This page has been archived and commenting is disabled.

The Great British Cash EUxodus Begins

Tyler Durden's picture


UK's deVere advisory group reports, "more and more expats in Spain, Italy, Portugal and Greece are now not unreasonably worried for their deposits in these countries," and are seeing a "surge" in the number of British expats seeking advice about moving funds out of eurozone's most troubled economies. As EUBusiness reports, "Whether the institutions like it and accept it or not, there is a real risk of a major deposit flight from these countries as people feel their accounts could be plundered next." It is hardly surprising obviously (as we noted earlier the bid in German bunds) but we fear this escalation in cash exodus from the periphery will increase the need for a broader EU capital control scheme sooner rather than later.

Via EUBusiness,

Independent financial advisory company deVere Group on Tuesday reported a "surge" in the number of British expats seeking advice about moving funds out of some of the eurozone's most troubled economies following the Cyprus bailout deal.


According to deVere Group chief executive Nigel Green, "more and more expats in Spain, Italy, Portugal and Greece are now not unreasonably worried for their deposits in these countries."


He added: "Over the last week, since the messy deal to bailout Cypriot banks began, our financial advisers in these areas have reported a significant surge in enquiries from expats who are looking to safeguard their funds in other jurisdictions which are perceived to be safer.


"Whether the institutions like it and accept it or not, there is a real risk of a major deposit flight from these countries as people feel their accounts could be plundered next."




Jeroen Dijsselbloem, who heads the Eurogroup of finance ministers, said the costs of bank recapitalisations should not fall on tax payers, but on bondholders, shareholders and, if necessary, uninsured deposit holders.




- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 03/26/2013 - 13:55 | 3377889 wee-weed up
wee-weed up's picture

Giant sucking sound...

Tue, 03/26/2013 - 14:01 | 3377914 kliguy38
kliguy38's picture

.here is where the law of unintended consequences has boxed them into a corner. Without "capital controls" like yours the money will flow OUT of the peripherals like spain and italy etc into Swiss and German banks.....BUT With capital controls the "EURO ZONE" cannot function without capital freely moving across borders....CAPITAL CONTROLS MUST BE IMPLEMENTED but at the same time Captital controls will destroy the the Euro economy growth....checkmate......They are between a rock and a hard place.....

Tue, 03/26/2013 - 14:10 | 3377954 ZerOhead
ZerOhead's picture

So this is how 'The End Of The World' begins...

Not with a 'Bang' or a 'Whimper'...

but a terminal case of 'the runs'...


Tue, 03/26/2013 - 14:15 | 3377992 Groundhog Day
Groundhog Day's picture

Dow will be 15000 and spx will be 1600 by the end of the week and all will be well.  Stop worrying so much.  Do you understand that their are genius's like Bernake and krugman who know how to resolve these issues.  They are experts and have got our backs.


Sheep # 86868531

Tue, 03/26/2013 - 14:38 | 3378105 Ying-Yang
Ying-Yang's picture

"now not unreasonably worried"

This quote hurts my head. (sarc)

Tue, 03/26/2013 - 14:42 | 3378123 worbsid
worbsid's picture

That '86868531' is tattooed on your forearm, right.

Tue, 03/26/2013 - 17:34 | 3379033 Joe A
Joe A's picture

Got it at his local FEMA camp

Tue, 03/26/2013 - 14:12 | 3377977 Skin666
Skin666's picture

Governments can never outgun free markets forever.

There may be light at the end of the tunnel

Tue, 03/26/2013 - 14:26 | 3378026 ZerOhead
ZerOhead's picture

"Governments can never outgun free markets forever."

I know I may be partially retarded, but personally I haven't seen anything remotely resembling a 'free market' anywhere in years. Now they are coming up with brilliant ideas like 'depositor haircuts' and 'capital controls'...

And as for 'The light at the end of the tunnel'?

I've got a bad feeling as to what that is too...


Tue, 03/26/2013 - 14:52 | 3378173 Free Markets
Free Markets's picture

You all need protected for your own good.  Resistance is futile.


Sincerely Sheep #35867423

Tue, 03/26/2013 - 15:01 | 3378237 MsCreant
MsCreant's picture

Best to get off the tracks. 

Tue, 03/26/2013 - 15:32 | 3378448 ZerOhead
ZerOhead's picture

I'm almost a mile in by boat Kiddo...

Tue, 03/26/2013 - 18:55 | 3379234 billybigrigger
billybigrigger's picture

"To the extent that there is a central bank governing the amount of money in the system, that is not a free market" -Alan Greenspan


Watch Jon Stewart's brain explode, and then implode simultaneously (US Only):


For those outside US, found a transcript of the exchange:

Tue, 03/26/2013 - 14:26 | 3378039 Cycle
Cycle's picture


Tue, 03/26/2013 - 14:27 | 3378047 pods
pods's picture



Tue, 03/26/2013 - 14:35 | 3378088 duo
duo's picture

those free markets then change into black markets

Tue, 03/26/2013 - 14:13 | 3377986 machineh
machineh's picture

Since Cypriot capital controls will be the de facto model, they have to be drafted carefully. It might take longer than Thursday.

Advisors from the IMF, the Federal Reserve, FinCen, the Bank of England, the Argentine government, and the Church of Satan are offering technical assistance.

CAPITAL CONTROLS, bItCHez. When you can't (or won't) fix the structural problem, fight the symptoms! (and punish the victims).

Tue, 03/26/2013 - 14:34 | 3378083 kchrisc
kchrisc's picture

"...fight the symptoms and punish the victims." Is that like "punish the monkey and let the organ grinder go?"



Tue, 03/26/2013 - 15:10 | 3378038 FL_Conservative
FL_Conservative's picture

Who could have guessed that this would happen, eh?  LOL!  Unfortunately, the masses keep thinking they're securing their wealth when they move funds from one country to the next, when it's all relative, because the same "illness" can (and probably will) befall all countries that have embarked on broad currency devaluation policies.  Quit playing THEIR games (the banksters) and play YOURS.  BUY PM's.

Tue, 03/26/2013 - 14:54 | 3378178 Dre4dwolf
Dre4dwolf's picture

I have the solution, reverse capital controls and debt forgivness.

Forgive all debts

Raise Depositor Interest Rates to the effected areas


Sit back and drink lemonaid while the economy recovers and the people adore you.


O wait, they dont want a recovery, they want despotism... in that case, they can just steal everyones money and shoot the protestors. 

Tue, 03/26/2013 - 16:23 | 3378736 goldinpenguin
goldinpenguin's picture

Capital controls on a little jerkwater like Cyprus might work but once you write a generic capital controls law between Euro members then it really isn't a common currency union anymore.

Tue, 03/26/2013 - 16:31 | 3378762 thisandthat
thisandthat's picture

Problem is unintended consequences don't stop there: flight of uninsured capitals will just put extra strain on banks, and insurance funds are dimensioned to save depositors of maybe one bank, not of every bank. That is the situation "insured" depositors have to face.

Tue, 03/26/2013 - 16:30 | 3378764 goldinpenguin
goldinpenguin's picture

Capital controls on a little jerkwater like Cyprus might work but once you write a generic capital controls law between Euro members then it really isn't a common currency union anymore.

Tue, 03/26/2013 - 21:29 | 3379843 Buck Johnson
Buck Johnson's picture

Bingo, the money is moving and it's going to safe areas regardless of the interest payout.  When you start to steal the money from deposits, it's officially at the end.

Tue, 03/26/2013 - 14:03 | 3377930 SeverinSlade
SeverinSlade's picture

Europeans should just convert their Euro fiat trash into physical PMs or bitcoins.

Tue, 03/26/2013 - 14:06 | 3377949 Dr. Richard Head
Dr. Richard Head's picture

I love the smell of bank runs in the morning. - Rothbard on Fractional Reserve Banking, Bank Runs, and FDIC

Tue, 03/26/2013 - 14:07 | 3377950 fonestar
fonestar's picture

That's right.  How did these fools come into money in the first place?  Keeping money in a bank?  Needing advice on what to do?  Morons!  Hahaha.....

Tue, 03/26/2013 - 14:07 | 3377956 Joe Davola
Joe Davola's picture

Yeah, it's not like governments have ever confiscated, er bought, PM's from their citizenry at advantageous (for the gov) values before.

Tue, 03/26/2013 - 14:32 | 3378074 SeverinSlade
SeverinSlade's picture

If you subscribe to that defeatist mindset, then why own PMs at all?

Tue, 03/26/2013 - 15:14 | 3378307 Joe Davola
Joe Davola's picture

On a daily basis there are plenty of articles here detailing the size of liabilities worldwide, as we continually see nothing will stand in the way of using other people's assets to cover these shortfalls - law be damned.


As Elvis advised:  I used to be disgusted, but now I try to be amused  - just not feeling the amusement today.

Tue, 03/26/2013 - 14:23 | 3378030 ElZorillo
ElZorillo's picture

Hell yeah bitcoin.. a real safe haven for your wealth..


smear that with a shitload of sark

Tue, 03/26/2013 - 14:34 | 3378085 SeverinSlade
SeverinSlade's picture

Hey, I'm not a huge supporter of bitcoin myself.  But at least bitcoin isn't centrally controlled/manipulated.  Better to own fiat that isn't owned by the CBs (yes, yes I know bitcoin isn't "technically" fiat to all you bitcoin fanatics that were ready to pounce).

Tue, 03/26/2013 - 13:55 | 3377890 Dull Which
Dull Which's picture

Where the hell are they going to go? I cannot believe, for example, that the UK Government would not (be pressured to) do a Cyprus even though it's not a Euro country.

Tue, 03/26/2013 - 13:59 | 3377910 ParkAveFlasher
ParkAveFlasher's picture

Hey, we have lots of houses here in the US.  And, they all have marble countertops on the kitchen islands.  That's right, all of them. 

You Brits like marble countertops, yes?

We even speak English.

It's never been a better time.

Tue, 03/26/2013 - 14:01 | 3377919 fonzannoon
fonzannoon's picture

I think you are right parkave and so is the main article linked to ZH. This whole thing could be one giant plan to get people to spend.

Tue, 03/26/2013 - 14:14 | 3377947 ParkAveFlasher
ParkAveFlasher's picture

Thanks for the endorsement Fonz. Probably good for 15-20 uparrows in itself.  Gotta monetize those...

My thesis from the "Euro bond" thread:

The scenario I'm tossing around is this.  Key assumption is that Ben prints but the Euro committees do not:

1) Big depositors in Euro zone go into hiding.  Euros go under mattresses, into hoards, out of circulation.  Euro scarcer, therefore stronger.  Demand is inertial.

2) Some big depositors exchange to dollars, because Ben would never bail in.  Ben is your friend.  Euros are exchanged, handed in, and return home. If they are not recirculated, Euro scarcer, therefore stronger. Demand for it is still inertial.

3) US economy keeps jackknifing left-to-right, Ben hits the gas.  All that converted wealth becomes diluted by sudden dollar weakness.  Now the big depositor would be doubly screwed to reconvert back to the Euro which the big depositor was a party to making strong on that initial conversion.  Euro still scarce, therefore stronger. Demand for it accelerates.

4) What we are looking at is a rotating pan-Atlantic di-polarity savings trap. There is certainly collusion between banks in the US and Europe. Bernanke sucks, Brussels blows.  Or vice versa, depending on conditions.  Whatever configuration necessitates the earner/saver at the fulcrum of their teeter-totter is what will be.  It's really very simple, just massive in scale and elaborate up close. we have capital flight from one region meets waiting market in another.  Substitute "new US bank deposits" in point number 3 for "down or cash payments on real estate" in this latest scenario.  Either/or. Rinse, repeat.

It's a fucking multi-continent wealth-shearing dynamo.

Good news for US homeowners is, there's a whole continent full of "bigger suckers" about to wash in on the tide of European deflation.

Tue, 03/26/2013 - 14:33 | 3378072 fonzannoon
fonzannoon's picture

It is an interesting theory man. There is something big afoot. I tend to fall in line with the thinking on here that they are purposefully cracking down on safe havens to flush that money out into the economy. They may truly be at that desperation point. I mentioned elsewhere I was at one of the largest chain restaurants in America this am across from a huge shopping center and they were not accepting anything above $20.

That blew me away. If I was a big cash guy I would see that sign and freak the hell out. I'd start spending those big bills as fast as humanly possible. The writing is on the wall. 

I can't wrap my head fully around the multi continent aspect of it but I step back and see this being globally coordinated to flush cash of any currency out into the open.

Tue, 03/26/2013 - 14:55 | 3378191 ParkAveFlasher
ParkAveFlasher's picture

Right, at least in the US, they'll make up a lie or objectify a dastardly scarecrow enemy ... in our case I'll say, "Counterfeiters are ruining the economy!  No more $100 bills!  They might be poisonous!" which is of course DE FACTO CAPITAL CONTROL.

The multi-continent aspect can be imagined like the mechanical pumps of a dialysis machine:

The pump is a single arm on an axis.  One side goes up, the other down, in reality they are moving clockwise in tandem and are a whole, single mechanism.

I'm no Tyler, I'm no Jim Willie, I'm just saying, I can see it happening in slow motion.

Tue, 03/26/2013 - 15:09 | 3378260 centerline
centerline's picture

I tend to agree - adding in the geopolitical pressure.  A big, ugly chess game.  Fiat/debt is the weapon of war.

Simply amazing to watch... even if it is impossible to figure out exactly who is pulling what string.   As an example, it is quite clear that no one (even politicians) are stupid enough to simply grab deposits.  And if they tried, EU leaders would have slammed it immediately.  That leaves us with the only logical conclusion that it is absolutely on purpose and part of a much larger play.  The risks are high here, so it is a very big play.  The chips have been pushed to the middle of the table.  My jaw is on the floor at this point.

Tue, 03/26/2013 - 15:07 | 3378264 fonzannoon
fonzannoon's picture

I hear you. I would say scenario's like these are so incredibly accurate someone somewhere just fell off their chair in Utah reading your post....or we have overestimated these assclowns so much it's amazing.

Tue, 03/26/2013 - 15:16 | 3378319 centerline
centerline's picture

It's a big club, but were not in it!  lol.  I think most politicians make perfect "tools" due to the predictability of greed.  The system policing itself now like most other parts of society.



Tue, 03/26/2013 - 15:26 | 3378396 ParkAveFlasher
ParkAveFlasher's picture

No, we haven't overestimated the damage they could do.  I don't believe so.  And to Centerline's point, they have to make changes in tiny increments and in perfect sequence.  I think you can look at it like defusing a bomb, or even like assembling one.  Baby steps. 

Tue, 03/26/2013 - 18:37 | 3379225 slowginfizz
slowginfizz's picture

I wonder how your observation in the restaurant correlates to the ZH article (weeks ago)about how the Treasury has been reducing the production of every bill except for the hundred? Now capital controls on depositors.  This is all choreographed.   


Tue, 03/26/2013 - 14:13 | 3377985 otto skorzeny
otto skorzeny's picture

hurry up before blackrock buys all of the foreclosed ex-meth houses in Phoenix and New Mexico to rent to illegals

Tue, 03/26/2013 - 14:22 | 3378025 kalasend
kalasend's picture

I fucking hate marble countertops.

And what is American's problem with modern house? You drive by any American neighborhood and 99% of the houses are built like they were 50 years ago.

Actually 50 years ago there were at least something called the mid-century moderns. Now all house builders go backward.

Tue, 03/26/2013 - 14:27 | 3378048 ParkAveFlasher
ParkAveFlasher's picture

How's that Mediterrenean villa working out for ya, mate?

Now sign right here, and ... here, and one more right here.

Tue, 03/26/2013 - 15:04 | 3378197 Kirk2NCC1701
Kirk2NCC1701's picture

The time to buy these is when there's blood in the streets.  Remember?  E.g. my sister bought a nice house and land in Croatia (with amazing view of the Adriatic), when they were fighting the Serbs in the 90's.  For what you pay for a car.  Don't know about your car, but her place is now even more amazing with each year. 

I'd target Spain, Portugal, Italy right after they collapse.  Better recovery prospects than South Chicago.

Tue, 03/26/2013 - 15:08 | 3378279 ParkAveFlasher
ParkAveFlasher's picture

I imagine that her success is driven by doing her homework, paying cash, having an existing income spoken for or a very solid, good plan for new income, and beating the crowd - which implies beating the profiteers who would feed the crowd when the crowd can't help themselves. 

Tue, 03/26/2013 - 16:17 | 3378711 Kirk2NCC1701
Kirk2NCC1701's picture

You imagine correctly.

Tue, 03/26/2013 - 15:00 | 3378228 jmcadg
jmcadg's picture

Sorry you can keep your Meth Labs, I prefer boating trips ;)

Tue, 03/26/2013 - 13:56 | 3377897's picture

More Miami condo buyers!

Tue, 03/26/2013 - 14:10 | 3377970 ParkAveFlasher
ParkAveFlasher's picture

Yes!!  MOAR English lobsters cruising around Miami Beach looking for empanadas!

Tue, 03/26/2013 - 13:57 | 3377902 ekm
ekm's picture

I just can't see how this can go ahead for longer than few weeks.


Pre-planned collapse. Obama must have refused to provide more money to europe.

Tue, 03/26/2013 - 14:01 | 3377920 Bastiat
Bastiat's picture

As if Obama could make such a decision.

Tue, 03/26/2013 - 14:05 | 3377944 ekm
ekm's picture

Regardless of who commands him, LEGALLY, only the president can make such a decision.

Tue, 03/26/2013 - 14:07 | 3377952 icanhasbailout
icanhasbailout's picture

"Legally"... ROFLMAO  *snicker* LOL *giggle*

Tue, 03/26/2013 - 14:11 | 3377978 ekm
ekm's picture

It may sound funny, but I'm being quite serious.

Tue, 03/26/2013 - 14:17 | 3378002 Tinky
Tinky's picture

Yes, and Congress *must* authorize war, which also sounds funny.

Tue, 03/26/2013 - 14:22 | 3378028 ekm
ekm's picture


The president can authorize war. Congress must only FUND war.


How did Vietnam end? Congress defunded it, hence withdrawal.

Tue, 03/26/2013 - 14:27 | 3378049 NotApplicable
NotApplicable's picture

And every last one of those "leaders" will do what their handlers tell them to do.

You sound like a puppet-show addict.


Tue, 03/26/2013 - 14:29 | 3378052 ekm
ekm's picture

It has been, it is and it always be a puppet show.

If you read history, you'd easily understand this.

Tue, 03/26/2013 - 14:29 | 3378056 Tinky
Tinky's picture

I'm referring to formal declarations of war, which are circumvented, of course.

Tue, 03/26/2013 - 14:33 | 3378079 ekm
ekm's picture


Tue, 03/26/2013 - 14:27 | 3378042 ekm
ekm's picture

By constitution, Boehner is way more powerful than Obama since he's got the purse.

Republicans can decide to fund or defund. Only that they are not republican. Most of the repubs would easily be dems.

Tue, 03/26/2013 - 15:41 | 3378516 akak
akak's picture

I always suspected that Boner carried a purse.

Tue, 03/26/2013 - 23:13 | 3380119 mkhs
mkhs's picture

They prefer  the term  "man bag."

Tue, 03/26/2013 - 14:38 | 3378109 ekm
ekm's picture

I'm working and blogging simultaneously.

You know what I mean.

Tue, 03/26/2013 - 15:28 | 3378419 ziggy59
ziggy59's picture

They do whatever the fuck they want when they want...there is no real rule of law..
Except when its time to pay taxes, then the law stands firm

Tue, 03/26/2013 - 13:57 | 3377904 fonzannoon
fonzannoon's picture

Uncle Jamie Dimon welcomes you with open arms.

Tue, 03/26/2013 - 14:00 | 3377913 ATM
ATM's picture

I thought those were tentacles? Or are those testicles?

Tue, 03/26/2013 - 14:16 | 3377998 ParkAveFlasher
ParkAveFlasher's picture

Tentacles.  N-T.

Tue, 03/26/2013 - 14:49 | 3378152 dtwn
dtwn's picture

Ooooohhhhhh. . . . . . . tentacle porn!

Tue, 03/26/2013 - 15:16 | 3378320 MsCreant
MsCreant's picture

Tentacles = Lloyd = Goldman Sachs

Testicles = Man Sack

Ball-less needle dick = Jamie Die Man

I hope this helps.


Tue, 03/26/2013 - 15:35 | 3378472 ZerOhead
ZerOhead's picture

Hey lady... easy on us 'needle dicks'...

And the balls are there if you look real closely... :)

Tue, 03/26/2013 - 14:30 | 3378059 ZerOhead
ZerOhead's picture

Bank-on you crazy Dimon...

Tue, 03/26/2013 - 15:08 | 3378280 Kirk2NCC1701
Kirk2NCC1701's picture

Of course he welcomes you with open arms.  Chase charges higher fees than any of these EU banks I know of (or deal with).  Maybe that's why he's richer... Americans will take the fees up their... all year long.

Tue, 03/26/2013 - 13:59 | 3377908 j0nx
j0nx's picture


Tue, 03/26/2013 - 13:59 | 3377909 Cdad
Cdad's picture

Continent wide capital controls and deposit confiscation schemes/taxes/raids/heists will work...only if they are enacted very quickly.  Ask Cyprus.

Tue, 03/26/2013 - 14:02 | 3377921 ATM
ATM's picture

They will work until there is no food on the shelves and riots in the streets.

Tue, 03/26/2013 - 14:19 | 3378008 Winston Churchill
Winston Churchill's picture

A lot of the English can and do grow their own food.

Even I had an allotment, and grew veggies when I was there at one point.

If the UK domino falls the US won't be far behind.The UK is still by far the

biggest investor in the states ,and vice versa.

Tue, 03/26/2013 - 15:01 | 3378240 Key-Rick
Key-Rick's picture

If you're not growing at least some of your food right now, you're nuts.  I've got 14 rows planted and coming up nicely (along with 2 cross-pollinating apple trees).

Victory garden, bitchez!

Tue, 03/26/2013 - 15:34 | 3378459 icanhasbailout
icanhasbailout's picture

An apple a day will keep you sick and tired of apples after about two weeks.

Tue, 03/26/2013 - 14:00 | 3377915 The Big Ching-aso
The Big Ching-aso's picture

I hope they can keep that stiff upper lip when the banks tell them, "What money?"

Tradition is important.

Tue, 03/26/2013 - 14:01 | 3377917 Börjesson
Börjesson's picture

And where are they going to flee to? Back to the pound? They'll get at least as fleeced there too, only through inflation instead. Somehow, confiscation is actually a more honest way of doing it.

Tue, 03/26/2013 - 14:24 | 3378032 LynRobison
LynRobison's picture

Yeah, where indeed. 

Just spit-balling here...going out on a limb... taking a shot in the dark... how about precious metals? 

Yeah, I know, you put your money in a gold or silver ETF, and then if the financial system holds together, your investment never grows. And if the financial system collapses, you can't collect. So what to do? What to do?

Hmmm, hey wait a minute! What about physical precious metals? You know, actually taking physical delivery of the physical metal? Sure, you've got to find a secure place to store your PMs. A bank vault might be problematic, because if the bank closes, you don't have access to your PMs any more. Or the bank might sell your gold to someone else without your knowledge. But what about a private vault or your own safe? Hmmm. 

Oh, I know, people who would put their wealth in precious metals that way are nut cases. I mean, there is no way that today's financial system will ever actually collapse! Let's not get crazy!

So, I guess stocks must be the way to go. Afterall, that is what our central bank masters would like us to do, so stocks must be ok. Party on!


Tue, 03/26/2013 - 14:01 | 3377918 SpiceMustFlow
SpiceMustFlow's picture

The socialist snowball gathers speed, flee the village!!

Tue, 03/26/2013 - 14:03 | 3377923 dick cheneys ghost
dick cheneys ghost's picture

There are plenty tarp-bailed out, insolvent, mark to fastasy banks right in the 'city of london'..............right Nigel?

Tue, 03/26/2013 - 14:03 | 3377928 JPM Hater001
JPM Hater001's picture

"sooner rather than later"

Can you spot the understatement of the decade?

Tue, 03/26/2013 - 14:02 | 3377929 whisperin
whisperin's picture

Think large multinational corporate deposits! Annnnd......we're gone.

Tue, 03/26/2013 - 14:09 | 3377963 Dr. Richard Head
Dr. Richard Head's picture

I would suggest that gone means to the Rockefeller Group.  Give them a call to ask about your money - 212-282-2000

Tue, 03/26/2013 - 14:03 | 3377931 Toronto Kid
Toronto Kid's picture

Teller at ScotiaMocatta said today they were out of gold Kruggerands, Pandas, Eagles, Buffalos. Gold Maples in stock and 1/4 oz Sovereigns still present in the vault.

Tue, 03/26/2013 - 14:13 | 3377983 NoWayJose
NoWayJose's picture

Banks are paying only a tiny bit more in interest than you earn on your PMs, but PMs give you inflation protection and if you own physical, you make it harder for the thieves to take it away from you.

Tue, 03/26/2013 - 14:05 | 3377932 q99x2
q99x2's picture

That giant sucking sound is Jim Carry in Bloomberg's office.

BitCoin at new all time high: Last price::$79.72001

Tue, 03/26/2013 - 14:16 | 3377973 Pseudo Anonym
Pseudo Anonym's picture

except the volume is quite low; and, counter-intuitively, all the action appears to be in the usd as opposed to the euro where one would expect most of the action would be after cyprus

Tue, 03/26/2013 - 14:13 | 3377987 JustObserving
JustObserving's picture

Bitcoin up 64% since Cyprus crisis.  Silver down a bit. Silver would be over $47 an ounce if it had replicated bitcoin's gain.

It is a bizarro world where real money gets hammered while fiat currency is imploding.

Tue, 03/26/2013 - 14:23 | 3378031 Citxmech
Citxmech's picture

There will be a day when the supply of physical becomes so tight that it cannot be ignored anymore.  That'll be the moment when the real price of physical recouples.  Until then, BTFD.

Tue, 03/26/2013 - 15:16 | 3378329 Kirk2NCC1701
Kirk2NCC1701's picture

If I were a UK or Russian person trying to find a new home for my paper/fiat money, I'd buy up PM by the fucking TON, and keep it under armed guard at my Mediterranean villa that the desperate Spaniards, Portuguese, Greeks, Italians or Cypriot sold me.

I'd thus precipitate a bank plus PM run, by drying up the supply for PM billion.  If the BRIC+ CB's aren't doing the same thing already.

Damn those fiat-CBs' to hell!  Every last one of them.

Tue, 03/26/2013 - 14:31 | 3378066 seek
seek's picture

Yes, several of us have noted this, PM price moves are in lockdown. I think one of bitcoin's move valuable aspects right now is that it's laregely immune from manipulation, so it's one of the few barometers TPTB can't tamper with.

Look at the gold COMEX inventory here (select 1M):

The market is behaving rationally (sucking up AU) even if the prices aren't (flat on increased demand, really?!) 12% decline in inventory in one month, with a 1% price move in the same time frame.


Tue, 03/26/2013 - 14:49 | 3378128 Pseudo Anonym
Pseudo Anonym's picture

i dont pretend to be an expert on btc, but i disagree w/ this

bitcoin's move valuable aspects right now is that it's laregely immune from manipulation

the behaviour of btc reminds me of penny stock moves.  it would not be inconceivable for a number of large btc holders, each with multiple wallets of btc, just to shuffle btc around on low volume and driving prices up at the margin.  sure it would require some marginal capital but at this point it would appear that the greater fools from general public are ready to jump in while the pump and dump promoters bail out.  but hey, dont beat me up over this.  that's just what i think is happening.  this parabolic rise is not organically natural 

Tue, 03/26/2013 - 14:52 | 3378167 seek
seek's picture

This rise is too strongly correlated with the financial stress in Europe, and the major exchanges have waiting lists of people waiting for their documents to be processed (aka know your customer BS). Mt. Gox currently has about 6,000 waiting.

I think the rise actually is organic -- it's from a combination of panic and a rush to speculate, but it really doesn't look to me like it's traders gaming the value, just intense demand. I'm not saying it's not a bubble, just that the forces behind it are real rather than manipulation. The tricks we see with gold (short sales, forcing settlement in dollars, rehypothecation) can't be done in BTC, so it's comparatively immune to manipulation at the level we see in gold.

Tue, 03/26/2013 - 15:07 | 3378270 Pseudo Anonym
Pseudo Anonym's picture

why is the volume in usd so much higher than in euro?  would you not expect europeans and others (iran, argentina, russia) panic into btc?  the usd is relatively "safe" today.  imo, there is no fundamental reason why usd holders would be motivated to panic (at this time) and sell usd for btc.  one explanation is the one i gave above.  there could be 6000 waiting but are these new entrants or is most of the price generated by churn that attracts a dozen new btc buyers here and there?

Tue, 03/26/2013 - 14:04 | 3377935 Shaten
Shaten's picture

Someone name me a country where if you have money in an uninsured account you get to keep the money if the bank fails. Even in USA if you have more than 100000(250000 for a while) it vanishes.


Not like they didn't know, there is a sign on the front door telling you this???


If you have more than 100000 and your not deversified across accounts and countries you do it to yourself.

Tue, 03/26/2013 - 14:14 | 3377988 DosZap
DosZap's picture

Shaten, it's is STILL 250k per depositor................where are you getting they went back to 100k?.

According to my Bank, it's still 250k.

Tue, 03/26/2013 - 14:21 | 3378017 Shaten
Shaten's picture

it's still 250k thus why I put that number in parenthesis.

It was suppose to drop on December 31, 2013, though that may get extended.

Tue, 03/26/2013 - 14:32 | 3378071 Racer
Racer's picture

And tell me how are they going to pay for all these 250Ks? With  more printed money? Weimar knows all about wheelbarrows

Tue, 03/26/2013 - 14:05 | 3377939 Yen Cross
Yen Cross's picture

     Keep an eye on eur/gbp. I doubt that there will be huge flows back into GB.(jumping from one frying pan into another)

    Probably into Aus, Cad, US. Germany is buying Aus. dollar and bonds like crazy right now.

Tue, 03/26/2013 - 14:24 | 3378027 No Euros please...
No Euros please we're British's picture

For sure they won't be moving their money into RBS, they've already had (liquidity problems) computer problems that have frozen accounts for days.


Tue, 03/26/2013 - 14:05 | 3377941 teolawki
teolawki's picture

Reminds me of Indiana Jones and the Raiders of the Lost Ark. Merkel and company just had to see what was in the box. I guess they are finding out.

Tue, 03/26/2013 - 14:17 | 3378001 SillySalesmanQu...
SillySalesmanQuestion's picture

Close your eyes...don't look.

Tue, 03/26/2013 - 14:25 | 3378036 No Euros please...
No Euros please we're British's picture

You mean wearing those Nazi uniforms and everything?

Tue, 03/26/2013 - 14:58 | 3378217 teolawki
teolawki's picture

I'm not so sure about the Nazi uniforms, but the melting faces definitely look the same.

Tue, 03/26/2013 - 15:00 | 3378231 Joseph Jones
Joseph Jones's picture

Another homage to jews and Rabbinical Talmudism: Is there any popular mythology in the west concerning Germans in which Germans do not symbolize murder, rape, pillaging, and holocaustianity of Jews?  Especially myths created by Hollywood and even more so Jewish scum bags like Steven "The Rabbi" Spielberg.

All the west kissed jewman Spielberg's ugly Rabbi ass for his "great" line from the Talmud in Schindler's List: "If you save one life, you save the whole world."  One little Talmudic Jewish problem with this line.  It's a lie.  The actual Talmudic line is: "If you save one Jewish life, you save the whole world."  Sorry, you stupid, gullible, idiotic goyim.  Your jewish masters love passing you from jew to jew master by the ring in your nose.

I will pay money for any example in Western mythology with an image of WW2 era Germans where they do not appear as Hitlerian causers of holocaustianity.

How can you not laugh in any jews face for claiming they descend from Abraham the Palestinian when their very genetic DNA proves they came from NW Turkey/Khazaria, a war loving blood thirsty group of scum bags if ever such people existed.    

Tue, 03/26/2013 - 15:41 | 3378464 Debt Slave
Debt Slave's picture

Spielberg. Appropriate name for a bullshitter.

spiel  (speel, shpeel) Informal n.

A lengthy or extravagant speech or argument usually intended to persuade. intr. & tr.v. spieled, spiel·ing, spiels

To talk or say (something) at length or extravagantly.

Example: I listened to the salesman's spiel but still refused to buy anything.
Tue, 03/26/2013 - 16:30 | 3378768 BobRocket
BobRocket's picture

"I will pay money for any example"


Das Boot


Now give 10 bucks to the first passerby you meet.


Tue, 03/26/2013 - 16:43 | 3378830 Kirk2NCC1701
Kirk2NCC1701's picture

Forgive my ethnic ignorance here, and sorry ZH'ers for digressing from the main topic, but are you saying that the ppl we know as 'Jews' are not the same ones from the Bible?  Or are you referring to a subset (from parts of Central Europe)?

And, BTW, "Spiel berg" = 'Play hill' translated from German, which seems perfect for 80% of translation from Yiddish.

Tue, 03/26/2013 - 14:08 | 3377958 fijisailor
fijisailor's picture

Ok so depositors over 100k lose in a bank failure.  Does that mean they need to contribute to a bank rescue?

Tue, 03/26/2013 - 14:19 | 3378013 DosZap
DosZap's picture

Ok so depositors over 100k lose in a bank failure.  Does that mean they need to contribute to a bank rescue?

Not in the US.Each depositor is insure to 250k the only thing that REVERTED back to 100k were non interest bearing Unlimited business accounts.

Tue, 03/26/2013 - 14:08 | 3377960 NoWayJose
NoWayJose's picture

I cannot believe that this will be limited to UK investors, and deposit flight is certain to spread to every shaky EU country.  Way to go ECB, IMF and EU!

Tue, 03/26/2013 - 14:09 | 3377965 otto skorzeny
otto skorzeny's picture

dollar rips and ben shalom shits himself

Tue, 03/26/2013 - 14:11 | 3377976 yogibear
yogibear's picture

You have been warned by the world banksters/Money changers they will take money from accounts. 

It destroys all trust from the financial system.

It's everyone for themselves now. 


Tue, 03/26/2013 - 14:19 | 3378009 ITrustMyGut
ITrustMyGut's picture

maybe this is their wicked plan.. capital flees UK insolvent banks... then haircuts there as well.. it truely is a shell game, with a touch of musical chairs.. bank to bank to bank.. where it stops.. no body knows.. except for this one rule.. no bank is safe.. anywhere .. at any time.. PERIOD

Tue, 03/26/2013 - 14:13 | 3377982 Diplodicus Rex
Diplodicus Rex's picture

Now there's no chance that Mr Green is talking his book, is there?

Tue, 03/26/2013 - 14:19 | 3378012 HoaX
HoaX's picture

This exactly.

Tue, 03/26/2013 - 14:22 | 3378029 CaptainSpaulding
CaptainSpaulding's picture

Who is Mr. Green?

Tue, 03/26/2013 - 14:19 | 3378010 Joe moneybags
Joe moneybags's picture

With a 12 handle on the VIX, the U.S. market is hardly giving any credence to a European bank run.  Our market, of course, was "wrong" prior to the 2008 meltdown, wrong in the beginning of Year 2000, etc., but "right" about 90% of the time.

So, only buy you puts, and your UVXY calls after the SPX has a big >2% down day.

Tue, 03/26/2013 - 14:19 | 3378011 straightershooter
straightershooter's picture

Run, Forex, Run...... Diesel Bomb is coming.....

Tue, 03/26/2013 - 14:32 | 3378065 NotApplicable
NotApplicable's picture

Well played.

Tue, 03/26/2013 - 14:20 | 3378015 Paracelsus
Paracelsus's picture

I always thought fractional reserve banking could not exist without depositor insurance.

I never thought I would be proved correct and incorrect at the same time.

I agree that capital controls will not work in a free market (tee hee) system.

There must be a lot of European bankers looking over their shoulders these days.

Bullish for polonium rehab centers,and charter aircraft for stranded,broke hookers. 

Tue, 03/26/2013 - 14:21 | 3378022 Jason T
Jason T's picture

thinking that like the Asian crisis in 1998 gave markets a beating, this euro crisis will give markets a beating, but the dow and S&P will soar to new highs in 2015 before peaking and then crashing into the US's turn on this sovereign debt crisis.

Tue, 03/26/2013 - 14:33 | 3378077 SmallerGovNow2
SmallerGovNow2's picture

Your crystal ball see's calm and ever increasing markets through 2015?

I better go all in then (sarc/)...

Tue, 03/26/2013 - 14:24 | 3378023 SillySalesmanQu...
SillySalesmanQuestion's picture

CNBS is providing comic relief currently with their "expert analysis" via The All-American Economic Survey...


Tue, 03/26/2013 - 14:41 | 3378117 It is a bargin ...
It is a bargin my friend's picture

CNBC UK/Europe lateley seems especially keen to talk about the "coming soon" normalization of interest rates, I often wonder who their target audience is , Traders know this is bollocks, they i know its bollocks, I know its bollocks anybody who may believe it is watching Judge Judy...very odd

Tue, 03/26/2013 - 15:22 | 3378364 Kirk2NCC1701
Kirk2NCC1701's picture

That pompous, self-righteous, know-it-all Judge Judy makes >$50M per year!  Why?  Good question.  Probably 'tithes' tons of it to good causes, so it's network-sponsered tithing in a way.  ;-)

Tue, 03/26/2013 - 14:32 | 3378064 EmileLargo
EmileLargo's picture

Get out of the Fiat Ponzi, buy physical shining yellow stuff and stick it in a vault. Never declare it and leave them to screw the fools who keep their money in bank accounts.   

Tue, 03/26/2013 - 15:28 | 3378416 Kirk2NCC1701
Kirk2NCC1701's picture

Last month I had dinner with 3 guys in San Fran (on biz trip).  One guy told us that when his father died, the lawyer called him with directions to hidden safe in the house.  Told him to get all its shiny contents and 'paper' out, w/o saying a word to anyone.  Contents now in new location of unspecified location.

Remember:  In a court of law, it matters not what you (or the other side) believe, but what you can prove.  No proof, no case.  Case closed.

Tue, 03/26/2013 - 15:42 | 3378523 Sandmann
Sandmann's picture

Wow ! An honest lawyer, he was so lucky !

Tue, 03/26/2013 - 15:44 | 3378531 Sandmann
Sandmann's picture

The Bank Robbers own the Banks...Trojan Horse

Tue, 03/26/2013 - 17:32 | 3379017 Uskatex
Uskatex's picture

So the guy told you this fact. He shouldn't have to.

Tue, 03/26/2013 - 14:31 | 3378067 Paracelsus
Paracelsus's picture

Gold should be much higher right now.This reminds me of the diamond cartel where they control this huge supply in Antwerp and Amsterdam,locked away,to support the price.

Besides Gold I wonder if I was the China Bank,I would slowly begin to dump T-bills on the market,grab the cash,buy physical. In time of war you can get whatever you require with physical. This is probably happening through off-shore chinese hedge funds as we speak.

This is the canary in the coal mine. Also,Bullish for pipeline disasters in southeastern Europe.

Tue, 03/26/2013 - 15:38 | 3378490 Kirk2NCC1701
Kirk2NCC1701's picture

[sigh]  Who really gives a damn about the gold price "should be much higher"?  You sound like just another speculator, looking to make a quick fiat-buck.  And then what!?

I am happy to keep it at affordable prices to keep stacking.  When it goes up, it will simply explode in fiat-price and guys like you and me won't get one single ounze of it on the market.

I treat it as a non-taxable, non-traceable, non-confiscatable, non-printable, non-inflationary asset.  That is also quite portable and fungible. It's the ultimate private store of value.  And please don't bore us with ROI, when we are now more concerned with Return OF Investments, not Return ON Investments.

BTDF and keep stacking.  Along with other "stuff of life" that you'll need first.

Tue, 03/26/2013 - 14:33 | 3378082 GamesMaster
GamesMaster's picture

deVere's are the biggest commission sharks in the 'independent financial advice' game! They'll be happy as a pig in shit helping all those worried expats shift their funds into one of their recommended 25 year savings plans......of course that'll be for a 10% upfront fee, plenty of trail commission and massive penalties for early redemptions! Searching 'deVere scam' brings up some cracking stories from the clients they've taken to the cleaners, these swines prey on anything with a pulse.

Tue, 03/26/2013 - 14:34 | 3378084 Atlas35
Atlas35's picture

Switzerland is still the place to deposit. I don't think Switzerland will ever implement wealth tax. There's a reason why Switzerland is Switzerland.

Offshore Banking Guise: Swissquote Bank

Tue, 03/26/2013 - 17:33 | 3379023 Tao 4 the Show
Tao 4 the Show's picture

They have had one for ages.

Tue, 03/26/2013 - 14:45 | 3378132 ZeroPoint
ZeroPoint's picture

Contagion alert! Zound da alahm!!! STABILITEE NAOW!!!!!



Tue, 03/26/2013 - 14:49 | 3378151 Super Broccoli
Super Broccoli's picture

that's it, tomorrow i'm opening an account in the cayman islands ... wait, what's their leverage ? what have they been investing on ? greek bonds, bank of cyprus shares, spanish real estate, american subprimes, CDS ?????

Tue, 03/26/2013 - 15:25 | 3378389 snblitz
snblitz's picture

Go for Belize.  Some of their banks are leveraged less than 4:1.  They are required, I believe, to be leveraged less than 12:1.

Of course, you must decide who to trust.  You can meet the Belize bankers if you travel there.  It is a nice vacation spot.

Tue, 03/26/2013 - 14:58 | 3378212 Clowns on Acid
Clowns on Acid's picture

"D_Boombloem, who heads the Eurogroup of finance ministers, said the costs of bank recapitalisations should not fall on tax payers, but on bondholders, shareholders and, if necessary, uninsured deposit holders. "

I don't see anything about the burden falling on PM holders, even if stored at a bank.

Tue, 03/26/2013 - 15:20 | 3378351 etresoi
etresoi's picture

" we fear this escalation in cash exodus from the periphery will increase the need for a broader EU capital control scheme sooner rather than later."

Get some current facts before sending pixels to screens.

Here in France, two weeks ago there was no problem withdrawing €1500. Last week, €500.  Today €300. Tomorrow, who knows?  It costs €150 to fill a car's tank. Perhaps we will feed the car on one day and feed ourselves, the next.

To transfer €10,000 from Switzerland to France costs €8.  To transfer €10,000 from France to Switzerland costs €1300.

Is this sooner?

Tue, 03/26/2013 - 15:24 | 3378372 smacker
smacker's picture


The European Single Market Treaty specifically prohibits any restriction on the free movement of people/goods/capital between EU member states. This treaty is/was perhaps the only good thing about the EU as Margaret Thatcher said, (but of course it could easily have been implemented without an EU-cratocracy).

Sadly, we know this treaty has recently been violated by Diesel-BOOM's Cyprus solution (exchange controls) and there are other examples of it being violated going back a number of years, not least by Tony Blair's UK govt when his Chancellor at the time (a Marxist called Gordon Brown) imposed severe limits on the quantities of booze/cigarettes that Brits could bring home into the UK from Europe, thereby saving themselves a lot of govt tax. It took several years of legal threats by the EU-cratocracy to get Brown's illegal rule lifted. And he used Paul Boateng as a scapegoat, sacking him.

We now see Brits wanting to move their € cash out of troubled ClubMed countries due to genuine fears of having it plundered by those governments. If exchange controls are introduced to prevent it, it will -- or should -- be the final nail in the coffin of the EZ and the EU.

Tue, 03/26/2013 - 15:45 | 3378546 Sandmann
Sandmann's picture

They will permit movement of capital under central bank supervision. The EU is currently dusting off a draft law to permit use of depositor funds in bailout situations

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