The Cyprus Lie Changes Again: Capital Controls Will Be Present After All

Tyler Durden's picture




 

In an unsurprisingly supportive tone for the ECB and the Eurogroup, Cypriot Central Bank governor Demetriades says:

  • *DEMETRIADES SAYS SUPPORTED FIRST EUROGROUP PROPOSAL ON CYPRUS, and
  • *DEMETRIADES SAYS ECB DOING ITS JOB RIGHT ON CYPRUS BANKS

But, it seems, in recognition that there are 'leaks' in their current capital control scheme, Demetriades has just admitted that:

  • *DEMETRIADES SAYS CAPITAL CONTROLS TO BE SAME FOR ALL BANKS
  • *DEMETRIADES SAYS CAN'T GO INTO MORE DETAILS ON CAPITAL CONTROLS

Not only that but he clarified that if the deal had not happened then ATM limits would be EUR30 per day not the current EUR100 per day. Now that all the Russian money is gone, the only question remains just how big the capital shortfall will be - earlier we learned that it will be at least EUR2.5-3 billion.

 

The EUR is not happy...

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Tue, 03/26/2013 - 11:58 | 3377318 Sudden Debt
Sudden Debt's picture

Endgame => dead ahead.

Tue, 03/26/2013 - 12:02 | 3377343 camaro68ss
camaro68ss's picture

All this bullish double speek is giving me what ones purple pills would give you

Tue, 03/26/2013 - 12:04 | 3377352 Careless Whisper
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The Careless Whisper News Update & Threadjacking AHEAD OF DRUDGE

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NY Gov Andrew Corleone To Send $350 Kickback To Voters Three Weeks Before 2014 Election

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NOTE TO CANADIAN JIM CARREY: 1963 - Charlton Heston Marches For Civil Rights (h/t Black History Month) VIDEO

http://www.youtube.com/watch?v=og0QBldrKd4

 

 

Tue, 03/26/2013 - 12:26 | 3377461 Beam Me Up Scotty
Beam Me Up Scotty's picture

What are they going to do when there is no more money left in those banks to control? Or will ATMs be modified to dispense coins to drag this out a bit longer??

Tue, 03/26/2013 - 12:37 | 3377522 Quinvarius
Quinvarius's picture

They will be modified to eat 70% of all ATM cards.

Tue, 03/26/2013 - 12:43 | 3377541 The Big Ching-aso
The Big Ching-aso's picture

Does anyone know behind which curtain the Wiz is? There are so many curtains now we're running out of dogs.

Tue, 03/26/2013 - 13:05 | 3377680 toys for tits
toys for tits's picture

BREAKING NEWS:

Cyprus is escalating capital controls and will now determine how bank customers utilize their capital.

Tue, 03/26/2013 - 13:17 | 3377712 jumbo maverick
jumbo maverick's picture

All your capitals belongs to us

Tue, 03/26/2013 - 13:21 | 3377736 knukles
knukles's picture

A tin cup on every beggars corner

Tue, 03/26/2013 - 12:39 | 3377529 Dr. Kananga
Dr. Kananga's picture

Nah. The reciept you normally get will have a value printed on it. You'll be instructed to use the receipt itself to buy groceries. No actual money will come out of the machine. Just the receipt.

Benanke and the rest of the money printers will have a fit when this happens, but hey, when the shit hits the fan, you gotta cut out the middleman.

Tue, 03/26/2013 - 13:02 | 3377663 catacl1sm
catacl1sm's picture

Isn't money just a receipt with the value printed on it anyways?

Tue, 03/26/2013 - 12:28 | 3377471 Town Crier
Town Crier's picture

I just hope Gerard Depardieu is still happy about his move.

Tue, 03/26/2013 - 12:36 | 3377515 Town Crier
Town Crier's picture

I also worry about Kim Jong-un.  With all this attention on Cyprus, he may be feeling left out.

Tue, 03/26/2013 - 12:36 | 3377516 Town Crier
Town Crier's picture

I also worry about Kim Jong-un.  With all this attention on Cyprus, he may be feeling left out.

Tue, 03/26/2013 - 22:17 | 3379965 thisandthat
thisandthat's picture

So Yahoo bought Chumlee for 30Mil - does that mean Pawn Stars is toast (like I'd care)?

Tue, 03/26/2013 - 12:15 | 3377418 TheFourthStooge-ing
TheFourthStooge-ing's picture

Reminds me of a bunch of criminals scrambling to get their stories straight before being questioned by detectives.

It doesn't make a lot of sense considering that they're outside the law.

Tue, 03/26/2013 - 12:24 | 3377452 TumblingDice
TumblingDice's picture

But they still have to put in effort to make it look like they are formally below the law. 

Tue, 03/26/2013 - 12:29 | 3377478 Bay of Pigs
Bay of Pigs's picture

The Usual Suspects?

Tue, 03/26/2013 - 13:22 | 3377748 knukles
knukles's picture

They employ and pay the law, lawyers, judges and military

Tue, 03/26/2013 - 14:32 | 3378073 Buck Johnson
Buck Johnson's picture

But not outside with the people who will lose all their money in their country.  Also not outside the reach of the bankers who may have been lied to to bail them out.  This is becoming a farce.

Tue, 03/26/2013 - 16:37 | 3378804 Muddy1
Muddy1's picture

@camaro68ss,

An erection?????

oh, wait, that's the blue pill, my mistake

Tue, 03/26/2013 - 12:03 | 3377346 DJ Happy Ending
DJ Happy Ending's picture

And still no bank run in any of the PIIGS. I don't get it.

Tue, 03/26/2013 - 12:06 | 3377371 GrinandBearit
GrinandBearit's picture

I've been saying that since this Cyprus crap all started.

Tue, 03/26/2013 - 12:09 | 3377392 flacon
flacon's picture

Maybe it's all electronic bank runs...

Tue, 03/26/2013 - 12:17 | 3377419 Manthong
Manthong's picture

Heh heh.. I think the real end game was linked in Frontrunning this morning.

And gee, I don’t know what those guys are going to want to use to stabilize their exchange rates, but I don’t think paper “claims” or “receipts” from the Fed or ECB will do.

BRICS Nations Plan New Bank to Bypass World Bank, IMF (BBG)

Tue, 03/26/2013 - 12:36 | 3377505 Kiss My Iceland...
Kiss My Icelandic Ass's picture

"BRICS Nations Plan New Bank to Bypass World Bank, IMF" ... Hey, we want to print too !!!

Tue, 03/26/2013 - 12:43 | 3377556 The Big Ching-aso
The Big Ching-aso's picture

Hey did you ever stop to think there's no money for people to actually DO a bank run?

Tue, 03/26/2013 - 12:16 | 3377424 Timmay
Timmay's picture

Run on Guns, ammo, drones, armored personnel carriers, physical Gold and an end run on Liberty here in the U.S.

How's that for a "run"?

Tue, 03/26/2013 - 13:20 | 3377731 HurricaneSeason
HurricaneSeason's picture

I think Greece might have lost at least a few billion in deposits during last years "situation".

Tue, 03/26/2013 - 12:09 | 3377387 HelluvaEngineer
HelluvaEngineer's picture

It's happening.  They just aren't reporting it.

Tue, 03/26/2013 - 12:13 | 3377408 ziggy59
ziggy59's picture

Most peop, uh, sheeple are visually oriented. Cant allow herd mentality to occur without controlled alternatives

Tue, 03/26/2013 - 12:22 | 3377446 machineh
machineh's picture

OF COURSE the capital controls apply to every bank and every depositor.

Otherwise, capital just leaks from one bank to another, then out. Capital controls are to stop capital leaving the island.

What part of Argentine-style corralito did people not understand?

Argentina's corralito turned into a corralón (Big Gulp, to use a Bloomberg metaphor), and it LASTED A YEAR.

So far, all we've heard is the tip of the iceberg. The capital controls are a monster, and they're still writing them.

Tue, 03/26/2013 - 12:36 | 3377508 Going Loco
Going Loco's picture

Daily Telegraph gave Nigel Farage an OpEd today and he used it to expand his off-the-cuff advice to a detailed set of instructions to any Brits with money in any southern European country - GET YOUR MONEY OUT NOW. Brits are very slow to panic and generally prefer to see an orderly queue before getting imvolved in a bank run, and we haven't had much practice, just one in 150 years (Northern Rock). Also there are many who worry that Farage is a bit of a stirrer and won't want to be seen to follow his advice. But its probable that a lot of online bank transfers are happening today. As a card-carrying member of UKIP I am meeting Farage soon at a constituency event - looking forward to it. 

Tue, 03/26/2013 - 13:22 | 3377744 HoaX
HoaX's picture

If you do please ask him how the rest of his banker friends are doing today. As an esteemed fellow of the corporation of the City of London anything that pisses him off in this respect must have been a good measure after all.

Go Diesel-Boom go!

Tue, 03/26/2013 - 12:12 | 3377405 Sudden Debt
Sudden Debt's picture

Average Joe is a idiot... people just don't want to realize it because it would destroy their Nirvana...

Tue, 03/26/2013 - 12:26 | 3377422 mdtrader
mdtrader's picture

Capital will probably flow out of the Eurozone slowly. There's no immediate threat to other banks, but of course large depositors will probably reduce and or move capital. I also think that some insured depositors will take action as well. For example if I had 50K in an EU bank, I would probably still think about moving some of it, despite being insured. Firstly the banks can shut for an extended period of time if things turn sour, and secondly we know that the EU, ECB and IMF all signed up to raid all accounts in Cyprus, even the insured. If it wasn't for Cyrpus voting that deal down it would have gone through. All in all it's a tremendous own goal for the EU and one that will be hard to undo. It's likely to make bank funding in the Eurozone even more difficult than it already was.

Tue, 03/26/2013 - 12:17 | 3377427 Gooseone
Gooseone's picture

That's because there are probably honourable people left who feel that if they would do so , they would aid in ruining what is left.

They might be the same people keeping this whole ponzi sceme up , the ones who intend to pay back their debt and feel morally oblidged.

(They might not be very knowledgeable though...)

Tue, 03/26/2013 - 12:27 | 3377467 kliguy38
kliguy38's picture

Do you REALLY believe there are no bank runds in the PIIGS......remember the fiat is now "digital" and make no mistake the digital run is going on with big depositors

Tue, 03/26/2013 - 12:43 | 3377560 Joe A
Joe A's picture

People always will think that bad things won't happen to them.

Tue, 03/26/2013 - 12:13 | 3377412 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Hope you are right, but I fear we are underestimating the psychology/ignorance of depositors here. 

 

I can just see us all here in a month saying, "well I'll be damned, people are actually standing for this!".

Tue, 03/26/2013 - 12:23 | 3377450 Son of Loki
Son of Loki's picture

NICOSIA (Reuters) - Thousands of students and hundreds of bank workers protested in the Cypriot capital Nicosia on Tuesday as banks stayed shut to stop a run on deposits after the island agreed a painful bailout to avert bankruptcy.

 

http://ca.finance.yahoo.com/news/cyprus-banks-remain-closed-avert-run-de...

Tue, 03/26/2013 - 14:14 | 3377981 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I remember the zerohedge "riot-cams" during the Greek crisis and the talk of hanging "wanking bankers" in Ireland.

 

Then... nothing...

 

The only win for the little people I remember seeing was Iceland.  They had three referendums where the people rejected bailing out foreign depositors.  The third one had over 90% voting "no".  The iceland government's response was "its meaningless".  Then enough people showed up with torches to credibly threaten to burn govt buildings down and they relented.  

 

It can be done.  It just almost never is.

Tue, 03/26/2013 - 12:36 | 3377489 HardAssets
HardAssets's picture

Its truly amazing what people will stand.

In America a lawyer/liar/politician can order you imprisoned or killed without evidence or trial. DHS is ordering billions of rounds of ammo while the criminals in government are trying to take away your Constitutional right to defend yourself using the excuse of an event less likely to happen than your being struck by lightening. The banksters are given a monopoly that has allowed them to steal 98% of the value of your money over the last 100 years. Elections are rigged. Young fools go off to 'defend the nation' not realizing those wars are a scam that only enrich and empower a very small group of insiders. In the meantime those 'defenders' will be used as pawns to destroy the very 'freedoms' & citizens they thought they were defending. Most of them don't know it, but they are the greatest threat to the country, not any 'terrorist'.

Say any of this to most Americans and you will be met with either knee jerk anger or a blank look of ignorant incomprehension. They have 'more important' things to do such as watch the latest spectator sport or propagandist sit-com on t.v.

No, its not very surprising what people will put up with if they have been trained long and hard.

Tue, 03/26/2013 - 12:55 | 3377624 unknownknowns
unknownknowns's picture

"Endgame"

Does Putin ride back into town and calm down all those newly found EU-haters?

Tue, 03/26/2013 - 11:58 | 3377320 Cookie
Cookie's picture

More slippery than a bag of eels

 

Tue, 03/26/2013 - 11:58 | 3377321 TeamDepends
TeamDepends's picture

WHOA!!!  Dude on Bloomberg just caught a fly with his tongue!!  What the....???

Tue, 03/26/2013 - 12:19 | 3377437 Manthong
Manthong's picture

Obama is pretty good with flies, too.

Tue, 03/26/2013 - 11:59 | 3377326 Cursive
Cursive's picture

They should consider putting "bitchez" at the end of all official statements.  It would be very fitting.

Tue, 03/26/2013 - 12:03 | 3377329 FLUSA.com
FLUSA.com's picture

"ATM limits would be EUR30 per day not the current EUR100 per day."....  "Thank you sir may I have another"

Tue, 03/26/2013 - 12:18 | 3377364 Bananamerican
Bananamerican's picture

"yea, and if there are any more slip-ups, folks might end up getting EUR-0, so please keep your money in our banks!"

(facepalm)

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