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Here We Go Again: EU Lawmaker To Push For Bail-In Resolution Law For Deposits Over €100K

Tyler Durden's picture





 

Here we go again:

  • EUROPEAN PARLIAMENT TO PUSH FOR DEPOSITORS WITH ABOVE 100,000 EUROS TO FACE BAIL-IN UNDER NEW BANK RESOLUTION LAW - EU LAWMAKER - RTRS

Basically, this is DieselBOOM ver 2.0. How long until someone scrambles to announce that this, too, was taken out of context?

More as we see it but the EURUSD sure isn't waiting. Instead, it is plunging.

 

Full Reuters article:

The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.

 

Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.

 

Jeroen Dijsselbloem, head of the Eurogroup of euro zone finance ministers, said on Monday that in future, the currency bloc should first ask banks to recapitalise themselves, then look to shareholders and bondholders and then "if necessary" to uninsured deposit holders.

 

Now the likelihood is rising that tough treatment of big depositors will be written into a new EU law, making losses for large savers a permanent feature of future banking crises.

 

"You need to be able to do the bail-in as well with deposits," said Gunnar Hokmark, an influential member of the European Parliament, who is leading negotiations with EU countries to finalise a law for winding up problem banks.

 

The European Parliament has an equal say alongside EU countries when deciding who must bear the brunt of future bank failures such as those now being seen on Cyprus.

 

"Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in," Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed this line.

 

The law, which will also introduce means to impose losses on bondholders, is due to take effect at the start of 2015. Germany wants provisions for bailing in bondholders and others in the same year, though that may be delayed.

 

The European Commission wrote the first draft of the law but left it to member countries and the parliament to decide whether and when savers should face losses, when a failing bank is being salvaged or shuttered. Earlier on Tuesday, it said only that such a step was possible.

 

Hokmark urged savers to check their banks' health before taking the risk of depositing money.

 

"If you put your money in Royal Bank of Scotland ... or Deutsche Bank, depending on how that bank is working you are taking a risk," he said. "You need to be aware that you are taking a risk.

 

"I want us to legislate in a way that makes investors aware of the risk," said Hokmark, adding that savers should be asking whether their bank is solvent. "The bail-in instrument is creating thousands and thousands of supervisory authorities."

 

Cypriot President Nicos Anastasiades agreed in a last-ditch deal to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's financial sector ran into trouble when investments in Greece went sour.

 

"The markets may be shocked but some principles have to be laid down," said one EU official, speaking on condition of anonymity, adding that it would be "unfair" for the new EU law to take a different approach to that used in Cyprus.

 


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Tue, 03/26/2013 - 10:51 | Link to Comment machineh
machineh's picture

Now 'the rich' means anybody with a $100K bank account.

(Yeah, I'm talkin' to you, Hillary.)

Tue, 03/26/2013 - 10:54 | Link to Comment King_of_simpletons
King_of_simpletons's picture

South Park's "Aaand it's gone" has special and direct meaning now a days. You deposit in the bank and it will just vanish. No need for derivative investments....... It will literally vanish.

http://www.youtube.com/watch?v=jrLbY4-Q99A

Tue, 03/26/2013 - 10:56 | Link to Comment CrazyCooter
CrazyCooter's picture

I have been expecting "the end" for so long ... and been wrong for so long ... now that it seems to be here, I can't believe it.

Am I my own contrary indicator?

Regards,

Cooter

Tue, 03/26/2013 - 10:57 | Link to Comment Cdad
Cdad's picture

No.  It's just a sign that you are not mentally retarded.  Good for you.

Tue, 03/26/2013 - 10:58 | Link to Comment Divided States ...
Divided States of America's picture

Funny, the Dow didnt even bulge

Tue, 03/26/2013 - 11:00 | Link to Comment camaro68ss
camaro68ss's picture

Those f***ing C*** suckers!

Way to install Confidence you jackasses

Tue, 03/26/2013 - 11:07 | Link to Comment Pladizow
Pladizow's picture

This stupidity must be orchastrated!

Tue, 03/26/2013 - 11:11 | Link to Comment camaro68ss
camaro68ss's picture

if you leave money in the bank now after all this, your a dumb ass.... I guess its a good way to get people off the sidelines to pump the markets more, until there is no cash left to spend.

Tue, 03/26/2013 - 11:20 | Link to Comment Stackers
Stackers's picture

EURUSD now in full retard mode as it made a 500bps down and 500bps move right back up in a matter of minutes

Tue, 03/26/2013 - 11:27 | Link to Comment Awakened Sheeple
Awakened Sheeple's picture

Fuck You Kevin Henry!

Tue, 03/26/2013 - 11:32 | Link to Comment Stuart
Stuart's picture

Revolutions start this way. 

Tue, 03/26/2013 - 11:38 | Link to Comment Comay Mierda
Comay Mierda's picture

what time is dancing with the stars on again?

Tue, 03/26/2013 - 11:43 | Link to Comment redpill
redpill's picture

Can someone explain why these stupid fucks would want to chase out all the large depositors from the EU?

Tue, 03/26/2013 - 12:38 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Peter Gibbons: This sounds familiar.
Michael Bolton: Yeah. They did it in Superman III.
Peter Gibbons: Ahhh, right.

Tue, 03/26/2013 - 12:44 | Link to Comment Tortfeasor
Tortfeasor's picture

Possible reasons:

1. To ramp stocks.

2. To consolidate banks (crush the little guy).

3. To get paper money out into the streets, then switch to all digital currency.

4. To watch the world burn.

Or,

5. Because they don't really know what they're doing.

Tue, 03/26/2013 - 11:36 | Link to Comment Rubicon
Rubicon's picture

This deserves a nobel prize... but im not sure which one...

Tue, 03/26/2013 - 11:39 | Link to Comment MsCreant
MsCreant's picture

Dynamite money... works for me.

Tue, 03/26/2013 - 11:49 | Link to Comment indygo55
indygo55's picture

You would think at least some of it would go into PM. Physical PM that is. But PM's dont really budge. Don't know why. Oh, never mind.

 

Tue, 03/26/2013 - 11:14 | Link to Comment Gief Gold Plox
Gief Gold Plox's picture

How in the name of Zues' butt can the EUR be going up among all this crap?

BIS hittin' the buy button like it's got an army of 13 year old girls on Bieber's facebook profile?

Tue, 03/26/2013 - 11:10 | Link to Comment NoDebt
NoDebt's picture

They're not trying to instill confidence.  They're going to suck all of southern Europe dry.  What they are saying, in so many words, is that only German banks are safe.  And people are believing it.  If you are with an insolvent bank in an insolvent country you're S.O.L.

Germany's pimp hand has been shown to be strong.  I think they just conquered Europe without firing a shot.

 

Tue, 03/26/2013 - 12:36 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Krugman just had a non-nocturnal emission.

The only thing better for Paul "I realize & used to teach that savings is a critical foundational pillar of enabling future economic growth, but that was then and this is now" Krugman would be if the deposits in excess of a sum certain amount were confiscated by the state in order to build The Government Window Breaking Device Machine Works Company, Plant No. 202-Union Local 903.

Tue, 03/26/2013 - 11:51 | Link to Comment Relentless
Relentless's picture

Send in the Sturmbankers

Tue, 03/26/2013 - 13:41 | Link to Comment Urban Redneck
Urban Redneck's picture

If they are trying to show German banks are safe... they are FUCKING STUPID.  The will wind up destroying the entire prime banking business in Europe to benefit of JPM (and the other TBTFs in the US) and their counterparts in Asia.  

Multinational homies don't play that confiscation game...

Tue, 03/26/2013 - 11:02 | Link to Comment Nothing To See Here
Nothing To See Here's picture

Because there's got to be something bullish in this news...

Tue, 03/26/2013 - 11:06 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

Shit.    When there's no cash left in the banks I guess a cashless society will be a piece of cake.

Tue, 03/26/2013 - 11:10 | Link to Comment Jason T
Jason T's picture

the dow has been poisened so many times, it has developed an immunity.

(bananas) 

Tue, 03/26/2013 - 17:04 | Link to Comment akak
akak's picture

What doesn't kill you only makes you ...... apparently even more retarded.

Tue, 03/26/2013 - 11:19 | Link to Comment geotrader
geotrader's picture

No, but BAC sure ain't liking it.

Tue, 03/26/2013 - 11:43 | Link to Comment RougeUnderwriter
RougeUnderwriter's picture

All of the money from these banks are going into it - it will go higher

Tue, 03/26/2013 - 11:01 | Link to Comment toys for tits
toys for tits's picture

 

"I want us to legislate in a way that makes investors aware of the risk," said Hokmark, adding that savers should be asking whether their bank is solvent. "The bail-in instrument is creating thousands and thousands of supervisory authorities."

No it's not, thousands and thousands of depositors will leave the banks, dumbass.
Tue, 03/26/2013 - 11:07 | Link to Comment CheapBastard
CheapBastard's picture

Why not make bankers personally liable for losses. I suspect they would limit their risk more. Probable decrease the number of failed banks to a handful instead of an epidemic.

Tue, 03/26/2013 - 12:24 | Link to Comment Acet
Acet's picture

For all the ranting about the evils of Socialism around here, people do seem to want things that amount to very expensive Socialism for the middle and rich classes.

 

There should be NO state-subsidized protection on deposits.

 

Sure, if some banks want to get together and setup and pay for a deposit protection scheme as a means of attracting deposits, go ahead and do it. Other things that they might do to attract deposits is to have NO investment banking operations at all and to keep their loans-to-deposits ratio as low as possible.

This would be a real Free Market in banking: people would need to look around and shop for the safest banks, maybe even *gasp* not keep all their eggs in the same basket, banks would need to be carefull so as not to scare deposits away. It would be a stable, robust system, completelly different from the immense, vampire populated castle of cards that passes for a financial system nowadays.

The perversion of the free market which is state protection for depositors is the main factor that allowed banks to take ever bigger risks without being punished by their customers for it.

 

Tue, 03/26/2013 - 21:41 | Link to Comment thisandthat
thisandthat's picture

There is no state subsidized deposit protection - current insurance is paid up by banks, same goes for insurance companies and pension funds. this is Eu legislation.

Thu, 03/28/2013 - 06:41 | Link to Comment Acet
Acet's picture

So why did the British and Dutch governments refunded depositors when the Icelandic banks collapsed?

You see, that EU law you mention only covers a very small amount: anything beyond that is guaranteed by the state. Also openly admited that the available money in those deposit protection funds would only be enough for the collapse of a couple of small banks, maybe one big one, which is why governments all around Europe keep intervening to save banks, from RBS to Dexia.

There is a de facto government guarantee on deposits across Europe.

Thu, 03/28/2013 - 11:04 | Link to Comment thisandthat
thisandthat's picture

They refunded because they chose to (politics and hoping to be reimbursed by Iceland), but Iceland isn't part of the Eu, so Eu guarantees don't apply there.

EU directive, not law, sets 100k coverage per holder, per bank (with exclusions), so in practice you could be insured for much more than just 100k, by holding multiple  accounts, with multiple holders, at multiple banks (and since funds are national, also in multiple countries), but anything above that isn't covered by anyone, unless someone chooses to (except in Ireland, where apparently there's no limit, and Denmark, 750k DK). You're right about the size of the funds, though - in Portugal, for instance, in 2011, it was .03% of deposits... if the fund isn't enough, it will resort to extra contributions or loans.

Portuguese fund's site: http://www.fgd.pt/en-US/Pages/inicio.aspx

Wikipedia: http://en.wikipedia.org/wiki/Deposit_insurance#European_Union (unlike what it says here, 100k is still valid in Portugal)

Tue, 03/26/2013 - 10:58 | Link to Comment Super Broccoli
Super Broccoli's picture

it's getting emotionnal ! i've been waiting for this for so long :-) 

Tue, 03/26/2013 - 11:02 | Link to Comment Groundhog Day
Groundhog Day's picture

wake up crazy,

Who said anything about it being over.  I don't see or hear a fat lady singing anywhere

Tue, 03/26/2013 - 11:22 | Link to Comment Stoploss
Stoploss's picture

WOW, that sure escalated quickly...

Tue, 03/26/2013 - 12:33 | Link to Comment gatorengineer
gatorengineer's picture

They are dropping financial nukes left and right but  the preses keep rolling on......

Tue, 03/26/2013 - 11:15 | Link to Comment persu
persu's picture

Isn't this just a confirmation of existing rule?

Doposits are covered up 100000 and anything over that is not?

This is like a discussion about credit risk in senior and sovereign bonds. Anyone investing should understand a possibility of loss. Why do we have a credit spread? That is called market discipline.

Tue, 03/26/2013 - 12:52 | Link to Comment flyingpigg
flyingpigg's picture

I don't believe it is because everything above 100k was at risk when the bank would fall over. With the new proposal it can be used by governments to "save" a bank when the government believes it's necessary. It basically makes it easier for goverments to confiscate savings above 100k.

With fractional reserve banking it's very easy to prove a bank can't meet it's promises. A negative comment from the Eurogroup is a death penalty for a any bank as soon as it erodes trust. 

Tue, 03/26/2013 - 11:20 | Link to Comment torak
torak's picture

MF Global was just the flag they ran up the flag pole to see which way the wind would blow after nuking the customers.  No riots in the streets, no assassination attempts on Jon Corzine, no legal repercussions, nobody goes to jail -- life is good for the Banksters. 

So, customers will allow themselves to be Corzined without a peep.  The Banksters now have carte blanche to rape and pillage at will. 

Let the Games begin...

Tue, 03/26/2013 - 12:54 | Link to Comment deKevelioc
deKevelioc's picture

They said that about the previous straw on the camel's back, too.

Tue, 03/26/2013 - 17:08 | Link to Comment akak
akak's picture

The problem there is that they keep jacking up the camel at the same time they keep adding straws to its back --- while overlooking, of course, the fact that the camel's internal organs are slowly being crushed in the process.

Tue, 03/26/2013 - 10:54 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

Did you forget that Congress is exempt from anything that prevents them from gaining more power and wealth?  You know like special healthcare, insider trading, balancing the budget, bribery, kickbacks etc etc

Tue, 03/26/2013 - 10:58 | Link to Comment CrazyCooter
CrazyCooter's picture

Nah, they will just trade it ... short ... long ... they don't care. I bet some back office bureaucrats in Brussels are glued to their eTrade accounts all day ...

Regards,

Cooter

Tue, 03/26/2013 - 11:39 | Link to Comment akarc
akarc's picture

"Isn't this just a confirmation of existing rule?"

And the rule is that rules no longer matter. I hate banks. Having said that how many people with their money in Banks have ignored the endless daily streams of news regarding bank money laundering, insider trading, off book transactions, ad infinitum and still keep their money in Banks without saying shit about any of it!

Where I grew up, if you let me take your freaking wallet guess what. I'll fucking take it again.

If you participate in a corrupt system then you deservedly suffer the consequences of doing so.  That is Karma. You can not blindly allow some one to rip you off and then fucking bitch about it. Get off your ass burn the banks down and then go to Washington and tell the Bankster/Corporate whore to get the fuck out of town.

It won't happen though cause the people will demand that the Bankster/corporate whores fix it for them?  

At some point in time you got to take personal responsibility. Sometimes that means taking an ass whipping.  And if ya can't handle that then go live on an island somewhere.

IT was the people that allowed this situation to become what it is. It is only the people that can fix it. 

Tue, 03/26/2013 - 10:50 | Link to Comment Racer
Racer's picture

This is definitely a signal to people to get the F&*k out of the banks and go to Bank of Mattress!

Tue, 03/26/2013 - 10:53 | Link to Comment Cdad
Cdad's picture

Quick...everyone transfer ALL CAPITAL to some bank in the Cayman islands!  We need warp speed in 3 minutes or we're all dead.

Tue, 03/26/2013 - 10:55 | Link to Comment Cdad
Cdad's picture

Quick...everyone...convert to US dollars right now...in the country where Ben Bernanke plops down $3 billion everyday and roles dem bones....

Tue, 03/26/2013 - 11:00 | Link to Comment CrazyCooter
CrazyCooter's picture

Clearly this is going to spread everywhere the way banks are so deeply in each others pockets.

Is the future simply capital controls across the entire devevloped world where the banks simply overtly "fee" us to death to keep their existance?

Regards,

Cooter

Tue, 03/26/2013 - 11:19 | Link to Comment scatterbrains
scatterbrains's picture

I hope that's not what gold's trying  to say.

Tue, 03/26/2013 - 11:34 | Link to Comment Stuart
Stuart's picture

no, gold is under full front manipulation attack... they're determined to keep it off the radar screen for they know if it enters the public's thoughts while they're raiding bank accounts, it'll head over the moon.   Buy physical and keep it outside the banking system is only answer here. 

Tue, 03/26/2013 - 17:05 | Link to Comment dicktator
dicktator's picture

BUY PHYSICAL BITCOINS !!!

Tue, 03/26/2013 - 13:04 | Link to Comment Abiotic Oil
Abiotic Oil's picture

If they get their fantasy of a cashless society there won't be anything to put in the mattress.

Since one would pretty much have to store their electronic fiat in a bank...

Long tangibles and black markets.

Tue, 03/26/2013 - 11:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

It's a case of the best looking ugly dog.

<Ole (USA) Yella wins by a nose.>

Tue, 03/26/2013 - 11:08 | Link to Comment Cdad
Cdad's picture

FUTURE FLASH:  Ben Bernanke announces that all US deposits over $100k must be immediately converted to shares of GE.

Tue, 03/26/2013 - 10:59 | Link to Comment MrNude
MrNude's picture

Long mattresses and portable deposit boxes!

Tue, 03/26/2013 - 10:50 | Link to Comment johnQpublic
johnQpublic's picture

evryone, every country?

Tue, 03/26/2013 - 10:54 | Link to Comment flacon
flacon's picture

Americans are safe. Don't worry. Nothing to see here. America is #1! U.S.A.! U.S.A.! U.S.A.! America is the bastion of Freedom spreading our wealth around the world via strong military. 

Tue, 03/26/2013 - 10:51 | Link to Comment Dull Which
Dull Which's picture

The game is rigged /up?

Tue, 03/26/2013 - 10:58 | Link to Comment DeadFred
DeadFred's picture

The game is being rigged by  the Germans. Remember that their goal is to run the whole casino so to predict where this show goes you need to figure what needs to happen to get them to goal. My guess is more crisis so that the desired rule changes can be made. I don't expect the 'Cyprus fix' to work even if that were possible because the Germans don't have their rule changes yet. Federation.

Tue, 03/26/2013 - 11:41 | Link to Comment blabam
blabam's picture

LUDICROUS SPEED! FORWARD! 

Tue, 03/26/2013 - 10:51 | Link to Comment fonzannoon
fonzannoon's picture

LOL

As Alaricbalth pointed out, those two banks may be open. So what is the point of all this? The money is still flooding out as we speak? You can't find this kind of comedy anywhere else.

Tue, 03/26/2013 - 10:52 | Link to Comment machineh
machineh's picture

You'd think the EU could monetize this high comedy by selling ads or something.

Tue, 03/26/2013 - 11:05 | Link to Comment CrazyCooter
CrazyCooter's picture

They securitized sub prime ... so why can't they securitize bail ins? People are dumb enough to buy this shit all along, not like they slept on a pile of books last night and got smart all a sudden.

They just aren't trying hard enough ... lazy bankers!

Regards,

Cooter

Tue, 03/26/2013 - 10:51 | Link to Comment toys for tits
toys for tits's picture

The Troika Template is here to stay.

Tue, 03/26/2013 - 10:51 | Link to Comment Racer
Racer's picture

This will hit businesses and also what about people selling/buying a house? You dare not risk doing any business or moving house now!

Tue, 03/26/2013 - 16:57 | Link to Comment saulysw
saulysw's picture

An excellent point. Unintended consequences, indeed....

Tue, 03/26/2013 - 10:52 | Link to Comment BlueStreet
BlueStreet's picture

Be careful Tyler you're gonna blind yourself with that crystal ball.  

Tue, 03/26/2013 - 13:24 | Link to Comment GolfHatesMe
GolfHatesMe's picture

very good, but I thought that blindness had a different cause

Tue, 03/26/2013 - 10:52 | Link to Comment achmachat
achmachat's picture

that's it.

NOBODY is going to trust the banks now, even if they come and say it's all been an April's fool joke.

Bank runs in 3... 2..... 1.....

Tue, 03/26/2013 - 10:51 | Link to Comment Darth Raider
Darth Raider's picture

Last one out turn off the lights

Tue, 03/26/2013 - 10:59 | Link to Comment Mark Urbo
Mark Urbo's picture

The lights have been out for more than a week !

..well, except for the SWIFT terminal.

Tue, 03/26/2013 - 10:52 | Link to Comment Rusty Trombone
Rusty Trombone's picture

MOAR !!  MOAR !!!!  ALL YOU DEPOSITS ARE BELONG TO US !!!!!

I'm already long Castor Beans and Bulgarian Umbrellas - now I have a hot line on some Manila rope

Tue, 03/26/2013 - 10:52 | Link to Comment FLUSA.com
FLUSA.com's picture

When do the lawsuits start?  Especially for those that hold client money?

Tue, 03/26/2013 - 10:52 | Link to Comment Headbanger
Headbanger's picture

Boom shaka-laka-laka Boom shaka-laka-laka..

Tue, 03/26/2013 - 10:58 | Link to Comment NoClueSneaker
NoClueSneaker's picture

Ben And The Family Stoned : " .... wanna-wanna-wanna take you hiiiiigher .... "

Tue, 03/26/2013 - 10:53 | Link to Comment Meat Hammer
Meat Hammer's picture

I just felt compelled to say good morning to my stack.  

My precious...so shiny and non-digital.

Tue, 03/26/2013 - 10:53 | Link to Comment sunnydays
sunnydays's picture

Bank runs should be happening in earnest now

Tue, 03/26/2013 - 10:53 | Link to Comment NRGIsFree
NRGIsFree's picture

This is beyond desperation. Get some precious metals and a bowl of popcorn. Sit back and watch reality meets the

sheeple.

Tue, 03/26/2013 - 11:16 | Link to Comment pods
pods's picture

I am looking forward to a nice game of Donkey Kong tonight.

pods

Tue, 03/26/2013 - 10:55 | Link to Comment NRGIsFree
NRGIsFree's picture

 

 

 

 

This is beyond desperation. Get some precious metals and a bowl of popcorn. Sit back and watch reality meets the sheeple.

 

 

Tue, 03/26/2013 - 10:54 | Link to Comment AndrewJackson
AndrewJackson's picture

All I can do right now is just sit back and laugh. Why do they want to intentially cause a run on their currency? Maybe the plan is to destroy the euro, cause a worldwide depression, and bring forth the final solution of a single currency sdr.

Tue, 03/26/2013 - 10:55 | Link to Comment Meat Hammer
Meat Hammer's picture

Maybe?  Are you new here? /sarc

Tue, 03/26/2013 - 10:57 | Link to Comment slackrabbit
slackrabbit's picture

I thought that meeting was meant to be in China in september.

I guess someone moved the schedule...

Tue, 03/26/2013 - 11:00 | Link to Comment d edwards
d edwards's picture

You could be on to something.

Tue, 03/26/2013 - 11:00 | Link to Comment d edwards
d edwards's picture

You could be on to something.

Tue, 03/26/2013 - 10:54 | Link to Comment FranSix
FranSix's picture

The cat is out of the bag. No wonder there's been so much pressure on gold prices during London trading hours for so long.

Tue, 03/26/2013 - 11:04 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

The relief valve for supressed gold prices is the delivery times, which keep going up.  And silver if just as bad if not worse.

Tue, 03/26/2013 - 10:54 | Link to Comment kookaburra
kookaburra's picture

The EUR/USD tomorrow = 1,25 ^^

Tue, 03/26/2013 - 10:55 | Link to Comment TooBearish
TooBearish's picture

EUR unched TY

Tue, 03/26/2013 - 10:55 | Link to Comment Zer0head
Zer0head's picture

for fun go to your local bank branch and if you got 20k or whatever in your account request to withdraw $10k in cash -- good luck

Tue, 03/26/2013 - 11:11 | Link to Comment SnobGobbler
SnobGobbler's picture

 

...a few forms of ID, a couple questions; BAM! I got to clean out two drawers in my local branch.  they even gave me a bag! try it!

Tue, 03/26/2013 - 10:56 | Link to Comment slackrabbit
slackrabbit's picture

We need a poll!

How many of ZH readers have emptied their bank accounts?

How many of EU citizens have emptied their bank accounts?

How many of US citizens have emptied their bank accounts?

What proportion are sheeple?

 

Tue, 03/26/2013 - 10:59 | Link to Comment JungleJim
JungleJim's picture

We could be emptying our 20 rd mags shortly ...

Tue, 03/26/2013 - 12:26 | Link to Comment Rusty Trombone
Rusty Trombone's picture

20's?   hehehehhe

Tue, 03/26/2013 - 10:56 | Link to Comment GolfHatesMe
GolfHatesMe's picture

Running out of Popcorn fast

Tue, 03/26/2013 - 10:56 | Link to Comment Al Huxley
Al Huxley's picture

As long as they don't open the banks, they can have their cake and eat it too - confiscated deposits, and 'look, no bank runs, everything's fine'.

Tue, 03/26/2013 - 10:57 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Now where is that other shoe that was just dropped.

<It was just here a moment ago.>

Tue, 03/26/2013 - 10:57 | Link to Comment mdtrader
mdtrader's picture

1.2660 here we come. :-)

Tue, 03/26/2013 - 10:57 | Link to Comment Sudden Debt
Sudden Debt's picture

WE WILL NOT TAKE AWAY YOUR MONEY AS LONG AS WE CAN'T TOUCH IT, SEE IT OR SMELL IT!

promise...

Tue, 03/26/2013 - 10:58 | Link to Comment cherry picker
cherry picker's picture

Ever notice when MSM is harping good news, ZH reads are down?  When there is a hint of insecurity in MSM, ZH reads are up.  I wonder why that is?

Tue, 03/26/2013 - 10:58 | Link to Comment Archetype
Archetype's picture

I have never seen the market AND economy this broken ever before. Watch EURUSD, watch european indices. Algos are completely crazy throwing everything back and forth. Bullshit news circulationg from one minute to another. This is beyond disgusting!

Tue, 03/26/2013 - 10:59 | Link to Comment Jim in MN
Jim in MN's picture

Tylers,

 

I think this Japan election story is more than the wiffleball version that you linked this morning (FT--which requires registration/payment to read anyhow). 

 

http://www3.nhk.or.jp/daily/english/20130326_20.html

Japan courts invalidate national election

A high court in Okayama, western Japan, has ruled that the last general election was invalid due to large disparities in the weight of votes between constituencies.

The judgment comes one day after a similar ruling by the Hiroshima High Court that sent shockwaves throughout Japan. It was the first time in the country's judicial history that a court invalidated the results of an election because of vote value disparity.

Groups of plaintiffs filed separate cases at high courts and their branches across Japan immediately after the general election in December. They demanded the results be invalidated.

The plaintiffs argue that votes in sparsely populated rural areas outweigh ballots in urban areas by a factor of up to 2.43 .

The presiding judge at the Okayama branch of the Hiroshima High Court ruled Tuesday that the election at one local constituency was invalid.

The judge cited a Supreme Court decision in 2011 that called vote-value disparity effectively unconstitutional.

He acknowledged the enactment of a bill shortly before the December election to reduce the number of single-seat constituencies. But he criticized lawmakers for failing to implement the new legislation in time.

Also on Tuesday, six high courts, including Tokyo and Matsue, ruled the election unconstitutional, but stopped short of invalidating it. Local authorities can appeal the rulings to the Supreme Court.

Mar. 26, 2013 - Updated 13:19 UTC (22:19 JST)

Tue, 03/26/2013 - 11:48 | Link to Comment slackrabbit
slackrabbit's picture

Wow.

Thanks dude!

Tue, 03/26/2013 - 10:59 | Link to Comment AcidRastaHead
AcidRastaHead's picture

so it's template on?

Tue, 03/26/2013 - 11:04 | Link to Comment Temporalist
Temporalist's picture

Good one.

Templates bitchez!

Tue, 03/26/2013 - 10:59 | Link to Comment NoClueSneaker
NoClueSneaker's picture

PARITY_CHECK

Tue, 03/26/2013 - 11:00 | Link to Comment WhiteWolf
WhiteWolf's picture

It does not matter anymore until it ends in the US, Japan.  Otherwise the dollars keep pouring into the funnel known as US Treasuries. They in turn send it to the Banks, who in turn keep buying up stocks and shorting gold to continue to excrete all over everyone that tries to stop them. Simple, a small country like Cyprus is used to show us what we will look like in the future.  Somehow, people have to take all their money out of the only scam that seperates them from 90%. When is that going to happen?

Makes you want to buu more AR's, more ammo, more Statist destroying assets. Start putting a ring around the mid West, South West and moving there. Then when the system is finally starved, watch Rome fall..

Tue, 03/26/2013 - 11:00 | Link to Comment PontifexMaximus
PontifexMaximus's picture

diesel boombomb, u made my day

Tue, 03/26/2013 - 11:04 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

Maybe he can make a sequel to Kevin James movie.  Here Comes The Boom II ....the story about a sociopath who wrestles with truth while detonating the European debt bomb

Tue, 03/26/2013 - 11:00 | Link to Comment falak pema
falak pema's picture

I told you so, the Diesel Boom doctrine; à la BCG study, is now EU doctrine. 

What lessons for the QE crowd is the big question, as it puts an ideological spike between the bail out crowd of anglo saxon/Japan world vs the bail in EU doctrine. 

Does this matter, for USD vs Euro dissemination ?

 

Tue, 03/26/2013 - 12:44 | Link to Comment Ghordius
Ghordius's picture

oh, it does matter - expect a lot of consequences spread over the next months. and yet don't forget how much more physical paper cash circulates here in europe compared to the USA - after all we have huge amounts of EUR 500 notes

speaking of which, I hear there are several planes of EUR cash flying to Cyprus

Tue, 03/26/2013 - 17:08 | Link to Comment saulysw
saulysw's picture

Strange how pallet loads of cash can easily get on planes, but German gold takes 7 years.

Tue, 03/26/2013 - 11:01 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Looks like Jon Corzine set a precedent for bail ins with his MF Global investors...Oh yeh JPM was innocent....ahem

http://www.nationalreview.com/articles/339811/corzine-s-crime-century-br...

 

Tue, 03/26/2013 - 11:01 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

As Pete Schiff said last night, the deposits for just Citi and Bank Of America are about 2 trillion.  The FDIC has about 25 B or about 1.25% of those 2 banks deposits. If that doesn't give you the warm and fuzzy's nothing will.

Tue, 03/26/2013 - 11:01 | Link to Comment mdtrader
mdtrader's picture

Nothing says bail out like a bail-in.

Tue, 03/26/2013 - 11:02 | Link to Comment Quinvarius
Quinvarius's picture

It appears the plug is purposely being pulled on the system.  I highly suggest you buy physical gold and silver while it is still in stock.  You are crazy if you are not buying at these subsidized price levels while Peter Schiff's Bankpocolypse 2.0 is happening.

Tue, 03/26/2013 - 11:02 | Link to Comment clumb
clumb's picture

But, but....but what if i hold USD on my account with an EU bank? Assuming this is more than 100k€, am i screwed as well or is this just meant to corzine EUR deposits hold with an EU bank?

Tue, 03/26/2013 - 11:03 | Link to Comment Bastiat
Bastiat's picture

No problem in the US - Big Sis has two billion rounds on order to handle the crisis.  

Tue, 03/26/2013 - 11:09 | Link to Comment ziggy59
ziggy59's picture

Funny how there's always money for stuff like that, eh?
My opinion? I wouldnt be surprised if this ammo thingy is supplying and fomenting shitstirring in places like Syria...

Tue, 03/26/2013 - 11:13 | Link to Comment Bastiat
Bastiat's picture

.40 cal hollow points not the right ammo for that

Tue, 03/26/2013 - 11:04 | Link to Comment Edward Fiatski
Edward Fiatski's picture

Cyprus was a toe in the water - to imprint the possibility of such in the mind of the public.

Spain, Italy, France -- My condolences.

Wealth confiscation is the name of the game.

Forward, Soviet!

Tue, 03/26/2013 - 11:03 | Link to Comment SheepDog-One
SheepDog-One's picture

Meanwhile DOW up a full-retard +100 again....someone stop this stupid ride, I want off.

Tue, 03/26/2013 - 11:07 | Link to Comment ziggy59
ziggy59's picture

No can do... Hotel Dow-a-fornia...you can bet against it anytime, but it will never go downnnnnn...

Tue, 03/26/2013 - 11:09 | Link to Comment SheepDog-One
Tue, 03/26/2013 - 11:12 | Link to Comment SheepDog-One
SheepDog-One's picture

I'm not 'betting' against the DOW or anything else myself....I'm just watching outside of the implosion zone....let them do what they want I don't care anymore.

Tue, 03/26/2013 - 11:03 | Link to Comment Cheeseus Sonofdog
Cheeseus Sonofdog's picture

How is this good for bears in the U.S.? It seems this could result in a flood of money coming into our stock and real estate markets. Not something I want to see. I want to hear some news about our politicians refusing to answer if they would ever confiscate our deposits(other than the 50% they stole via under-reported inflation these last five years).

Tue, 03/26/2013 - 11:11 | Link to Comment SheepDog-One
SheepDog-One's picture

If an actuall flood of money suddenly came into the U.S. the FED would panic-seize it all by dumping markets, they're so desperate.

Tue, 03/26/2013 - 11:03 | Link to Comment Racer
Racer's picture

This will mean even less money going in the banks, why would anyone put more than 100K in there getting very little interest with that sort of risk?!

Tue, 03/26/2013 - 11:09 | Link to Comment dobermangang
dobermangang's picture

Which is why in a future crisis, the EU socialist bureaucrats will have to steal the money under $100,000 in deposits.  Keep your money out of the banks.

Tue, 03/26/2013 - 13:36 | Link to Comment Urban Redneck
Urban Redneck's picture

Corporations with real employees (and customers paying electronically)-

HAVE NO CHOICE.

Tue, 03/26/2013 - 11:03 | Link to Comment lizzy36
lizzy36's picture

But what of the EU bank stress tests?

They seemed so awesome. Everyone got a participation ribbon. 

Tue, 03/26/2013 - 11:05 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

post of the week!

Tue, 03/26/2013 - 11:13 | Link to Comment ziggy59
ziggy59's picture

Are you insinuating the results may have been swayed to protect the corrupt banksters, their losing gampling addictions and Uncle Bens Converted Economy?

Tue, 03/26/2013 - 11:04 | Link to Comment holgerdanske
holgerdanske's picture

They are welcome to give me a hair cut off my gold, which I unfortunately lost in a tragic boating accident!

Or they will have to rock up with a metal detector!

Idiots.

Tue, 03/26/2013 - 11:04 | Link to Comment GrinandBearit
GrinandBearit's picture

UBER-BULLISH!

Tue, 03/26/2013 - 11:04 | Link to Comment Z'
Z&#039;'s picture

The "What a great idea!" party is beginning:

Euro Bailouts: Savers Be Warned - Your Money's Not Safe

 A Commentary by Armin Mahler

http://www.spiegel.de/international/europe/commentary-on-impact-of-euro-crisis-on-european-savers-a-890789.html

Nothing is safe from being seized by the state, no savings account, but also no house or apartment. The Germans experienced this after World War II, when they were charged an extra real estate tax in the form of compulsory mortgages. Governments have even banned the possession of gold during currency crises, forcing citizens to exchange the precious metal for the national currency.

So far, people in the debt-ridden countries of the euro zone haven't had such levies imposed on them. But why not? According to a recent study by Germany's central bank, the Bundesbank, for instance, Spaniards hold more wealth, on average, than Germans.

Greece and Cyprus have millionaires and billionaires of whom many profited from the artificial boom fueled by low interest rates after the introduction of the euro -- a boom that subsequently went bust. Why shouldn't they help finance efforts to deal with the aftermath? Is it fairer to place the burden on the euro bailout fund, and thus distribute it among the taxpayers of other countries?

---

Dear elites:  If you want the Muppets to play in your pool, you have to at least give the appearance of some security.  You see, while 'money' is bits n' bytes to you, it is value of labor for the WS2 (Working Stiffs to be Stiffed).  Therefore, it is highly probable that the WS2 will not put their money in your 'pool' if they perceive the product of their labor will be confiscated.  This has been a Public Service Announcement.

Tue, 03/26/2013 - 11:05 | Link to Comment Confundido
Confundido's picture

And gold is dowwwnnnnn!

Tue, 03/26/2013 - 11:20 | Link to Comment Antifederalist
Antifederalist's picture

"paper gold is down",  fixed it for you. 

Tue, 03/26/2013 - 11:07 | Link to Comment Dr. Engali
Dr. Engali's picture

People are fucking stupid. These criminals are telling them they are going to steal their deposits, yet they still keep their money in the system.

Tue, 03/26/2013 - 11:06 | Link to Comment UK debt marsh
UK debt marsh's picture

EURO Dijssed

REHN of Terror now begins......

Tue, 03/26/2013 - 11:06 | Link to Comment vincent
vincent's picture

Fair warning.

Unfortunately, the 900 million sheep logging onto facebook  will be caught by surprise.

At some point they'll be part of the anger phase.

That's what .gov hollow points are for.

GLTA

Tue, 03/26/2013 - 11:14 | Link to Comment Coldfire
Coldfire's picture

Collective insanity.

Tue, 03/26/2013 - 11:10 | Link to Comment Skin666
Skin666's picture

"...to spare taxpayers who have been on the hook for previous bailouts."

Earth to EU FUCKTARDS...

Depositors are already taxpayers... I.e from where you steal your money in the first place...

You could not make this shit up!

Tue, 03/26/2013 - 11:10 | Link to Comment ekm
ekm's picture

A northern european bank must be very close to collapse.

The Fed must have refused to expand QE.

 

Hence, they are trying to pull an MFG in european scale.

Entertaining.

Tue, 03/26/2013 - 11:10 | Link to Comment Disenchanted
Disenchanted's picture

 

 

If we realize that money has become like a share rising and falling in value based upon confidence in the economy, then perhaps we can make the next leap forward in this evolutionary process that will RESTORE our liberty and create a more secure world. Saying where to keep your money for the next 10 years does NOTHING for your future or your posterity if we lose our freedom. Those who only ask that question cannot see the forest for the tree. If you think you can profit from such a situation without confronting the issues or solutions, then you fail to comprehend that there may be no place left to spend your profits on hidden treasure if it is illegal to conduct any trade outside of the recognized systems. We will reach the POINT-OF-NO-RETURN where we either go down the path of full totalitarianism that Marx argued for, or we turn back from the abyss and return to FREEDOM and individual liberty. Think this can be simply address with where do we put our money – good luck. You have missed the real crisis that we face.

 

From Armstrong Economics:

Sovereign Debt Crisis Conference

March 25, 2013

Tue, 03/26/2013 - 11:11 | Link to Comment Alex Lionson
Alex Lionson's picture

Oh, those Russians, it is all because of them again!

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