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Rampapalooza As Cyprus-Troika Reach Deal (Updates)
UPDATE: It appears the 'deal' to default/restructure the banks has been designed to bypass the need for parliamentary votes, since it is theoretically not a tax.
While we have little color on what kind of carnage the President of Cyprus had to accept to his fellow countrymen, the news is that :
- CYPRUS, TROIKA REACH AGREEMENT IN PRINCIPLE, EU OFFICIAL SAYS
- DEAL MADE AT DINNER WITH DRAGHI, LAGARDE, VAN ROMPUY, BARROSO
The terms, unsurprisingly what zee Germans wanted, are:
i) Laiki to be wound down;
ii) Bank of Cyprus to survive but with deposit haircuts of up to 40% for the uninsureds, and
iii) deal would see secured deposits in Laiki moved to Bank of Cyprus.
In other words, a deal far worse then the original on proposed by the Eurogroup last week - when the banks still existed. The key appears to be the 'saving' of the insured depositors (crucial to avoid a pan-European bank run) and the crushing of the 'whale' depositors.
A more granular breakdown of the deal's "accomplishments", but with the same result for large depositors, via Reuters:
- Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework.
- Laiki will be split into a good bank and a bad bank. The bad bank will be run down over time.
- The good bank will be folded into Bank of Cyprus (BoC), using the Bank Resolution Framework, after having heard the Boards of Directors of BoC and Laiki. It will take 9 billion Euros of ELA with it. Only uninsured deposits in BoC will remain frozen until recapitalization has been effected, and may subsequently be subject to appropriate conditions.
- The Governing Council of the ECB will provide liquidity to the BoC in line with applicable rules.
- BoC will be recapitalized through a deposit/equity conversion of uninsured deposits with full contribution of equity shareholders and bond holders.
- The conversion will be such that a capital ratio of 9 % is secured by the end of the program.
- All insured depositors in all banks will be fully protected in accordance with the relevant EU legislation.
- The program money (up to 10 billion Euros) will not be used to recapitalize Laiki and Bank of Cyprus.
As Bloomberg further clarifies, uninsured depositors, or those with over EUR100,000 in savings may be completely wiped out: "Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said."
Farewell Russian oligrach money. We hardly knew ye.
S&P 500 futures and EUR are surging, Gold is dropping modestly.
We await final confirmation of the final terms of the final deal once the Cypriot people wake up (and don't forget the ECB 'standard of living' rules).
The Cypriot Parliament still has to vote for this - and not one of them voted for it last week.
Filling the 'Cyprus' Gap
Treasuries sold off- 10Y back to 1.945% (+2bps) and 30Y 3.17% (+3bps)
This is far from over...
So let us get this straight, we have no further information on the actual terms of the deal than we did on Friday afternoon; the government (who rejected the deal last week) has no details of the deal yet; and the actual impairment for the depositors is far worse than last week's rejected deal; and the market is rallying...
It would appear the week was spent sorting through the names of bank accounts in each bank and the one with the most ending in '-ov' is to be wound down...Laiki
Step 1 appears to be 0500GMT Eurogroup Meeting (as per Holland's Diesel-Boom) agreement...
UPDATE: There is talk that there may be no need for the government to vote for this - since it is not a 'tax' but a bank restructuring. It seems they have kept it in the bankers... the ECB (in its independent way) tells the Cypriot NCB what it should do, the Cypriot central bank then restructures its bank how it sees fit - good/bad bank and haircuts where it sees fit - this then gets around need for vote from government AND any possibility of a European Union law (on taxation) being broken...
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market seems to have forgotten that the Cypriots will agree to pretty much anything for an early night. voting on it, not so much.
This is just thrill addiction on the part of traders. A succession of near death experiences that upon survival lead to manic behaviors. Each additional near death experience has less down side and greater upside with survival. I wonder how big the disaster would have to be to actually cause reality to return to the markets. It looks like a suicide pact, A thelma and Louise. The markets will continue to rise until they burn their waxen wings on the sun and plummet to the earth. Knowing my luck they will likely land on my house.
Cypriot Parliament chooses between whether the EU kills their country or whether the Russian mafia kills those who vote for the deal.
The important choices were made years ago. Only the chickens coming home to roost now. They chose poorly.
Im wondering if this deal is as good as its being told, and like all the other BANKster deals have been made, on a weekend, i.e. Lehman, how good can it truly be?
..i guess it depends on for 'who' it benefits
Just watching RT, and they interviewed this rather somber fellow, a Mr. Vladmir Kutyurhedovsky, whose only comment was, "We'll see who is taking big haircut".
SYDNEY (MarketWatch) -- Cyprus and its institutional lenders have reached a bailout deal, according to reports citing European Union officials. As part of the agreement the country will impose a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros ($129,760) in their accounts, Agence France Presse reported. The deal followed a weekend of tense meetings between Cyprus and the Troika -- the European Commission, the European Central Bank and the International Monetary Fund -- to reach a deal before a Monday evening funding deadline.
http://www.marketwatch.com/story/cyprus-troika-reach-bailout-deal-reports-2013-03-24
Not only is the IMF purposely stealing savings from citizens who did not cause this crises by targeting accounts of 100,000 euros or more, but it is doubly criminal to select accounts with percentages so high they catch billionaires and then swoop down so low ruining the lives of the commom man, bankrupting small businesses and cutting off professionals’ futures.
What’s going on here? Bankers who target banking accounts at the point of a gun for any reason should be charged with a felony, but to go after the small man’s savings is a serious crime against humanity.
The average Cypriot's salary is 2,158 euros monthly, with an accountant earning $24,497, an IT manager $39,298, a civil engineer $37,549, and an HR manager $43,496 - as of March 14, 2013. Many of these people will be hit.
I ask again. What goes on here? Is it the old goal of the U.S.S.R. resurrected to destroy the middle class to try for another worldwide socialist omelet?
Governments of the people, by the people and for the people have been subverted by a gang of International Insiders determined to destroy freedom and establish an all-powerful worldwide government. But, first, just as Lenin did, they must destroy the middle class. Only by destroying Europe’s and America’s true middle classes, the small businessmen and professionals who employ 50-70% of all workers (that class that falls between the upper class and the working class), can they remove the main obstacle to their power.
And so they have.
Ironic, isn’t it that the United States, the land of the “free,” is the largest financial contributor to the IMF and has substantial influence over IMF lending policies? In 2009, Obama approved a $108 billion credit line for another IMF crisis fund to be paid by U.S. taxpayers.
Wrote Sen. Jim DeMint in 2010: “Right now, 17 percent of the IMF funding pool that the $40 billion bailout (for Greece) is being drawn from comes from U.S. taxpayers. If that ratio holds true, that means American taxpayers are paying for $6.8 billion of the Greek bailout.” And that was before the additional $108 billion extra that Congress approved for the IMF had even gone into effect.
The Greek bailout that was needed courtesy of Goldman Sachs
http://www.reuters.com/article/2013/03/12/us-usa-imf-reforms-idUSBRE92B0...
With the world in financial crisis, who on earth would push the United States to further implode its sovereignty at the expense of the people? Well, hooligan, you've provided us with a few Americans who want to see international domination of America made permanent, with President Barack Obama's blessing. And here, from your link, they are:
In a letter to congressional leaders on Monday, more than 130 academics and global policy pundits warned that failure to authorize the IMF funds could diminish U.S. influence in the global lender...The reforms need congressional approval because they involve shifting and making permanent a $65 billion U.S. contribution to an IMF crisis fund.
The letter backed “a request by the Obama administration to approve a permanent increase in U.S. funding to the International Monetary Fund.”
Non-approval was “a setback for IMF reforms to boost the voting power of emerging economies. The U.S. authority is necessary to finalize a historic deal agreed by IMF member countries in 2010, that would make China the IMF's third-largest voting member.
“Signatures of the letter included Tim Adams, former under-secretary of the U.S. Treasury; Martin Baily, ex-chairman of the Council of Economic Advisers; Ken Rogoff, former IMF chief economist and now at Harvard University; John Sewell, former president of the Overseas Development Council; Jo Marie Griesgraber, executive director of New Rules for Global Finance; Gawain Kripke, policy advisor for Oxfam American; Christopher Padilla, former under secretary of commerce for international trade; Robert Richter, producer of The Money Lenders; and James G. Wallar, ex-U.S. Treasury attache to Iraq, EU, Afghanistan, Russia and Germany.”
Earlier, “19 high-level U.S. officials, executives and legislators wrote a similar letter, also urging lawmakers to pass the legislation to maintain U.S. leadership in the IMF.”
So they make an announcement that there is a deal to keep the wolves off their scared scent. Try to buy time and cool out the marks. Very feasible.
Tin Hat Bonus: Let Ben in on the deal and PPT to help ramp some convincing statistics. Buy time, buy time.
I hope they notified Gazprom and Putin's assassins that it's all BS.....what if the memo got lost? OOPS.
Yes, trying to buy time, but the sense I get from the Guardian blog is that the charade is unraveling. The EU and IMF have just dropped their pants, and now everyone paying attention has a pretty good idea where this is going, and savers around the world have been put on high alert.
Check out this unbelievable quote posted at 2:40GMT: "He [Djisselbloem] also stresses that it is important to recognise that there has been no bank run."
Well gee, they implement first a 260 euro, then a 100 euro ATM withdrawal limit, keep the banks closed, and then make the claim that there is no bank run? I think Djisselbloem should be ashamed to have made this statement, as it clearly demonstrates delusional thinking. Take away the capital controls, and Cyprus will expose the central fallacy of fractional reserve banking. The money is not there.
You missed his point, which was, "We got all of it."
Today's meeting with the Troika is as much a negotiation as was the inquisition.
Re ..the government (who rejected the deal last week) has no details of the deal yet.
The Nancy Pelosi solution: Let the govt. first agree to the deal and pass it - then they can read what's in it.
Where is Greenpeace? It looks like lots of 'whales' will be slaughtered on the beaches of Cyprus this week.
Cash haircuts - you started out with a number 8, but they like you better with a number 5, or maybe 4. How does high and tight sound? It's so much easier to wash a number 1 or 2, so maybe that's what you need. "The Trimmer" is coming soon to a theater near you. No? You live in a country that would never do that? Really? There are laws against it? Hmmm... I'm gonna need a thicker mattress.
Two-four
2 on the sides and 4 on the top
If anybody needs to know how far the markets have sunk, they are buying futures and the euro currency on a 40% confiscaton of deposits. Just incredible really, in fact I still can't get my head around it. I mean I knew it would happen but when you think about it's pretty crazy.
The people of Cyprus are losing and the bankers are winning. And the markets went up… Which means that the markets do not reflect the economy, and the markets do not reflect civilization. It means the markets are owned and operated by the bankers. They are banker markets.
Fortunately, that is not a permanent situation. That is a last chapter situation. All the people of Europe are not going to sink. It’s going to be the political system that sinks.
The people are now aware they have for too long been out of touch with their political leaders; they need to force it. This is a sea change. Regardless of what the deal is, the fact that the markets go up explains it. It was a banker market, a bank crisis, a banker solution and the bankers punished the innocent people because of it.
It doesn’t mean things are getting worse, it means things are getting closer to breaking.
The IMF and the contributions that the US taxpayers made, to foreign nations, have nothing to do with the US except they were leverage for the bankers. US taxpayers are giving the bankers leverage for their foreign operations and look how they used it. Lagarde is applying the screws to Cyprus because she is able to do so, because she has the US taxpayers behind her.
No she has the U.S. corporate/government alliance behind her who has been stealing from U.S. citizens all along. It would appear, to date, the European populace is taking it in the same manner the U.S. populace has been taking it, by bending over.
Why shouldn't someone buy a market that's guaranteed to get a higher bid no matter what? As Hank Paulson screamed, "If we don't immediately provide 500 biliion the Guaranteed Investement Contracts will go bust. They'll be rioting in the streets." Yep, you just know those guys with GIC's are the rioting type.
Here's the part I don't get...in the other 'peripheral' situations, the pound of flesh from the middle class has always been taken via presumed future tax obligations, as in 'austerity' programs. The banker scum get paid off up front, through the bailouts, which implicates core Euro citizens, and then the 'beneficiary' government is supposed to make up for it over time implicating their own citizens as well.
Why in Cyprus all of a sudden is it simply 'Stand and Deliver' writ proper, a heist of the locals plain and simple?
Doesn't make any sense, and will not work, politically, socially or any other way. It's like Germany is looking into a dark mirror, seeing their own story ('sorry citizens, but you are liable for our corruption because you didn't revolt soon enough, now pay up') and is projecting it onto the weakest kid in the playground.
That, or it's time to put Europe into the ditch in a big way, on purpose. 'Neath the Easter Full Moon under the Dual Papacy.....how strange......things that have not happened for a thousand years......
Thanks James, very interesting indeed.
I would never have known to look up such a thing.
"Identification of Babylon and Antichrist with the Roman Papacy was later also a conviction of Luther, Calvin, and ALL Protestant Reformers. The souls kept 'neath the altar know this truth, and The "SUN" with her would be God, the Light Himself, and the moon being under her feet indicates "mastery"
http://www.israelect.com/DivinePageant/revelation.htm
They didn't approve TARP the first time either. Script says you're supposed to pretend yielding to the banksters is a struggle.
Ooh, no vote needed! Well played!
Sounds just like a plan designed by unelected central bankers...
"UPDATE: It appears the 'deal' to default/restructure the banks has been designed to bypass the need for parliamentary votes, since it istheoretically not a tax."
Holy shit, they don't even pretend anymore.
Democracy is the mortal enemy of financial stability!
winner winner, chicken dinner. This is the culmination of every. fucking. thing. Every democracy voted for good and hard.
No, they dont pretend anymore. Its now BOOYAH, in your face blatant, kick you in the groin, step on your face, then urinate..
... we left Kansas a long time ago
Mord this was the stipulation behind closed doors so the Cyprus bankers and politicians could keep their heads and their families after ripping off the Ruskies. Otherwise this was not going to fly!
The russian Mafia plays rough.
LOL. This was a MEAL not a DEAL. No one on Cyprus is going to vote to have themselves offed by the Russian mob.
The fact that here is any depositor haircut means these idiots still don't get it.
It's true that parliament wouldn't have to vote if it was a bankruptcy, but they also wouldn't be scalping he depositors first either.
These asshole fuckfaces are making policy to fit the occasion.
Don't know what the Troika had, but the Cypriots got served bullshit at that dinner.
They probably stuck Cyprus with the dinner tab.
That would assume the shit cost less than 100€ per plate or there is a back door to the capital controls (who woulda thought?)
Merkel's message to Cypriots, "Your dreams of living the easy life of a bankster is over! Now get back to your olive groves and anchovy nets!"
If there is one sure thing to get the S&P to rally, it's the theft of bank deposits.
I love this market!
All hail the glorious Soviet European Union!
Where else you going to put your money? The bank?
When it gets serious, you have to lie... then suspend democracy.
The Cypriot Parliament should vote to eliminate their own Central Bank!
True.
That's the same vote many in the US want to end the Fed.
The sheep always run from the wolf until they find themselves cornered with no real escape. Then it comes down to hoping the wolf gets his fill before its their turn. If they would have at least attempted to go after the wolf, at least he might have thought twice the next time, but this game is way too easy for them.
And here we are, bleating in the corner.
You don't have to out-run the wolf, only the fat guy.
Love that one, the old "quicker than the bear" story.
You just got to be quicker than the other guy, same in this game.
Don't be the bag holder.
"There is talk that there may be no need for the government to vote for this - since it is not a 'tax' but a bank restructuring. It seems they have kept it in the bankers"
This is as anti democratic as it can get. The USA is home to czars and regulation types too. Most people will succumb and wait it out, a few will rebel and they will be called insurgents, when they are really attempting to gain is the dignity and liberty they thought they once had.
I am on the side of the rebels. I am not a murderer and will not participate in murdering of innocents, that's Obama's and the CIA's job. I will do anything in my power to stop what is going on and not contributing or following their dictates is just one avenue.
The fact that the bankers have become so desperate to take action like this and deliberately by-pass parliament shows just how truly terrified the bankers must be if this goes to a vote. I think they must truly believe the whole house of cards must be about ready to collapse so they have to do ANYHING to protect it. As so many have said, they aren't even TRYING to hide it anymore. It's as blatant as can be. No rules, no law, only bankers win and everyone else loses. Revolution is brewing.
Vote or no vote, a %40 haircut for the Russian Mafia? This is not over by a long shot.
Yep. The words, "pretense for war" keeps swirling around in my head. The situation is definitely going to run deeper and deeper. Prepare for extreme violence in Europe.
That's 'pretext for war'.
But who cares about such technicalities. It's probably war however you spell the causes.
"Crush the Whales" My god I love it! This will go over well with the Russians and their Whale deposits. I bet all hell is breaking lose in the middle of the Moscow early morning. Flight to Cyprus anyone?
This deal will raise all hell, though it seems to calm the prospect of European bank runs. But, never say never!
Counting down to the Russian counter proposal.
Perhaps their shiny new warm water naval port is going to cost a little more than intially anticipated.
So, they just took a word out (tax) and now they can do whatever they want? Why did Anastasiades have to attend?
Anyone expecting another Assad (rumor right now) event this week in Cyprus?
If the ATM's find out important they are, they will go on strike. Smart technology bites.
Good news comrades! The ministry of plenty has just announced the ration of victory chocolate has been increased to 25 grams per week!
If the Cypriot people do not rise up and protest Malcolm X style, then they deserve everything that they get.
There will be no depositor haircuts. I believe the Parliment will vote it down. NO DEAL ....JMO
And that means the Russians won't be flying over to raise hell . DAMNIT......
We should start a euro Flag burning in sympathy with Cyprus. It isn't againt any nation burning the euro flag, it is a sign that central government considers itself too big to fail when it is too big to be allowed to exist.
gold, dollar, euro, dow futures are all little changed. i don't see any big moves in anything. i don't know why this post says anything is "surging" because nothing is as of 9pm EDT
But Bitcoin is still peaking hmmmm.....
http://bitcoincharts.com/charts/mtgoxUSD#rg60ztgSzm1g10zm2g25zv
Jeeez, negative love for just mentioning bitcoin? Give me three good reasons why the euro is any better method of exchange after this kabuki theater in Cyprus and I'll never mention it again....
It's at the top of the paid shill's 'topics to sabotage' list at the moment. You saw the US government announced they are going to treat bitcoin transactions as illegal money laundering? Apparently the slow-witted Elites are finally recognizing bitcoin is a real threat to their shitty fiat currencies.
I do not understand bit coin yet.
In fact, there's lots I don't know! :-)
I am intrigued by this engineers social value theory econonomics.
http://www.ingenesist.com
I think he was funded by DARPA at some point, but it's interesting and Dan is a cool, smart, person. I see some "value" here as to concepts for the"other side."
How can they not vote on it if there are still deposit haircuts? Wouldn't a restructuring that bypasses the creditors and goes straight for the depositors need legal approval?
There is no rule of law anymore. There is only laws by bankers for bankers. Bankruptcy laws have been corrupted. Just look at GM. Revolution is just a spark away.
this won't work when it's italy's turn
The most courrpt banksters in the world are still here despite what you read.
'In other words, a deal far worse then the original on proposed by the Eurogroup last week - when the banks still existed. The key appears to be the 'saving' of the insured depositors (crucial to avoid a pan-European bank run) ...
exactly. it was not the ecb et al that wanted the under 100k insured to pay for that exact reason. it was the pres of cyp.
the pres of cyp refuses to take the original deal, insisting on renegotiating the 15% on the over 100k crowd down to under 10%, with the balance being taken out of the insured under 100k, all the while risking the funding for the banks.
why would he do that you ask?
i've made my analysis elsewhere.
but perhaps my analysis of his motives were wrong. forcing the under 100k to take a hit he did, yes. but, perhaps he did in fact recognize that without the over 100k crowd, the crowd upon whom so much of his country folk depended for their lively hood, the over 100k crowd would exit, no longer willing to trust the cypriot government to stand up for their interests. and that would crush his country's people. perhaps he thought 6.+% was the best he could do for them in the long run.
the people of cyprius will decide that.
after all, money laundering to one is just another man's tax shelter.
p.s.
the story continues is spot on zh.
Now we're talking a 40% haicut for depositors over 100k crowd according to the new in Europe.
'UPDATE: There is talk that there may be no need for the government to vote for this - since it is not a 'tax' but a bank restructuring. It seems they have kept it in the bankers... the ECB (in its independent way) tells the Cypriot NCB what it should do, the Cypriot central bank then restructures its bank how it sees fit - good/bad bank and haircuts where it sees fit - this then gets around need for vote from government AND any possibility of a European Union law (on taxation) being broken...'
HUGE ERROR FOR THE ECB. WORST MOVE IN A TERRIBLY DONE NEGOTIATION PROCESS. THIS BREAKS THE EUROPEAN UNION.
my prediction:
russia comes in later with humanitarian aid and supports the cypiot people as they vote to exit the european union.
greece follows.
after all, all you need to travel in europe is a visa, not a union.
from another of my post:
listening to zh provide link to webcast reveals cover for non vote by cypriot parliament came from one of the measures passed by the cypriot parliament in their last session!!!! just prior to this deal!!!
fascinating. great forethought by the ecb. perhaps a little wool over the eyes of the cyp parliament? the outcry will tell. the parliament members' record voting on that issue would be revealing.
this greatly reduces cypriot anger towards ecb et al. refocuses it on their own parliament for making that error.
net result, cyprus stays in the euro. barely
nicely played euro.
Algos are people too. /sarc
This isn't about Cyprus banks at all. Not anymore. This is about the ECB and EU Marxists and how far they can push ordinary people into debt servitude. It's unbelievable to me that Europe isn't burning down right now.
I always thought "ring fencing" applied to limiting economic contagion to the other zombie economies. Apparently they put up a real fence to keep the angry muppets from swimming off the island and assaulting Munich....
Don't battle the beast or your freedom lay behind incenerator #1, #2, or #3. Get what you can of what you value and leave the noeCONzi ruled cypussing terminal financial cancerous Ezero state. Flee to where the neoCONzi's have no rule; power over the people. That would be UrANUS. Time to honker down for the fight. You know the one to save the free constitutional republic in America. This is where freedom will be saved. Why not where it was born. It's in our blood and the neoCONzi's have highly underestimated the spirit of true Americans. Ones already tested in fighting foreign wars, honest in heart who know our government is about as representitive of we the people as a sack of manure.
Looks like this whole Cyprus crisis was just a tempest in a teapot after all . . . . .
Have you no shame?
And where the fuck is Obama again?
he's not saying shit, nor is the pope.
sorry for the cussin but this is like finding out the moon landing conspiracy is true.
obama has taken a security detail of 3,000 with pitchers gloves to catch the hand held sam missiles coming over the wall between the palestinian settlements..
i wonder if he thinks he is the man to tell everyone to stop being nasty to each other when he creates enough friction to make him have to keep his hair cut very short
...after all, if the US supreme court can make an individual mandate to buy healthcare constitutional by renaming it a tax, why can't the EU avoid a pesky parliamentary vote by labeling a tax a 'restructuring'?
When DHS buys them it's a personal defense riffle, when I buy one its an assault riffle...
would it be less infuriating if it wasn't so blatantly ass-backwards ?
...after all, if the US supreme court can make an individual mandate to buy healthcare constitutional by renaming it a tax, why can't the EU avoid a pesky parliamentary vote by labeling a tax a 'restructuring'?
Bank of Cyprus branch was bombed in Limassol today.
Article with picture of blown out window front.
http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&i...
honestly think the loomy bankruptcy at Energy Future Holdings may be more of an issue due to the size of it
further all time highs for the DOW & S&P...sigh
And another Bank of Cyprus branch bombed in Polimedia.
http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&i...
Maybe it is the same one as Limassol? I'm not up on my Cyprus geography.
Here is some video footage of the bombed bank.
https://www.youtube.com/watch?feature=player_embedded&v=7WvVCqW-nVA
Apparently if the news is to be believed it wasn't a bomb but firecrackers.
http://news.sky.com/story/1069277/cyprus-bailout-deal-taking-shape
News website Sigmalive said two assailants smashed a glass door and set off the firecracker, but arriving firefighters quickly doused the flames.
Let's see.
1 - They restructure the "whatever it is" so it doesn't have to be voted on.
2 - They only come up with an "Agreement in Principle"
So, what am I missing here? It sounds to me like they have nothing, absolutely nothing.
Yet another disgruntled Russian Acct Holder on RT -
Ivor Binriptovalot
Five different proposals/solutions launched and failed in a week, but, this time it’s final because……….?????
All I know is that as long as Larry Fink isn’t worried, I’m going to remain worried.
i think fink got his ambition from his name..fink by name, fink by nature..
he only cares about his own salary, small countries of a million or less aren't wrht the shit on his shoe to him
I'm guessin' this deal fits the definition of a self-licking ice cream cone??? CB
The question comes down to who will have the balls to be the first one out?
Article says accts with more than 100000€ will bail out banks,.
EU deal emerging to shut Cyprus bank, inflict losses
"....Deposits above 100,000 euros, which under EU law are not guaranteed, would be frozen and used to resolve debts, and Laiki would effectively be shuttered. The EU spokesman said no levy would be imposed on any deposits in Cypriot banks."
http://www.reuters.com/article/2013/03/25/us-cyprus-parliament-idUSBRE92...
Are we the only ones that read about Putins "buddy" billionaire doing his interpretation of a dead man float?
What can go wrong?
The vernacular term in German to murder someone is "bring him around the corner".
Um die Ecke bringen. They are actually rather embarrased about this,but when you see a German gangster movie,that is what they say.
I remember about ten years ago an Israeli bank was in trouble and asking the USA for support.So,the Israeli's speculated on the bank getting the bailout,drove the bank under,the bailout had arrived,that money was spent,and they go "sorry that $50 mill. is gone .We need another $50 mill. to recapitalize the bank". So the FED ponies it up of course.
How's that Hunter S. Thompson quote go? "When the shit turns weird,the weird turn Pro" .
I think we found the canary in the coalmine,or when the tide goes out you find out who has been swimming naked moment.
Stop bailing out banks everywhere NOW. Let them fail. It is unnatural to prop up dying institutions which usually are riddled with fraud.
We went through this in the 80's with Reagan deregulating the S&L's in Texas. Very few people went to jail and the taxpayer was left with a $1 trill. tab to pay. Bring risk back. Stop all this derivative CDS nonsense. They said that Lehman was contained.And the counterparty stuff went everywhere. The FED needs to stop the bullshit or we won't have a currency worth speaking of. They have had FOUR years and the shit is still going on...
By the way,the FED's 100 year contract is up this year. Why nothing in the media? Hmmm.
Max Keiser,get on it.
Suffice it to say that Russia will be going after German assets - worldwide.
I would not want to be a German executive in Russia going forward, nor a German company.
As expected, the ECB made Cyprus "an offer they couldn't refuse".
Meanwhile back on planet Bernanke, watch the Japanese Yen drop significantly over the coming days and weeks.....or at least until the next episode of European banker/politician sociopathic maneuvering.
so essentially bailing out a banking system, or a country's banking system on the back of select foreign depositors.
i think russia just entered the currency wars. what was russie doing that upset germany so much?
so from my vantage point, the message is, if you have any significant amount of money in a weak (country) banking system, better take it out now. cue whooshing sound of euros out of europe into the middle east or the far east; quickly followed by a whooshing of dollar funding from the Fed to the ECB (wiith no collateral fyi).
prepare for greatest 'pop and drop' you have seen in over 4 years
This was always the primary objective, when you are broke you rob those that aren't. The foreign accounts (Russians by default) were always the target here. They got even more than they wanted which is complete confiscation of those accounts to do a socialist redistribution of wealth (aka bank bailout). Problem is that pesky little thing called the law of unintended consequences.
This isn't over... 1) I doubt the deal stands. 2) The Russians are not going to sit quietly while taking one up the tail pipe...
So Russia sits back and allows confiscation of deposits. Perhaps the real trade is to maniuplate the news in order to fade / short the Euro on this fabulous news and then send in the Russian army to protect their interests as the Euro crashes, and the Russians make more than their losses in seized deposits through their shorts.
Why the long faces? Who went short into this?
If you did, what the fuck were you thinking and why rage at heaven for your stupidity?
If you are long PMs, from what I see the response is a shallow selloff. I went fairly aggressively long silver at Friday close and feel fine about it.
If neither, and you are cursing simply because you are bored and once again you did not get your bloody trainwreck, then you are even greater a fool.
From what little I see reported here, the plan looks reasonable. Several big banks were going under, so they needed recapitalization, a merger, or bankruptcy procedures. So, that's what they got: a little of all three. In return, the Troika continues with emergency lending, per their charter. The rub? The solution was dictated by the ECB, not the banking regulators of Cyprus. Well, tough shit. They did get their act together.
I agree with the many posters here who ask "How long will this plan work? Won't we be back here again soon, just as Greece was revisited about 3 times?" Well, let's just see. Proclaiming it DOA today is premature.
Silver went green and gold is - $1.40; hugely bullish. Adding tomorrow. PM bulls, this is your party not the S&P 500.
Let us stop for a minute and bow our heads in respect for the fallen comrades whose lives are ruined by the deal. The go spend and invest, drive that S&P upward.
0.35% on s&p not exactly a ramp.
I'm confused, is parliament going to be allowed to vote on this deal or not? Do we even really know yet? What's Beyonce have to say about this?
Beyonce's probably too busy trying to figure out if Bermuda is going down next and where else she can park her money.
Still can't work it out........is there a vote for this in Cypriotic land or not?
http://www.zerohedge.com/news/2013-03-24/eurogroup-press-conference-live...
in this broadcast, the panel points out that one of the measures that was passed in the most recent sessions of the cypriot parliament contained authorization to settle 'banking' reoganization (i don't remember the exact phrasing).
no new vote. quite an accomplishment for the ecb et al. i would love to know who voted for that one. i am sure the people of cyprus will find out. but this gives the ecb et al 'cover'.
sounds like ACTUAL bankruptcies!
Cheers Bitchez!!!
this is exactly what is suppose to happen (and what US failed to do. The initial proposal was way off. but this 1) all capital wiped out 2) all bank bond holders take loss and 3) what is left to pay uninsuried shareholders have to eat the rest.
Thats how the markets suppore to work Cipriot tax payers couldnt afford to bail out the banks.. The EU and Russians were not willing to .. so theres no one to pay but the owners and investors.
The fact the EU did not want to bail out banks holding foreign investor money also makes sense (as its not vital to EU economy so they took their own risk investing in a tax haven.
Last point this should make people wary of off shore tax havens that hold large amount of assets in foreign currency (ie Singapore holds mainly USD) if their bank goes under Singapore Govt / central bank cant print USD to recapitalise so the losses will be permanat. (in this case ECB was not willing to provide the funding (where as FED /BOJ do in almost all major cases).
So in the end they got the correct out come even though its sad for those suffering losses.
I agree with you whole heartedly on the whole tax haven front. I have a feeling people who have their money socked away in Bermuda, or Curacao are gonna have to think twice about moving it somewhere else.........but where?????
There's been lot's of mention on ZH about storing your gold offshore. If this problem in Cyprus tells you anything, it's telling you NOT to store your gold beyond your own arms reach.
I had a coin collector dealer tell me that the majority of people have no idea what a Canadian maple, American Eagle, or Krugerrand are much less know what one looks like. I still believe they don't. Storing it at home in a safe place is do-able.
Once the majority DO know what they look like, then you clearly know when the SHTF.
But in this case the most bondholders of the Cyproit banks will still be whole, they suffered no loss. The stockholders will get some dilution from the deposit/equity swap, but the priorities of liabilities were completely ignored. If the bond and stockholders were wiped out as they should have been, this wouldn't be nearly as bad of a deal.
Remember the priority of claims is insured deposits, uninsured deposits, bondholders, then stock holders. Turning this upside down is insane.
It must be cool to be a Cypriot. You go to bed thinking, "My God, when I wake up everything's going to be wiped out!" and yet tomorrow when they wake up, everything will be fixed!
YAYNESS!
In the US we started a revolution because of taxation without representation.
I hope the Cypriots will tell the unelected Euro-crats to go F--- themselves and fight for their own sovereinty & freedom.
We are due for round two here in the states...
That cat has to be getting close...NINE LIVES!
here comes the pain
The EU showed their true colors tonight...fuckin fascists!
Lets get this one wound down
Turkey is heating up...the country that is
I've seen a few comments here that "The correct thing was done". Didn't we just watch deposits get... seized... to pay off bank debt? If you had over 100,000 Euro in your deposit, you were treated as "uninsured" and thus, bad and seizable. Am I missing something here? Why would I EVER put my money in a bank again?
thats what uninsured means the EU guarantees up to 100K above that your on your own in case of failure.. Australia is 250K.. Japan is 10 mill yen,. so its known in these places.. so no one can complain .. if they were worried they should have slit accounts less than the insured amount.. ,but in reality nothing is safe no company / bank last for ever.. so people should have always focused on what the Govt guarantees and accept rest is risk..
And in every one of these places you wipe out the stock and bondholders to pay the uninsured deposits first. They did the wrong thing by ignoring the previously agreed upon priority of claims.
This is exactly how it's supposed to work. what you're missing is that when you put your money in a bank. It's no longer your money (Google Carr vs Carr - 1811) It's the bank's money.
Why would you ever put money in a bank? Fucked if I know. Seems like a really shitty investment to me.Maybe you should buy some gold instead.
We're shaved! We're Shaved!
Wow... Bloomberg article is saying no more than 40% of uninsured money till be used. I like how they sound like they're playing it down and making everything seem so casual with "no more than". Plus don't know how much Cyprus Popular has, but uninsured depositors will be "largely" wiped out.
"Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said."
http://www.bloomberg.com/news/2013-03-24/cyprus-said-to-reach-tentative-...
I don't think this ramp-fest was longs rushing to push the market higher because of euphoria that Cyprus has been solved. Instead, shorts are covering on the possibility that the announced deal might thwart or at least delay their thesis that there would be no deal; or the possibility that what the expected pan-European run on the banks would not occur with catastrophic consequences, at least not now. They have to preserve capital to short another day.
- previous msg duplicated - Sorry.
Seems a decent risk-reward to fade this manufactured EU-phoria right about now, with a fairly tight stop.
The only thing missing today is the battleship USS Missouri on which Cyprus can sign the unconditional surrender to Brussels.
Bloomberg reporting that deposits over 100,000 euros at Bank of Cyprus will receive 40% haircuts, and deposits over 100,000 at the Cyprus Popular bank WILL BE WIPED OUT COMPLETELY!!
http://www.silverdoctors.com/cyprus-troika-agree-to-bail-in-will-bypass-...
Just heard that Bermuda and Caymans have been made 'honorary' Eurozone members.....or was that just the voices, those damned voices all the time.....
Why is he speaking (nervous manner) as if he knows there is a car bomb in his future?
This is what we get when Central Banks (think FED) dont have govt checks and balance systems in place and they operate on their own
They fuck you in the drivethru...Lethal Weapon
I see the that any deposit over 100K Euro is now being labeled as "Wealthy".
Brilliant, Troika! Save the "Poor" at the expense of the "Wealthy".
Promoting class warfare while stealing the people's money from right under their noses.
Absolutely brilliant.
Well your average person on a reasonable wage who invests not particularly well can save a million or so up to the point they retire. It seems to me they are primarily taking the money of prudent elderly people.
Know what this really says? PAAAAAARRRTTYYYYY! Be a grasshopper not an ant.
Here are live updates at the Guardian...
http://www.guardian.co.uk/business/2013/mar/24/eurozone-crisis-cyprus-ba...
Maybe I'm old fashioned, but in the case of insolvency, don't shareholders, unsecured and then secured bondholders take their haircuts before depositers lose? Anyone who leaves money in banks these days is a fool.
In Laiki bank, all bondholders Jr. & Sr., and shareholders will be wiped out. Bye bye uninsured depositors. Laiki is being fully resolved. In the Bank of Cyprus, uninsured depositors get screwed but the extent to which is unknown for several weeks to come.
I wish you had put times on the updates so I could know which of this is the latest and which of it is just more talk from over there...
this is why i short the vxx
Oh isn't that lovely. They made this decision of financial rape over their 5 star dinner. I hope these euro freaks suffer a nice long life in prison.
France France Franc France France
That's the one to watch. Lots of large deposits, kind of a long record of historical "disagreements" with Germany, and a government not exactly averse to a little class warfare, all create a recipe for funding problems, especially in Bank Paribas and SoGen. Get your CDSs while they are not hot. It might take until Bastille Day, but it is coming.
Up arrow for the Wingate avatar!
So, they have decided to screw over the few people who have the real means and wherewithall to actually retaliate.
There should be an increased demand for life insurance on Monday.