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Merkel "Very Happy", Russian PM Furious: "The Stealing Of What Has Already Been Stolen Continues"
First, it is Merkel's turn, which last week was furious at Cyprus for daring to reject the first flawed Eurogroup plan impairing insured depositors, only to praise it for now... rejecting said plan. To wit: Chancellor Angela Merkel, "as well as the government, is very happy that the troika, the euro group and Cyprus were able to reach an agreement," German government spokesman Steffen Seibert says in Berlin. He added that difficulties will arise in the short term because of measures aimed to scale back Cyprus’s banking sector, "but in the long run it will lead to a healthier” industry. That remains to be seen, especially when factoring in the Russian response.
Which wont be pleasant.
The official Russian line is one of a typical professional chess player - calm, cool, collected: Russia doesn’t see need to take any additional steps now, may still agree to restructure loan, First Deputy Prime Minister Igor Shuvalov told reporters earlier. Shuvalov, unlike Merkel and ECB's Mersch who sees nothing but green shoots (literally) everywhere in Europe, said that Russia is concerned Cyprus crisis may have negative effect on euro. The deputy PM says that he has no estimate for Russian losses in Cyprus but added that Russian money in Cyprus is "legal."
The unofficial line comes from former president, and current PM and Putin mouthpiece,Dmitry Medvedev. From Reuters:
Moscow reacted with anger on Monday to a European Union bailout of Cyprus that will result in heavy losses for foreign depositors at the Mediterranean island's banks, many of which are Russian.
"The stealing of what has already been stolen continues," Prime Minister Dmitry Medvedev was quoted by news agencies as telling a meeting of government officials.
Russia turned down desperate appeals for financial aid last week from the Cypriot government and the final bailout was likely to be more painful for its depositors than an initial rescue plan rejected by the Cypriot parliament.
Speaking after the meeting, First Deputy Prime Minister Igor Shuvalov said losses to Russian investors in Cyprus were not yet clear.
He also said that the Cypriot unit of state-controlled VTB, Russian Commercial Bank, would not be affected by measures taken by the government.
"What is happening is a good signal to those who plan to move their capital to ... Russian banks," he was quoted as saying. "We have very stable banks."
Russians are believed to account for most of the 19 billion euros of non-EU, non-bank money held in Cypriot banks at the last count by the central bank in January. Of 38 billion euros in deposits from banks, 13 billion came from outside the EU.
In other news, we are closing our Belgian Caterer 3x long ETF, and opening a new 3x levered ETF in Belgian Bodyguards and Polonium 210 "tasters." We expect it to hit our price target of "more" shortly.
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Germany, Cyprus, et al pollitcos, banksters may learn their Diplomatic Immunity has worn off...
Diplomatic immunity does not protect against prosecution under Newton's laws.
As the US Ambassador in Libya found out.
bullish polonium dietary supplements
What's with this sentence?
"He also said that the Cypriot unit of state-controlled VTB, Russian Commercial Bank, would not be affected by measures taken by the government."
Maybe it's where all the Russian money is?
We 'fixed' it...all your moneez are belongs to us!
And the moral of the story is .....
If you want to live happily ever after, get your money out of the banks.
End of saga.
No-one seems to have noticed yet that the IMF have insisted that the deal is not subject to a parliamentary vote. Whatever happened to good old fashioned democracy ?
The Cypriot people didn't cause this but they sure as hell will be paying for it.
There is no vote because they are simply resolving the insolvent banks, which is what they should have done from the start. The original plan required a vote because it taxed all deposits in all banks so the insolvent banks could stay open.
the russians got whacked financially and a few cypriots might get truly whacked in reprisal à la mafia style!
The Eu did the right thing at least in that sense; plan A was illegal!
One aspect that I don't see treated here is that the Russian government has every interest to see the hot money from their system, which escaped tax payments in Russia when it fled to Cyprus via crony oligarchy hanky panky high up in russian government circles, does now return to Russia as investment.
There is talk from Medvedev of creating a tax free zone in East Siberian Russia to encourage this investment to come back to "mother land".
Now that Berezovsky is gone will those OTHER oligarchs now ask for tax pardon and participate once again in Putin land?
Chypre: la Russie va étudier les conséquences du plan pour ses intérêts (Medvedev)
"Cash only - until the financial situation is resolved."
http://www.reuters.com/article/2013/03/24/us-eurozone-cyprus-mood-idUSBR...
I on't think one can be so sure the kremlin whats the money still in russia, you don't know what % of that being taken is from putin cronies, and they themselves understand they have to get the money out because of the next guy. the biggest looters there are part of the state.
Sounds to me like Russia's first response will be to encourage Cypriots and others to move capital out of Cypriot banks and into Russian banks. Wouldn't that be a bite for the new "good bank" the Troika wants to create
Like shooting your daughters chicken stealing dog.
Nobody ends up happy.
But only one stays unhappy.
So...shoot the daughter because the dog will get over it faster?
Why have a target price of 'more' when you can have 'moar'!
Russia inks a Siberia- crude deal with China, presumably for RMB (Bloomberg):
http://www.bloomberg.com/news/2013-03-25/russia-cuts-china-into-arctic-oil-rush-as-energy-giants-embrace.html
Look for the Russians to stop accepting (depreciated) euros.
"Dollars, please!"
Brazen. Does not even begin to describe the EU and ECB actions. These banking structuures are done.
long umbrellas
What about long umbrellas?
Russian money in Cyprus is "legal."
Yeah, like "American" profits in (insert offshore bank account here) is ethical. Ethical because the, "it wasn't illegal" statement is a broken record.
Also, insider trading is legal if you are a CONgress person..not so much if you are Martha or someone else
http://theuglytruth.wordpress.com/2013/03/22/american-democracy-at-work-...
Cyprus is saved once....
German, Finish and Netherlands vote approval of bailout funds.
Funds start flowing to Cyrpus in May
IMF approves loans
Banks are actually reorganized
Capitol controls are lifted...never. They need more money coming in, with capitol cotrols who would put their money there? No one.
Thousands of unemployed bank workers are muted.
Cyprus legislature will be making waves. Thousands of jobs will be lost with this plan. It's only just begun.
If they think this plan will work they are truly idiots. I think it breaks down by Tuesday and they have to go back to the drawing board. This was a ploy by the Cyprus president to tell the EU see we tried. Our people just won't accept it. At which point EU will have to come in with better terms for Cyprus.
what a bunch of idiots the cypriots are
I would take much greaterr pleasure and sleep better If I told the EU to go f*ck themselves rather than ex KGB
The politiciands will never sleep easy again nor do they deserve to
would not want to be the banker that steals from the Russian Mafia....there will be consequences.
Do you think that the politicians who authorised the theft will kindly be forgotten by the Russians?
Even Putin is now back pedalling and saying he will help Cyprus structure its economy along with EU actions.
This man is totally schizophrenic in his tendency to play the populist patriot up in arms against Oligarchy scamming money out of Russia and the next moment being the subtle deal maker and boss of oligarchy clans whose money and power he cherises.
Two faced Putin playing a subtle clever game; too clever by half?
La Russie prête à contribuer au sauvetage de Chypre
I sincerely hope we will, over the coming months, see a certain kind of Russian professional arriving in an insignificant shithole of a little excuse for a country situated somewhere between Germany and France, to do the work that the European populace ought to have done years ago in public squares with wooden contraptions fitted with big, sharp pieces of steel. You know, the certain kind that is good with toxic chemicals, piano wire and that evil, evil device of lead and smoke from whose possession EU governments have managed to protect their citizens.
Goodbye Merkel. Goodbye Draghi. Goodbye you patronising anal-retentive totalitarian scumbags.
When you realise that the collapse of the Cyprus economy, in the aftermath of this forced slimming exercise pertains to a banking sector which is de facto 70 % of its GDP, you know a 20% shrinkage via haircuts of its top residents' wealth and subsequent pull back in withdrawal pains of oligarchy shame, will cause severe strain to its citizens; all part of this scam.
Now project such an eventual incident in that other plush as Cinderella's pumpkin city which is London's jewel of financialista scamming and banksta scum bums. A 20% reduction of their wealth and analogous withdrawal pains of eager beaver oligarchs, deprived of their daily thrills in leveraged market plays, could produce a similar panic and disaster for Britain...land of entrepreneuial freedom par excellence; n'est ce pas?
Why oh why are there such incestuous ties between oligarchy money lines parked in these urban rich man's ghettos called tax paradises?
A spider's web torn asunder when there are panicky movements tearing the fabric of fiat honeycombing.
Just pray that Cameron does not get the itch to twitch the devil's tail in wealth tax spiking of corporate or non dom wealth to improve his electoral chances.
how the fuck can markets be up and gold down on this? I mean are all euro citizens now to assume that their deposits are safe?
European citizens are going to be defining "SHEEPLE" is a whole new way in the next 30 days ....I'm afraid.
GET SOME FUCKIN BALLS SHEEEEEP - THROW A SOCCER BALL OUT THERE- that seems to be the only thing that moves these wine drinkers....
Put your money into a Russian bank, its' abslolutely safe. LOL
I'm changin my name to Ollie Garch.