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EUR Fades As Portugal Admits Cyprus Deal "Sets Precedent" - (UPDATE - Denied)

Tyler Durden's picture


UPDATE: Well that didn't take long - The Portuguese Finance minister just denied his earlier comments and added that the Cyprus deal is NOT a template for future actions (EURUSD doesn't believe him).


The shambles continues in Europe. This morning we saw a plethora of EU officials explaining how the Cyprus 'deal' is a unique, one-of-a-kind debacle helping to talk back #DieselBoom's mis-words, only to have their credibility destroyed by the actual transcript and his actual words. Then we get the fact that a new EU-wide bill on deposit bail-ins is introduced... and now the Portuguese finance minister has added to the dysphoria by explaining that, "the Cyprus deal sets Euro precedent on deposit protection," and we therefore assume on deposit impairment. It seems EURUSD also sees this...



Charts: Bloomberg


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Tue, 03/26/2013 - 11:35 | 3377173 Quintus
Quintus's picture

The Eurocrats' handling of this is an Omnishambles.

Tue, 03/26/2013 - 11:38 | 3377196 notbot
notbot's picture

Can't we band together, buy the NYT, and fire Krugman?

Or better yet, buy a European newspaper, pay PK a gazillion dollars to come live/write for them where he'll be given a hero's welcome?




Tue, 03/26/2013 - 11:42 | 3377228 The Juggernaut
The Juggernaut's picture

When you control the value of money you control industry.  When you control the savings accounts you control the people.

The power of the People via savings:

Tue, 03/26/2013 - 11:47 | 3377267 SpiceMustFlow
SpiceMustFlow's picture

Why the hell do these Europeans lie so poorly? Don't they pay attention to US politics?

Tue, 03/26/2013 - 11:50 | 3377284 pods
pods's picture

They really need some retraining in STFU.

Tap dancing in a minefield.


Tue, 03/26/2013 - 11:58 | 3377322 Super Broccoli
Super Broccoli's picture

they should ask bernake the adress of the bullshit school he went to !

Tue, 03/26/2013 - 11:49 | 3377282 SpiceMustFlow
SpiceMustFlow's picture

Why the hell do these Europeans keep telling the truth?! Don't they pay attention to US politics? Leave it to Eurocrats to fuck up the only god given skill politicians have.

Tue, 03/26/2013 - 11:53 | 3377303 Temporalist
Temporalist's picture

Good idea notbot but I think PK should be in the deepest darkest foulest dungeon somewhere writing his column on the walls of his cell in his own feces.  It would leave the world in a better place.

Tue, 03/26/2013 - 15:53 | 3378576 NoClueSneaker
NoClueSneaker's picture

 Two german newspapers where PK sold his E.T. - fiction already down . Three major ones more to go.....

Tue, 03/26/2013 - 11:44 | 3377242 McMolotov
McMolotov's picture

We need WB7 to throw together a picture of Diesel-BOOM saying "Release the Kraken."

Tue, 03/26/2013 - 11:44 | 3377252 HelluvaEngineer
HelluvaEngineer's picture

It's the new model for everything.  Next they will steal your money, then tell you it never happened.  Yes, people really are that stupid.

Tue, 03/26/2013 - 11:47 | 3377262 Joe Davola
Joe Davola's picture

The meaning of "is"

Tue, 03/26/2013 - 11:49 | 3377277 insanelysane
insanelysane's picture

The thing that cracks me up is that the "reason" they took the money in Cyprus is because there is a lot of money in the banks in Cyprus compared to the GDP of Cyprus.

Reading between the lines that Cyprus is a unique situation leads me to the following conclusion:

In countries where there is a lot of money in the banks, we are going to rape the depositors and in countries without a lot of money in the banks, we are going to rape the tax payers.


The sheeple happily graze.

Tue, 03/26/2013 - 11:56 | 3377314 Temporalist
Temporalist's picture

Too simple.  Cyprus is a disjointed country with divided populace and secluded from mainland with no military might to fear.  If that population was on mainland Europe and had a stronger military they'd be in much better shape.


Tue, 03/26/2013 - 12:49 | 3377595 Urban Redneck
Urban Redneck's picture

The Troika is nothing but a really expensive (and fascist) Three Stooges parody.

Tue, 03/26/2013 - 11:34 | 3377178 Cognitive Dissonance
Cognitive Dissonance's picture

Tell me something I don't know.

<"They" seem to be following the orderly Ponzi resolution script to the letter. I can't wait to see what disorderly looks like.>

Tue, 03/26/2013 - 11:53 | 3377299 pods
pods's picture

With this many idiots all trying to assuage the collective's fear it is going to be getting mighty dicey.

Too much talking and too many HFT algos.

Need a phat pfinger or two to really get things going.


Tue, 03/26/2013 - 11:34 | 3377181 pods
pods's picture

This is the start of one gigantic CF.

Money is going to be flying around different banks until it can find a way out.

Do Oligarchs like gold?


Tue, 03/26/2013 - 11:40 | 3377216 LawsofPhysics
LawsofPhysics's picture

Indeed, and the resulting inflation will be "all the people's fault".  Turns out the only bubble really was in the earth's fiat.  The death of fractional reserve banking as everyone simultaneously makes that margin call and demands to see the underlying collateral.  I guess they should have let that bad debt clear and those bad business models fail after all, oh well, put the motherfucking moneychangers to death already.

Tue, 03/26/2013 - 11:35 | 3377183 Edward Fiatski
Edward Fiatski's picture

See ya at 1.2675.

Don't want to be ya.

Tue, 03/26/2013 - 11:36 | 3377193 Stoploss
Stoploss's picture

Decision time now.

Do you pull it all out and risk an unknown haircut on your old fiat?

Or, do you leave it in hoping for a one to one conv to the new fiat after the initial haircut?

Tue, 03/26/2013 - 11:38 | 3377204 Mae Kadoodie
Mae Kadoodie's picture

"pull it out or leave it in?"...heh...heh

Tue, 03/26/2013 - 12:06 | 3377374 Acet
Acet's picture

I promise I'll pull out babe, trust me!

Tue, 03/26/2013 - 12:09 | 3377389 Udubfan13
Udubfan13's picture


Tue, 03/26/2013 - 11:37 | 3377198 ejmoosa
ejmoosa's picture

And once they knock the Euro down far enough, TPTB can say it is having a negative impact on US exports, and so they will feel that there's only one thing they can do....

Tue, 03/26/2013 - 11:42 | 3377237 Edward Fiatski
Edward Fiatski's picture


Ben is waiting on BoE, ECB to come full circle... so he can *cough*cum*cough* again.

P.S. What U.S. exports? LOL

Tue, 03/26/2013 - 11:38 | 3377203 Cdad
Cdad's picture

...but hearing that in Spain...folks aren't worried at all because the ladies are insane there.

Tue, 03/26/2013 - 11:39 | 3377206 Meat Hammer
Meat Hammer's picture

I have to admit, there was a teeny-weeny, itty-bitty, little area in the back of my mind that asked "What if we're wrong about all of this doomsday stuff?"  Operative word is WAS.

Tue, 03/26/2013 - 11:40 | 3377219 Dr. Engali
Dr. Engali's picture

These people are clearly insane. They are just rtying to end it all now.

Tue, 03/26/2013 - 11:45 | 3377256 NoDebt
NoDebt's picture

C'mon, Doc.  You know better than that.  There is a plan to this.  I've typed it into replies in at least 3 threads now, including again here, below.

I'm fairly convinced I've seen through this to the truth.  If I'm wrong I'll admit it and let my fellow ZH'ers smack me around for it.  But I don't think I'm wrong.

Actually, I wouldn't mind hearing your thoughts on it, if you want to reply to my post, below.


Tue, 03/26/2013 - 11:39 | 3377221 NoDebt
NoDebt's picture

It slices, it dices, it shreds your nest egg like a tubocharged weasel!

I think it's fair to say we're well past the point that this genie is able to be put back in it's bottle.

This is Germany telling everyone "only German banks are safe in Europe because we're in charge here."  They will eat southern Europe and what's left of their banking system with some fava beans and a nice chianti.  They always did want to take over the joint.  They may have just pulled it off.

Tue, 03/26/2013 - 11:58 | 3377323 ziggy59
ziggy59's picture

"Can it core a apple?" Ed Norton, The Honeymooners

Tue, 03/26/2013 - 11:40 | 3377222 OldE_Ant
OldE_Ant's picture

I suggest we start with the legislators accounts with a nice 99.9% deposit haircut ahem (tax) and then move on to the central banker family accounts.

How does that sound to you fuckers?


Tue, 03/26/2013 - 11:40 | 3377226 BlueStreet
BlueStreet's picture

Twinkies will be back on the shelves by summer, everything is okay.   

Tue, 03/26/2013 - 11:41 | 3377230 Bicycle Repairman
Bicycle Repairman's picture

It's a good way to drive down the Euro.

Tue, 03/26/2013 - 11:54 | 3377296 ParkAveFlasher
ParkAveFlasher's picture

Only if they print to cover losses.  The point here is NOT to print. The point is write down (deflate?) existing accounts and have the central banking mechanism reabsorb euros.

IMO The point is to vaporize Euros by forcing Euro owners to convert them to dollars (which Ben will surely print to satisfy the new demand, only after the fact), or end up in hoards which creates scarcity. 

We're on a big big rollercoaster.  Dollar up, Euro down, Euro up, dollar down ... and it's going to happen REALLY REALLY FAST.


Tue, 03/26/2013 - 11:43 | 3377238 Fix-ItSilly
Fix-ItSilly's picture

Everyone knows depositor funds are at risk.  But is Europe re-defining that risk vis a vis bondholders and equity holders?

Bank of Cyprus still exists, with Lakia folded in, and depositors are getting a haircut without equity, junior and senior bondholders likewise whacked.  The Wizard of Oz still reigns.

Tue, 03/26/2013 - 11:43 | 3377240 Cursive
Cursive's picture

These central bankers should consider following each other on twitter or something.  They have a problem with not following scripts.  Maybe they really do need those Matrix implants....

Tue, 03/26/2013 - 11:44 | 3377247 Elijah Craig 18
Elijah Craig 18's picture

Now more than ever depositor's will be required to figure out which banks are good bets and which are bad.


I suppose our due diligence can begin with the stress test results. /sarc


Tue, 03/26/2013 - 11:47 | 3377265 Bam_Man
Bam_Man's picture

Or just say "to hell with bank deposits" and put it all in "safe" government bonds.

Tue, 03/26/2013 - 11:48 | 3377250 Schmuck Raker
Schmuck Raker's picture

"Portugal Admits Cyprus Deal "Sets Precedent" "

I won't believe it 'til DieselBoom un-says it.

[Edit: Er...I mean, again, or something... I think...maybe.]

[Edit(2): This shit's giving me a migraine]

Tue, 03/26/2013 - 11:49 | 3377274 NoDebt
NoDebt's picture

I just watched what you did almost in real time (as fast as I could hit refresh after the Update/denial).  That was funny as shit.  Well done.  Well done.

Tue, 03/26/2013 - 11:47 | 3377264 Quinvarius
Quinvarius's picture

Stop looking at Schrodingers bank account and you won't have to find out if it is there or not. 

Tue, 03/26/2013 - 11:49 | 3377275 billybobtx
billybobtx's picture


Tue, 03/26/2013 - 11:52 | 3377289 TomGa
TomGa's picture

How quickly we forget the news from last week...

"If this is successful [levy on Cypriot depositors] then it will be used in the future," said the dejected official, predicting Spanish and Italian banks could face similar levies."

 ...while "Jeroen Dijsselbloem, president of the group of euro-area ministers, on Saturday declined to rule out taxes on depositors in countries beyond Cyprus,...."

Tue, 03/26/2013 - 12:01 | 3377332 Village Smithy
Village Smithy's picture

The only question I have is do these mouthpieces have sufficient trading knowledge to go short before they make a statement and then turn it all over for the return trip back up on their denial, or do they simply speak, wait for the dump, then buy, then deny. Hey, I just coined a new market manipulation strategy, the "Buy then Deny".

Tue, 03/26/2013 - 12:00 | 3377333 Super Broccoli
Super Broccoli's picture

that's kinda of a friday talk ... why the hell on a tuesday ?

Tue, 03/26/2013 - 12:04 | 3377355 Super Broccoli
Super Broccoli's picture




Tue, 03/26/2013 - 12:04 | 3377356 ziggy59
ziggy59's picture

This whole fiasco is Abbott and Costello meets the 3 Stooges..
Yes its a Mad, Mad, Mad, Mad, World

Tue, 03/26/2013 - 12:06 | 3377376 ziggy59
ziggy59's picture

Did the same person that coaches those to state "they didnt say that" coin the term, "You didnt make that", too?

Tue, 03/26/2013 - 12:53 | 3377616 zenshi
zenshi's picture

I'm Portuguese and I can confirm that the communication skills of our government are similar to that of an ape... and Gaspar is the champion of failed PR, he is a simple tecnocrat that is/was in good favor of the eurocrats and good with excell spreadsheets (although most if not all his neo-classical models failed miserably to predict anything whatsoever), that's why he was chosen for the job, he's not a Finance Minister, he's an Insolvency Administrator, a bad one at that.

People have a very left-wing orientation in Portuguese politics, Communism is legal, other left-wing extremist parties are also allowed, libertarians are considered right-wing extremists, we reap what we have sown...

Tue, 03/26/2013 - 16:02 | 3378637 thisandthat
thisandthat's picture

Ideology really has nothing to do with it - that's just a smoke screen; competence and ethics have, and that is the problem, worldwide - those who brought the world to this situation we're from both "left" and "right", but more accurately were plain incompetents or crooks (or both...).

Tue, 03/26/2013 - 12:54 | 3377625 Fix-ItSilly
Fix-ItSilly's picture

How is it that the self proclaimed paragon of finance, the UK, has yet to develop a plan for (4) Laiki bank branches in London, but Greece has resolved ownership and operation of its Cyprus bank subsidiaries? 

And what role have these UK branches played during this brutal period of Cypriot capital controls?

Tue, 03/26/2013 - 13:03 | 3377666 zenshi
zenshi's picture

I work with precious metals btw and I'm full long on physical silver atm, I might be left with no more than barbaric relics, but I have a feeling that when that happens, I'll be one of the few that still has anything left at all.

I would urge any ZH reader to spend a small portion of their time reading about portuguese politics, it's better than watching stand-up, small example, the Socialists (in Portugal they are supposedly sent a letter to the Troika 2 weeks ago saying that they wanted Portugal to have more time to pay but they would fully aknowledge and fulfill the obligations of the agreement, 2 days ago they sent another letter, they apparently changed their minds, want to bring down the social-democrat party (supposedly center-right) from Government and fully slash the agreement... The ex-Portuguese PM, the one who more than doubled our debt in 8 years and that was "alledgedly" involved in criminal dealings with some shady people on behalf of the portuguese government was now invited to be a political commentator on the state's owned television in prime-time, fun times indeed!

The lack of quality, absolute disregard for anything other than themselves and the sheer stupidity of our political class neve ceases to amaze me...

Luckily I work in precious metals investing and I have my share of silver for a rainy day.


Tue, 03/26/2013 - 15:23 | 3378381 paint it red ca...
paint it red call it hell's picture

I have been described as a barbarian at times in my adult life, so having barbarous relics is right in line with the character flaws.

What is interesting though is my lifelong ZH reading friend who has been trading the gold market since 400$, who is fully aware of the global grab of assets for bailouts, who realizes the fascist agenda of corp/political liaisons, who speaks knowledgeably on market manipulation, the security state and privatized profit with publicized risk.

This is a guy who despite knowing odds of terminal financial event risks, has done little to nothing to remove his future from harms way in this fiat farce of a world ponzi. A guy sitting entirely in cash, bank accounts, discount brokers and IRA's (and a small arsenal just cause he likes em). He declares "analysis paralysis" then retires to his sand hole for a little duck dynasty while he awaits the few years til the 59 1/2 mark to cash out his roth.

Its gotta be the fluoride in his water calcifying something cranial........

I can understand being unable to make a joe public fresh to waking up to take financial precaution, but it is almost intolerable to watch this fellow stand perfectly still while daring the global train wreck to, to engulf him.

Tue, 03/26/2013 - 15:17 | 3378328 Surprese
Surprese's picture

"Read my lips: no more taxes".

Tue, 03/26/2013 - 15:41 | 3378518 thisandthat
thisandthat's picture

Ok, let's clarify this once and for all:

Cyprus is a non-precedent; that is, it's not a precedent, until it is. There.

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