet
Water Is Wet's picture

I think there is a lot of internet outrage which will do nothing to stop the PTB from doing this at least 8 or 10 more times.


Sat, 03/23/2013 - 18:40 | 3366966 dark pools of soros
dark pools of soros's picture

that's what will be on the trillion platinum coin

Sat, 03/23/2013 - 18:53 | 3367011 machineh
machineh's picture

Kurgman on the obverse; 'deer in headlights' on the reverse.

One Kurgmanrand = one trillion FRNs

Spend it now, before prices go up!

Sat, 03/23/2013 - 18:40 | 3366968 wisefool
wisefool's picture

We dont post youtube links in fight club. But if we did, it would be a majestic song about low IQ people who also and at the sametime do not have a good heart.

Subscribe to the IRS youtube channel while the internet still works!


Sat, 03/23/2013 - 19:15 | 3367071 toys for tits
toys for tits's picture

I'm having trouble remembering all these Fight Club rules.  Anyone have a list?

Sat, 03/23/2013 - 19:29 | 3367104 wisefool
wisefool's picture

rule #1. You dont cheat on your taxes.

rule #2. If you cheat on your taxes, you must become secretary of tanks on the streets.

rule #3. Tanks dont work well everywhere, so you should learn seaman skills.

Sat, 03/23/2013 - 19:39 | 3367126 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

You fight today. After that you will remeber the rules or not. It all depends on how hard you fight.

Sun, 03/24/2013 - 08:44 | 3367942 GMadScientist
GMadScientist's picture

"Two men to a fight"

"One fight at a time"

Sat, 03/23/2013 - 18:42 | 3366970 Croesus
Croesus's picture


I am Vladimir Putin’s assistant, Dmitri Volkov, manager in the Bills and Exchange at the Foreign Remittance Department of the RUSSIA INTERNATIONAL BANK. I am writing this letter to ask for your support and cooperation to carry out this business opportunity in my department. We discovered a sum of $15,000,000.00 (Fifteen million Euros) in an account in Cyprus.


We cannot release the fund from his account unless someone applies for claim as indicated in our banking guidelines. Unfortunately,nobody has come forward to claim fund. Upon this discovery,I and other officials in my department have agreed to make business with you and release the total amount into your account since you are nice guy.


We have agreed that our ratio of sharing will be as stated thus;20 for you as foreign partner,75 for us the officials in my department and 5 for the settlement of all local and foreign expenses incurred by us and you during the course of this business. Upon the successful completion of this transfer,I and one of my colleagues will come to your country and mind our share.It is from our 75 we intend to import Gas Drilling Machineries into Mediterranean country as a way of recycling the fund.


To commence this transaction, we require you to immediately indicate your interest by a return e-mail and enclose your private contact telephone number,fax number full name and address,and your designated bank coordinates to enable us file letter of claim to the appropriate departments for necessary approvals before the transfer can be made. Note also, this transaction must be kept STRICTLY CONFIDENTIAL because of its nature.I look forward to receiving your prompt response.


Best Regarde

Dmitri Volkov


Sat, 03/23/2013 - 18:44 | 3366981 Rogue Trooper
Rogue Trooper's picture

LOL +1,000 for the Nigerian 'mem'.

Sat, 03/23/2013 - 18:59 | 3367031 Urban Redneck
Urban Redneck's picture

I got one of those from someone I actually know recently.  Since I already had his numbers on speed dial I telephoned him to follow-up on his offer, but he wasn't actually offering what he wrote me was offering... or even half as amused as I was by the whole thing... 

The email address displayed in the solicitation actually was his email address.  When the US goes full banana, it will might be the next paradigm of id theft- 

Sat, 03/23/2013 - 19:13 | 3367065 toys for tits
toys for tits's picture

He must have had a yahoo account.  

Hackers have been able to crack many yahoo accounts, mine and my family included.  I still get messages from me, as I had another type of account in the addresses when it was hacked.

Sat, 03/23/2013 - 20:10 | 3367203 Urban Redneck
Urban Redneck's picture

It would help if business leaders, bankers and goverment officials actually used their official accounts instead of private ones... but then it wouldn't be the wild frontier it is-

Sun, 03/24/2013 - 09:05 | 3367989 GMadScientist
GMadScientist's picture

+1 just for "...since you are nice guy."


Sat, 03/23/2013 - 19:03 | 3367042 Banksters
Banksters's picture

What's mine is mine and what's yours is mine.



The banksters


PS  Jon Corizne is still free.   Why not, he only stole- ok rehypothecated,  1.6 billion dollars..

Sat, 03/23/2013 - 20:15 | 3367217 q99x2
q99x2's picture

The deer went to hide his green shoots.

Sun, 03/24/2013 - 06:30 | 3367834 css1971
css1971's picture

The market isn't there yet.

Sat, 03/23/2013 - 18:28 | 3366914 Yen Cross
Yen Cross's picture

     Where is Draghi? Crickets...

Sat, 03/23/2013 - 18:29 | 3366915 ekm
ekm's picture

This is a political issue, military issue. Nobody cares about order takers like Draghi and Bernanke.

Sat, 03/23/2013 - 18:39 | 3366954 Yen Cross
Yen Cross's picture

    I'll bet Draghi is finishing the 'ESM' blueprints, that he was caught knowing little about (2) ECB policy meetings ago. None of the EU bailout programs are funded or able to be(contractually) implemented, courtesy of 'Chair Satan', and POMO.

Sat, 03/23/2013 - 18:40 | 3366965 ekm
ekm's picture

not far from the truth :)

Sat, 03/23/2013 - 18:38 | 3366957 Bingfa
Bingfa's picture

In Moscow, new Chinese leader Xi warns against meddling....

Permanent U.N. Security Council members with veto power, Russia and China have frequently teamed up diplomatically to blunt the influence of the United States and its NATO allies and have blocked three draft resolutions on Syria.

Sat, 03/23/2013 - 18:42 | 3366974 ekm
ekm's picture

Drudge headlines it as "new world order" meaning nobody cares about USA any longer.


If that does not shake Obama's brain, nothing will. As a politian, he's the most clueless one USA ever produced. It shows a lot of about the american voter.

Sat, 03/23/2013 - 18:46 | 3366984 fonzannoon
fonzannoon's picture

Kyle Bass made it clear Obummer's plan was to kill the dollar. he is probably wondering what is taking so long.

Sat, 03/23/2013 - 18:50 | 3366998 Yen Cross
Yen Cross's picture

    Fonz, the $ is the tallest midget in the submarine race...

Sat, 03/23/2013 - 18:51 | 3366999 ekm
ekm's picture

Kyle Bass is in a "meredith whitney" situation. He's put a date on his prediction about Japan, which is I think 2-3 years from now. However, he had put a date on it, 2 years ago also.


That is an absolute no,no,no and no. One never puts a date.

So, I'm thinking he's trying to use his world wide fame to affect the outcome, same as Hugh Hendry who trashed gold stocks some time ago, which actually is credited to have crashed the gold stocks.

Sat, 03/23/2013 - 21:09 | 3367346 hardcleareye
hardcleareye's picture

Nope, not right...  Bass prediction on Japan is at 16.5 months and counting... 

Sat, 03/23/2013 - 21:22 | 3367380 hardcleareye
hardcleareye's picture

I enjoy reading Bass's work and following the lectures etc that he gives...  (have been doing for several years) I looked to find that comment "killing the dollar" in context and found the quote at "Info Wars" (rolling eyes) and Mish's, the link to the video on both sites "does not exist".... 

That comment may have come from this talk given in 2011, and I believe that it is very much taken out of context......


Sat, 03/23/2013 - 18:50 | 3366997 Winston Churchill
Winston Churchill's picture

They care alright.Care is the wrong way to put it

More like they are pissed with Uncle Sam.

Interesting the Chinese Premier going to Moscow first.Getting very pally.

Ruan ,anybody.

Sat, 03/23/2013 - 19:01 | 3367039 ekm
ekm's picture

I agree. But, you know, I'm not trying to choose proper words, it's good to exaggerate something for entertainment purpose.

Sat, 03/23/2013 - 19:09 | 3367052 ekm
ekm's picture

re: your comment about imposing 15% on italian deposits on the other post.


I don't think it's ever going to happen. Russians and chinese can be handled internationally. But italian mafia are our own bad guys.


If that happens, Schauble better secures bodyguards all his life for himself and his family, because mafia never ever forgets. Godfather movie in real life.

Sat, 03/23/2013 - 18:51 | 3367003 Bingfa
Bingfa's picture

Low info voters...Lots of em

I still laugh out loud when I watch this...

Sat, 03/23/2013 - 19:00 | 3367033 ekm
ekm's picture

Freaking hilarious. I bookmarked it.

Sat, 03/23/2013 - 20:19 | 3367224 Terminus C
Terminus C's picture

Ignorati bitchez!

Sat, 03/23/2013 - 21:07 | 3367343 hardcleareye
hardcleareye's picture

Thanks for the laugh!  A little break from "looking into the abyss".....

Sun, 03/24/2013 - 00:59 | 3367671 Freddie
Freddie's picture

The muslim's job is to destroy Amerika.
He is suck-seeding. Thank TV and Hollywood and the idiots who watch.

Sun, 03/24/2013 - 06:21 | 3367829 bunnyswanson
bunnyswanson's picture

Obama is a Nowhere Man

Beatles - Nowhere Man

Sun, 03/24/2013 - 06:06 | 3367818 Ghordius
Ghordius's picture

"As a politian, he's the most clueless one USA ever produced" - I beg to differ, strongly

there is no country where it does pay more to be a politician that looks clueless - as Bush II demonstrated way better than Obama

remember the influence of think-tanks and lobbys on modern US politics - those are very "smart" guys, and legislation is drafted by them

if you want to take the excellent analogy by Bruce Crasting on his recent ZH Article On the Circus in Europe, they have a whole ring around Washington - what I call the Greatest Sewer on Earth - with it's more famous stretch at K-Street

note how much both Bush and Obama cherish an attitude of "buddy, I'm a guy you could drink a beer with after a round of golf or clay pigeon shooting"

Sat, 03/23/2013 - 20:17 | 3367222 q99x2
q99x2's picture

Draghi is down at the CVS using the "red phone" to buy BitCoins.

Sat, 03/23/2013 - 18:30 | 3366916 toys for tits
toys for tits's picture


You've won the right to postpone the bankruptcy of our country with a large portion of your demand deposit account.

Sat, 03/23/2013 - 18:31 | 3366920 Yellowhoard
Yellowhoard's picture

The idea is to corral money into banks that can be more easily swindled later on.

Sat, 03/23/2013 - 18:41 | 3366923 dick cheneys ghost
dick cheneys ghost's picture

Who invented Bonds?


A) James Bond


B) Kit Bond


C) Barry Bonds


D) the Rothschilds

Sat, 03/23/2013 - 20:07 | 3367193 Tinky
Tinky's picture

E) Ian Fleming

Sat, 03/23/2013 - 20:19 | 3367226 TBT or not TBT
TBT or not TBT's picture

St John. The one who wrote Revelations.

Sat, 03/23/2013 - 21:11 | 3367353 Deo vindice
Deo vindice's picture

Actually, St. John wrote the book of The Revelation (singular).

Sun, 03/24/2013 - 09:10 | 3368002 GMadScientist
GMadScientist's picture

I like Assassins Creed too.

Sun, 03/24/2013 - 09:09 | 3367998 GMadScientist
GMadScientist's picture

The Bleedin' Scots!

Sat, 03/23/2013 - 18:32 | 3366926 Schmuck Raker
Schmuck Raker's picture

...and that's MATE.





- Bitchez

Sat, 03/23/2013 - 18:32 | 3366932 LeisureSmith
LeisureSmith's picture

Oh so circular.

Sat, 03/23/2013 - 18:37 | 3366944 Jake88
Jake88's picture

When in the course of human events....

Sat, 03/23/2013 - 18:38 | 3366952 Gunga
Gunga's picture

It seems the ECB is doing everything it can to start the mother of all bank runs.

Sat, 03/23/2013 - 22:12 | 3367470 andrewp111
andrewp111's picture

Maybe Obama asked them to do it so he could break GOP control of the House next year.

Sat, 03/23/2013 - 18:38 | 3366958 Cdad
Cdad's picture

However if the country defaults and leaves the European Union then it will matter and matter significantly as the tiny country of Cyprus would wipe out the entire equity capital of the European Central Bank.

Ummm....what now?  Would also like to know just how that is possible.  And furthermore, just why CY politicians are begging for ECB money...instead of demanding it, as well as dictating the terms under which the ECB will be happily giving it.  Oh...and how the ECB giving money it does not have conflicts with the Eurozone Constitution.  Oh oh oh...and just how all of this is supposed to get done in 4 days...

I can continue asking questions if you like...

Sat, 03/23/2013 - 18:50 | 3366982 toys for tits
toys for tits's picture


Rate Cdad's post here

Sat, 03/23/2013 - 18:57 | 3367029 bank guy in Brussels
bank guy in Brussels's picture

Tyler needs to hook up with some programmer dude

And fix that 'italics monster' that prevents people from getting upvoted ... or downvoted !

A funny glitch, start a post off with italics (often from copy & paste) and your vote count is corzined and confiscated

Sat, 03/23/2013 - 21:42 | 3367411 OccupyTVstations
OccupyTVstations's picture

in the css file, about line 10

blockquote{padding:1em !important;

changing 'padding' to 'margin' ought to do it.

Sun, 03/24/2013 - 09:17 | 3368031 GMadScientist
GMadScientist's picture

Also, you can dig into the HTML and use the links the buttons would've activated, if you really wanna click (like I did). ;)

Sun, 03/24/2013 - 09:14 | 3368013 GMadScientist
GMadScientist's picture

I believe the collateralization of the Cypriot bonds is the link that causes capital structure decimation at the ECB (aka BigTop).

But your many valid points are well taken...

Sat, 03/23/2013 - 18:39 | 3366962 The Duke of New...
The Duke of New York A No.1's picture

Looks like Hugo Chavez was alot smarter than most other Govt. leaders .... good luck to all countries currently trying to (or about to try too) repatriate their Gold hordes back from New York or London.

Sat, 03/23/2013 - 18:45 | 3366985 bingo was his name
bingo was his name's picture

No they will get their gold after adjustments for the 70% storage "tax"on holdings above an ounce upon withdrawal.    

Sun, 03/24/2013 - 09:22 | 3368045 GMadScientist
GMadScientist's picture

Jokes on them...what's 70% of something rehypothecated 180 times?

Sat, 03/23/2013 - 18:40 | 3366967 Goldilocks
Goldilocks's picture

Queen - 'Under Pressure' (4:13)

Sat, 03/23/2013 - 18:42 | 3366972 atomic180
atomic180's picture

Iceland and freedom...

Sat, 03/23/2013 - 18:43 | 3366976 tom
tom's picture

The gist is mostly right, but the collateral is posted to the Cypriot national central bank in return for refinance lending.

There is no collateral involved in Target balances per se. Perhaps what the author means is that when someone comes to a Cypriot bank with an order to wire money out of his deposit to another Eurozone country, the Cypriot bank being short of funds is typically forced to post more collateral to the NCB and take more refinance lending, and then those newly issued euros get sent abroad, adding to Cyprus' Target deficit. So in a sense the ECB's claim on the Cypriot NCB, which is what a Target deficit is, is backed by the collateral that the Cypriot NCB accepted from the bank that wired out the money. But technically the ECB's claim on the Cypriot NCB is a general claim on all the NCB's assets, not just on the particular collateral associated with the latest transfers.

Sat, 03/23/2013 - 18:54 | 3367021 jldpc
jldpc's picture

Thank you for considerable clarification - much appreciated.

Sat, 03/23/2013 - 19:05 | 3367046 machineh
machineh's picture

So if the banks' debt were zeroed out, the Cypriot central bank would need an extra  €2 billion of bailout aid.

Thus, the attack on depositors.

Sat, 03/23/2013 - 20:55 | 3367314 hardcleareye
hardcleareye's picture

Hmm, I do not believe that this deal will "zero's out" the debt... 

It looks to me like they are trying to cure an insolvency problem by incurring more debt but have to come up with "more equity" to qualify for a "bigger loan"..... hence the attack on depositors.  (Typical IMF/World Bank schtick....)

Sat, 03/23/2013 - 19:42 | 3367138 ekm
ekm's picture

You are correct if the law were actually to be respected.

However, europe is currently in a kind of USSR situation, law is whatever Merkel plus other make, and when they can't conclude anything they call the White House to beg them to do something.


So, at this point, collateral calls do not matter, unless allowed by...........IMF, hence White House.

It looks to me that right now, and I mean this literally, RIGHT NOW troika is waiting on Obama's decision, something out of Shakespeare:



Sat, 03/23/2013 - 20:49 | 3367302 hardcleareye
hardcleareye's picture

Thank you for the clarification, this puts a few more pieces of the puzzle together....

Sun, 03/24/2013 - 06:11 | 3367819 Ghordius
Ghordius's picture

excellent explanation of a complex matter - which btw highlights how much the eurosystem is better described as a grid of national banks with a shared facility called ECB - a confederation of national banks

Sat, 03/23/2013 - 18:43 | 3366977 Rogue Trooper
Rogue Trooper's picture

Meanwhile Barroso, this Sunday morning, is reading his leather bound ediiton of "1984" for the thousandth time.  Dreaming of his future role has O'Brien in the 'eurasian' inner circle, while his 15 year old 'turkish house boy' blows him.

... high stakes poker


Sat, 03/23/2013 - 18:44 | 3366979 techstrategy
techstrategy's picture

I've been wondering why the bondholders were not tagged myself.  This should destory whatever trust any member of the genral public has in the financial sector.  it truly is the interest of the banks above all others.  They will do anything to avoid realing losses themselves for fear of cascading defaults.  In the process, the trust deficit is hitting all time highs.

Sat, 03/23/2013 - 18:51 | 3367007 Rip van Wrinkle
Rip van Wrinkle's picture

Do you possibly think it would make it on the manstream media? Do you think the sheep would have a f*cking clue what it meant?


Back to X-Factor.

Sat, 03/23/2013 - 19:05 | 3367045 Skin666
Skin666's picture

+ 100

Couldn't have said it better :(

Sat, 03/23/2013 - 19:35 | 3367116 slightlyskeptical
slightlyskeptical's picture

Actually if they didn't back the bondholders any chance of investment would be gone. Only reason anyone does so is because they feel they have a ECB guarantee. Time to show the financial world that there is no guarantees. Print the Lira and take back your country.

Sun, 03/24/2013 - 09:57 | 3368088 socalbeach
socalbeach's picture

Did anyone understand the author's statement?

"I have been asked, with some frequency, why the bondholders have not been tagged in the Cyprus fiasco. That answer is simple. Most of Cyprus's bonds are pledged as collateral at the ECB or in the Target2 financing program."

The bonds that should have been "tagged" are liabilities of the bank, like customer deposits, so how can they be pledged as collateral?

Sat, 03/23/2013 - 18:47 | 3366987 Joebloinvestor
Joebloinvestor's picture

Like a vampire, drain it and leave a corpse.

The EU is gonna be on one bad receiving end when Cypru returns with a vengence.

Anyone who has any money in an EU bank after Tuesday deserves the loss.

Sat, 03/23/2013 - 18:47 | 3366990 DirkDiggler11
DirkDiggler11's picture

I think at this point they are tired of the game, and have gotten sloppy. Mistakes have now been made that cannot be taken back. GAME ON, he who can shoot the straightest and re-load the fastest will win.

Sat, 03/23/2013 - 18:47 | 3366991 nmewn
nmewn's picture

All we need now is Vito to bust through the door and break some legs with his baseball bat.

This is high stakes finance bitchez!

Sat, 03/23/2013 - 18:48 | 3366992 Getting Old Sucks
Getting Old Sucks's picture

I don't know, but I keep reading figures of 10, 20 30 billion dollar or euro figures and wonder.  This is peanuts in the U.S.  Is it possible that the U.S. could just print a couple of hundred billion and buy all of the EU? 

Sat, 03/23/2013 - 19:11 | 3367059 machineh
machineh's picture

No need, really.

Cyprus can't possibly exploit its undersea gas resources with no capital. Deepwater drilling and delivery infrastructure will cost billions.

U.S. energy companies will demand, and get, nearly all the equity in Cyprus gas drilling joint ventures.


Sat, 03/23/2013 - 20:06 | 3367192 delacroix
delacroix's picture

noble energy, out of houston, already has their foot in the door.

Sun, 03/24/2013 - 06:14 | 3367825 Ghordius
Ghordius's picture

"is it possible that the U.S. could just print a couple of hundred billion and buy all of the EU? "

you are describing the great power of global reserve fiat currency status - the only limiting factor is how much you can do it without getting the others to show their fingers to you, and so you have to do it slowly... since 1971

Sat, 03/23/2013 - 18:50 | 3367000 jldpc
jldpc's picture

It goes like this: Is Merkel more electable if:

1. She kicks Cyprus butt; and cuts off their ability to cause harm in the future - no more ofshore laundering; or

2. At the 11:59 hour the ECB/IMF Troika comes up with some last minute (literally) "we saved their asses in the name of the Greater Europe" (not including Russia or Turkey or Egypt or Ukraine - FOREVER!

It's all about politics; nothing more, nothing less ... move on. Tempest in a teapot. all the exagerated hoopla of mass destruction is never going to happen. It gives even the Italians someone to look down on. The mainland Greeks already know they are lower than whale shit, the lowest shit in the ocean. And this is get even with their cousins - who blew themselves up literally a few years ago - because they were too leniant on the Greeks - who even now have never laid off anyone on a national, state or local government payroll. Time to show the jackboot on someone....the littlest shits in the group. Is there any wonder why we had to bail them out twice in the last century, and ourselves go broke defending thier asses during the cold WAR. Really; we should stop talking about them, ignore them, and let them destroy each other - it is natural for a German to want to hurt someone. Read history of western Civilization - they are not nice people, and should never be allowed to congregate, and should never be left alone. Of course only the SS and not every swinging dick was responsible for the events of the 1930-40s. Yeah and our liberal do gooders believe in the goodness of man.  

Sat, 03/23/2013 - 19:49 | 3367153 ISEEIT
ISEEIT's picture

Weird huh? Almost as if in fact they where merely fucking with us huh? Some 'people' actually believe that President Obama is like some kind of totally fake, like strange dude or something like totally outthere like that.

Weird huh?

Sat, 03/23/2013 - 20:34 | 3367250 Croesus
Croesus's picture

"it is natural for a German to want to hurt someone. Read history of western Civilization - they are not nice people, and should never be allowed to congregate, and should never be left alone. Of course only the SS and not every swinging dick was responsible for the events of the 1930-40s. Yeah and our liberal do gooders believe in the goodness of man.  "

That's about the most ignorant, uninformed, and blatantly dumb comment I've ever seen posted on the net, ANYWHERE.

I have to confess that I'd be curious to know your lineage. I don't know what scares me more: Evil, diabolical banksters, or the fact that halfwits like you breed, and vote.



Sun, 03/24/2013 - 09:29 | 3368060 GMadScientist
GMadScientist's picture

This concludes our "What People With Orange Tans Think" segment of the show.


Sat, 03/23/2013 - 18:51 | 3367002 sitenine
sitenine's picture

Yup, Cyprus matters, great post Tylers! Moot point in the long run though, IMHO. So what if Cyprus is 'saved' short term? The damage caused by each successive such 'save' is getting exponentially worse. The best anyone can do now is to be prepared for the coming paper burn fest. Call it a 'debt jubilee' if you like.

Sat, 03/23/2013 - 19:07 | 3367049 tom a taxpayer
tom a taxpayer's picture

The Rubicon runs through Cyprus.

Sat, 03/23/2013 - 18:53 | 3367020 ISEEIT
ISEEIT's picture

So I don't mind being the stupid one here...How might the terms rehypothecation and derivative become relevent?? At all/Not at all?

Just wonderin'

Sat, 03/23/2013 - 18:57 | 3367026 Atomizer
Atomizer's picture

This is the same problem on a different scale. Tweaking the crisis yields the same banking return.  Enjoy!


GM Commercial Claims They Repaid Loan

Sat, 03/23/2013 - 19:01 | 3367038 NoWayJose
NoWayJose's picture

Cyprus would be far better off guaranteeing all deposits and defaulting on all their bonds at the ECB. Issue a statement that you are keeping the Euro and staying in the EU so as to make the EZu vote on whether to kick you out.

Sat, 03/23/2013 - 20:44 | 3367288 hardcleareye
hardcleareye's picture

Unintended consequences can be a bitch.... and pay backs are hell....

Sat, 03/23/2013 - 19:05 | 3367047 Cacete de Ouro
Cacete de Ouro's picture

$11.6 billion guaranteed collateral at ECB....   how is this figure derived if its not public knowledge?

Did a taxi driver driving the Troika from the airport happen to hear it the 'big number' being  flung around in the taxi by tipsy Troika officials?



Sat, 03/23/2013 - 19:25 | 3367089 machineh
machineh's picture

Good question. The ECB's TARGET report for 2011 says (page 9):


"The claims or liabilities that relate to TARGET2 are regularly published by all Eurosystem central banks as part of their balance sheets."

Haven't yet found the TARGET balance at the central bank of Cyprus. But it can't be kept secret.


Sat, 03/23/2013 - 20:42 | 3367283 hardcleareye
hardcleareye's picture

When you find it send it to Tyler as a hat tip...  I for one would like to see it but coming back to old posts is a pain....

Sat, 03/23/2013 - 19:08 | 3367053 Tsar Pointless
Tsar Pointless's picture

I feel like, somehow, we've gone back in time, and it's now June 1914.

Is Cyprus playing the part of Archduke Ferdinand?

Sat, 03/23/2013 - 19:15 | 3367072 Zgangsta
Zgangsta's picture

Call the EU's bluff, and give every bank holder one Cypriot Lira for every Euro depositied, then enact a slew of Russia friendly tax laws.  THen, instead of a haircut, everyone makes a fat profit in due time.

Sat, 03/23/2013 - 20:41 | 3367277 hardcleareye
hardcleareye's picture

If only it was that

Sat, 03/23/2013 - 23:21 | 3367556 W74
W74's picture

It could be.  Give the Euro back it's money (after the exchange) and take a shit on the pallets before they load 'em onto the plane.  What a good idea.

Sat, 03/23/2013 - 19:30 | 3367105 mind_imminst
mind_imminst's picture

OMG! 11.6 billion. Is that all we are talking about here. Ben Bernanke sneezes and 11.6 billion ends up in the tissue. This is pocket change. The FED will open up some swaps lines or the discount window, whatever. They did it back in 2008/2009 and bailed out a whole crap-ton of Euro banks. It will happen again. The ponzi must go on.

Sat, 03/23/2013 - 19:49 | 3367152 knukles
knukles's picture

So Benji plays little Dutch Boy witH his finger in the Dykes (Angie, Christine) and extends a swap line callable on demand which will be swapped into a Capital Note with a 30 year maturity and zero coupon, capital of ECB intact, it prints enough Euros to choke the proverbial goose.


I keep comin up with this shit I need a Goldilocks partnership FFS

Sat, 03/23/2013 - 19:58 | 3367180 toys for tits
toys for tits's picture

In many comments people seem to believe that this is a one-time demand of the Trioka.  I guarantee it isn't. In fact ZH already reported that they raised the demanded amount from 5.8 to 6.7 billion euros.  That's 900,000,000 euros that they're now short even if they could steal their depositors' money.

Cyprus needs to break up with its abuser that tricked them into getting into Greek bonds and is now trying to fuck their industry, which could only be rebuilt if they don't steal the depositors' money, but default instead.

Sat, 03/23/2013 - 20:39 | 3367272 hardcleareye
hardcleareye's picture

I concur with most of your insight but differ with Cyrus' ability and potential to rebuild their "banking" and "financial" industry, those days are over....


Sat, 03/23/2013 - 21:35 | 3367402 toys for tits
toys for tits's picture

With cheap enough taxes it could rebuild, (only the state banks are in trouble), as long as it doesn't steal depositors' money.  

Iceland's been able to rebuild its banks as well.

Sat, 03/23/2013 - 20:03 | 3367189 WallowaMountainMan
WallowaMountainMan's picture

"Further, not all of the deposits in Cyprus are in troubled banks. There is UBS, several Israeli banks, a number of French banks et al that are not troubled and still Europe wants to demand that the bank accounts in those relatively healthy banks have depositor's money taken out of them to pay for the woes of the government."

originally, the ecb said only insolvent banks would be hit.

i stand by my hunch that deal will eventually be the original one offered by the ecb.


the making public of tapes of the negotiation, showing the pres of cyp to be the one who sacrificed the under 100k crowd, thereby blowing his chance to get a deal done in the first place.

not that there are going to be any winners here. the ecb is fully capable of blowing this out of the water, and, while not shooting themselves in the foot, will skip that body part and start with something slightly below their waistline.


Sat, 03/23/2013 - 20:14 | 3367207 delacroix
delacroix's picture

how long has cyprus been in the euro? 5-6 years? did goldman help them with their bookeeping?

Sat, 03/23/2013 - 20:46 | 3367282 Kirk2NCC1701
Kirk2NCC1701's picture

Merkel: "Ordnung must sein!" kinda like... "I will have order!"

Center-right and right wing German voters applaud, Center-left and Left wing voters don't object.

Sat, 03/23/2013 - 20:46 | 3367299 Cacete de Ouro
Cacete de Ouro's picture

This link says Cyprus' bonds were rejected as ECB collateral last year after their rating fell to BB. So now the general rating is way below even that:

It does say in a bailout situation that this discretionary rejection would be overlooked, but as of now what Cyprus collateral is ECB actually holding?

Sun, 03/24/2013 - 12:02 | 3368523 ekm
ekm's picture

Law does not matter any longer

Sat, 03/23/2013 - 21:53 | 3367435 OccupyTVstations
OccupyTVstations's picture

I'd like to to ZHers contribute to creating a powerpoint style slideshow (every1 make an image) on the worldwide financial ponzi that has the whole world on the verge of bankruptcy.

Then I want to celebrate upon seeing the news stories that develop after this slideshow is presented at Veterans cancer wards... you know where the guys have only a few months to live.... maybe one vet per ward would have the guts to go postal on those that really need to feel it.

Timmy, Ben, Jamie, Lloyd, that BofA douche I forget his name, Angelo, Koch Bros, all Politicians in DC, etc... not to mention the lying media mouthpieces that have let them get away with it- every board member, CEO and anchorDouche of every network.

Sat, 03/23/2013 - 22:34 | 3367505 Quinvarius
Quinvarius's picture

At least JPM can bury some of the losses they are hiding here.  They can just say the ECB took it all.

Sat, 03/23/2013 - 23:10 | 3367546 Pandorable
Pandorable's picture

Let Cyprus default and wipe out the ECB. It would serve those hypocritical, greedy entitled EU monkeys right.

When governments can take whatever they want from's time to find John Galt.

Sun, 03/24/2013 - 13:14 | 3368761 Vendetta
Vendetta's picture

Going Galt has been long overdue, unfortunately there are far too many who believe in their respective 'parties' being 'the good guys'

Sat, 03/23/2013 - 23:10 | 3367547 Pandorable
Pandorable's picture

Let Cyprus default and wipe out the ECB. 

Sat, 03/23/2013 - 23:52 | 3367585 Radical Marijuana
Radical Marijuana's picture

What matters is the SIZE of the House of Cards, or the NUMBER of Dominoes that have been set up!

The whole financial system is force backed frauds. The financial system was based on corrupting governments covertly, through the application of the methods of organized crime, to agree to legalize Huge Lies, and legalize the Violence to back up those Lies. Thereby, almost everyone in the whole world was forced to accept building their entire lives on top of, or at least around, triumphant financial frauds, in the form of fiat money, made out of nothing, as debts, which system was able to BOTH be privatized, and globalized.

After that legalized counterfeiting was achieved, it automatically found every possible excuse that it could to maximize itself. More and more money made out of nothing was created, with less and less collateral actually behind it. Indeed, the only real collateral was the military and police of the governments, to provide the legalized force to back up the legalized frauds, being operated by the private banks, which were enabled to force everyone else to accept living inside of that runaway triumphant system of financial frauds, dominating their whole lives.

Given that system, the only ways to be successful were to go along with it, and take advantage of those frauds, or else be left behind in the dust of that runaway fascist plutocracy juggernaut. There is no rational relationship between the fiat money, and its supposed "collateral."  The ONLY actual collateral was the ability to threaten people with legalized enforcement, if they did not agree to go along with the legalized counterfeiting, while simultaneously offering fantastic profits to those who did take advantage of the established systems of fundamentally fraudulent financial accounting.

THAT is the real problem!  It was always actually a combined money/murder system. It was always the Fraud Kings controlling the governments that were derived from the history of the War Kings, in order to operate civilization as a system of organized crime, with the entire economy based on runaway financial frauds, building up a social pyramid system House of Cards, while laying out an enormous number of Dominoes.

If those financial frauds start to collapse, the problem is that almost the whole thing is one enormous House of Cards, with funny money debts exceeding the real planet Earth by at least an order of magnitude, if not more. As well, when the Dominoes start knocking each other over, the result risks the weapons of mass destruction, that became the basis of the power of the War Kings to back up the Fraud Kings, also exceeding the real planet Earth by at least an order of magnitude, if not more. Basically, we have built a global system based on legalized lies, backed by legalized violence, of absolutely astronomical size. Therefore, more truth threatens to start a collapse of equal proportions, followed by similar magnitudes of mass murders, if the weapons of mass destruction ever start being used, to attempt to continue to back up the previous systems of financial frauds.

MEANWHILE, none of what I have written above has a reasonable hope in hell of being agreed with, nor understood, by the vast majority of the people.  The runaway triumph of government backed financial frauds has created a completely crazy civilization, and almost nobody within that situation is able to understand it, and therefore, there are no feasible solutions to these problems. ... Rather, we are reduced to being able to do nothing much more than watch and wait, and wonder how the House of Cards will come down, and which Dominoes will knock down others ...

The basic laws of physics with respect to civilization as an energy system are practically banished from our culture. Instead, everything we have done was based on triumphant fraudulence, building up and up an astronomically sized pyramid scheme House of Cards, and setting up a global system of Dominoes ready to start knocking each other down! SO, OF COURSE IT MATTERS IF ANY PERIPHERAL CARD FALLS OUT, OR DOMINO IS KNOCKED DOWN, SINCE THERE IS REALLY NO COLLATERAL, OTHER THAN THE THREATS OF MASS MURDER, TO BACK UP THE FINANCIAL FRAUDS.

Sun, 03/24/2013 - 00:10 | 3367619 Tunga
Tunga's picture

I have a meteorite and I know how to use it. 

Sun, 03/24/2013 - 01:03 | 3367674 Manipuflation
Manipuflation's picture

Faith No More.  I am currently trying to figure out when I officially lost faith in the system.  It's been a long time now.  I am not sure that I ever had any faith, of any sort, to begin with.

Sun, 03/24/2013 - 13:36 | 3368831 Vendetta
Vendetta's picture

My 'faith' in the system ended in and around February 2003.

Sun, 03/24/2013 - 03:37 | 3367756 luckylongshot
luckylongshot's picture

The question this raises is why the Rothschilds are not simply getting the ECB to create whatever money is needed to prevent the people of Cyprus having their savings stolen?...For the ECB to be getting 100 cents in the Euro back while innocent Cypriots are losing their sayings is obscene.

Sun, 03/24/2013 - 05:41 | 3367811 css1971
css1971's picture

Taking money from a citizen's bank account by fiat is little more than theft as it is delineated as private property and is the person's own money and not a bond or stock or a security of some sort with the normal risks appended to any sort of an investment.

Eh... Yes it is.

Certainly under English law, and that seems to be the template for much of the world's banking.

Carr vs Carr (1811)

When you put money in a bank account it becomes the bank's money, not yours. You own a liability of the bank. i.e. an investment.

Sun, 03/24/2013 - 06:13 | 3367823 Mark Urbo
Mark Urbo's picture

So the Cypriot citizens own a "liability" (i.e., investment) in an insolvent bank (pick a Cyprus bank), which is part of an insolvent banking system (Cyprus), which is being squeezed by an insolvent central bank (ECB), which is part of an insolvent banking/financial union/system (Euro).


Is that correct ?

Sun, 03/24/2013 - 06:23 | 3367832 Ghordius
Ghordius's picture

quite correct, up to the part that the ECB is currently not on it's way to become insolvent (it has the equity to survive Cyprus) and on the whole the debate if the banking systems (plural) of the eurozone are solvent or not is still raging on - and actually depends on many factors still in the future - including the fate of the Anglo-American banking systems

Sun, 03/24/2013 - 08:02 | 3367899 AnAnonymous
AnAnonymous's picture

'Americans' have this talent: make up wild, wild claims.

I am reminded of Mr. Draghi's, "We will do whatever it takes" speech but this was not what I had thought it meant. The word "bullied" comes to mind as well as the word "vengeance."

Suspension of disbelief. That 'american' request from one's readers that the reader does not thinking of bullying when thinking of 'american' behaviour.

An 'american' stated that they would do what it takes and you should not think of bullying. 'Americans' are bullies at heart. Been since that way since 1776, July,4th.

JKC, what you must read coming from 'americans'

One can argue to know if bullying should have come up first when thinking of what an 'american' means when it is stated "will do what it takes"

But not thinking of bullying?

Another dip in the wonderful world of fantasy as imposed by 'americans' on humanity.

Welcome to an 'american' world. It is a cosy place to live, you'll see.

Sun, 03/24/2013 - 18:15 | 3369774 TheFourthStooge-ing
TheFourthStooge-ing's picture


JKC, what you must read coming from 'americans'

Spamming some advertising for your Just Killed Cat Chinese citizenism fastfood restaurant franchise?

Woooooo, such duplicity.  Will you give telling on river pig pork special or do you cloud the airs with good old Chinese citizenism rhetorics?

How self centered.

Sun, 03/24/2013 - 08:05 | 3367903 AnAnonymous
AnAnonymous's picture

Oh, yes, the ECB and many other 'americans', especially those who are servants to We The People aka the 'american middle class, know the importance of Cyprus.

It gives a perfect opportunity to justify their job.

It gives them work. It gives them material to back up their claim to their piece of 'american' consumption.

Past that, Cyprus' meaning is quite exaggerated.

Sun, 03/24/2013 - 18:19 | 3369783 TheFourthStooge-ing
TheFourthStooge-ing's picture

Cheap propaganda as usual.

Chinese citizenism inherent lack of quality propagated. Again.

Sun, 03/24/2013 - 08:10 | 3367908 AnAnonymous
AnAnonymous's picture

Taking money from a citizen's bank account by fiat is little more than theft as it is delineated as private property and is the person's own money and not a bond or stock or a security of some sort with the normal risks appended to any sort of an investment.

No kidding. What next? Telling that stealing entire continents is theft?

Well, why not just paint the event the same colour 'americans' are used to paint it when they thieve (that is all the time)?

Just call it advance for humanity.

That is what 'americans' call it when they perform the trick.

And insolvent accounts compared to the theft of entire continents...

Maybe that is the point, maybe those 'americans' should think to thieve much more. At this point, their theft will paint the same colour as 'americans' are used to painting.

Sun, 03/24/2013 - 10:18 | 3368243 AynRandFan
AynRandFan's picture

What in the sam hell are you talking about?

Sun, 03/24/2013 - 09:58 | 3368187 torak
torak's picture

Rehypothecation, Baby!

Sun, 03/24/2013 - 10:37 | 3368299 deepsouthdoug
deepsouthdoug's picture

ECB and the Germans dictating to Cyprus is like this  clip

Do NOT follow this link or you will be banned from the site!