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Is Cyprus Next On The Bailout Train?

Tyler Durden's picture




 

Greece gets it. Now Ireland gets it. Spain just got it. And now Cyprus is getting it. The 'it' being the desperate need by the core to hold the 'status quo' together implies much more strategic negotiating power for the periphery than anyone would want investors to know. As Greece's Syriza leader Alexis Tsipras has been saying from before the Greek election, this is a pan-European problem and renegotiating part or all of the bailout terms is far more open. As Bloomberg reports this morning, Cyprus' FinMin Vassis Chiarly said the nation should not be 'demonized' if it takes the choice of a bailout:

  • *SHIARLY: CYPRUS HASN'T RULED OUT EU BAILOUT OR THIRD PARTY LOAN

Confirming the constant ability of Europe's nation to state the obvious and understate the reality, Shiearly added, "the situation isn't as bas as presented by some" and do not wory Cypriots as 'it would be able to secure positive terms if it resorted to a bailout'.

 

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Mon, 06/11/2012 - 09:19 | 2514082 lolmao500
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Of course.

Mon, 06/11/2012 - 09:27 | 2514103 Unprepared
Unprepared's picture

Time for some rising regional power to annex the mediterranian rock.

Mon, 06/11/2012 - 09:47 | 2514169 Chris Jusset
Chris Jusset's picture

The question is not whether Cyprus will receive a bailout; rather, the question is whether Cyprus will beat Italy to the bailout punchbowl.

Mon, 06/11/2012 - 11:26 | 2514744 tonyw
tonyw's picture

I just want to confirm that I haven't ruled out an EU bailout or third party loan.

 

Mon, 06/11/2012 - 09:28 | 2514117 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Cyprus has been begging for bailout money for a couple of months now, even asking the Russians for a loan, but no one has paid much attention to them, until now.

Mon, 06/11/2012 - 09:34 | 2514135 falak pema
falak pema's picture

I thought Cyprus had Gas, lots of it. Enuff to levitate the island into opulence of Russian Oligarchy type. Why should they need a bail out when they can piss into the Euro-wind and wet Greece to its sweet nostrils. Gas can buy any ass of all denominations. Hooker land for future Oligarchy nirvana. 

Mon, 06/11/2012 - 09:46 | 2514161 Chris Jusset
Chris Jusset's picture

Why should they need a bailout?  Because bailouts are the new rage.

Mon, 06/11/2012 - 10:19 | 2514325 TrainWreck1
TrainWreck1's picture

All the 'in' countries are getting them.

Soon bailouts (Symbol: "BO") will be listed on NASDAQ, and be more popular than FB.

Cramer thinks amassing BO now is a smart move. BUY!

Mon, 06/11/2012 - 12:04 | 2514962 financial apoca...
financial apocalyptic contagion's picture

bailouts are the new hot products in the market

Could there possibly be a bailout bubble?

--- its called hyperinflation

Mon, 06/11/2012 - 09:20 | 2514085 Conman
Conman's picture

Attention all EU nations, heres a chance for your money grab. Bring out all your bad debts and let the imaginary ESM EFSF fund make you whole.

Mon, 06/11/2012 - 09:27 | 2514109 Chief KnocAHoma
Chief KnocAHoma's picture

I'ld like to make that deal as well. Can the public suck the bailout teat or do we just get the bill?

I am also open to the idea of re-distribution. All you folks getting welfare and SSI can divide up my debts, then we'll call it even.

http://annoyanidiot.blogspot.com/

 

Chief

Mon, 06/11/2012 - 09:46 | 2514150 kridkrid
kridkrid's picture

While you say that in jest, that's really where this should all go... Global debt jubilee and a reset.  The end of nation states,

1. Global Debt Jubilee

2. End Nation States

3. _______________

4. Eschew profit as THE barometer

Mon, 06/11/2012 - 09:58 | 2514205 Chief KnocAHoma
Chief KnocAHoma's picture

Won't happen kidkid.

While I LIKE the Jubilee idea, the rest is utopia wishfulness. The real world will settle this the old fashioned way, with tanks, guns and blood.

And don't forget Christ advocated a change in the financial mechanism (jubilee) of his day. They hung him on a cross to express just how much lenders liked that idea.

http://annoyanidiot.blogspot.com/

Mon, 06/11/2012 - 10:30 | 2514397 kridkrid
kridkrid's picture

odds are in your favor.

Debt jubilee predates Christ by a good bit.  Lots of people have died trying to oppose the bankers... usually in the form of wars between nations, as your post suggests.  I would like to think that we could be on the verge of actually throwing out the money lenders... but you're likely right.

It is interesting, when you think about it... the 3 major western religions all condemn usury, but only the Muslims have managed to adhear to the principle.  Of course, they muck so much other stuff up that it's difficult to give them much credit.  Also interesting to consider... how far the rank and file Christian has moved from an understanding of what Christ may have been preaching on this very subject.  Saw a bumper sticker yesterday that read, "Jesus called, he wants his religion back".... liked it.

Mon, 06/11/2012 - 09:19 | 2514086 LULZBank
LULZBank's picture

Russians will bail out Cyprus.

Mon, 06/11/2012 - 09:20 | 2514087 IMA5U
IMA5U's picture

Cyprus Hill

Insane in The Euro Shame

Mon, 06/11/2012 - 09:23 | 2514093 mayhem_korner
mayhem_korner's picture

 

 

Cyprus bailout?  Could be millions of Euros...thousands even.

Mon, 06/11/2012 - 09:27 | 2514097 M.B. Drapier
M.B. Drapier's picture

Huh? Spain hasn't got anything, at least yet. No grants, no depositor insurance, just a loan to allow it to bail out German creditors of failed Spanish banks. The one thing it got was a figleaf, a symbolic acknowledgement of the loan as a bank rescue rather than a sovereign bailout. And the Spanish sov. bond yields are about to blow that figleaf away.

Mon, 06/11/2012 - 09:28 | 2514113 LULZBank
LULZBank's picture

You want FREE MONEEZ??

Get in line Bitchezzz!!

Mon, 06/11/2012 - 09:28 | 2514114 bigwavedave
bigwavedave's picture

And to think Simon Black recommends hiding money in Cypriot banks.

Mon, 06/11/2012 - 09:39 | 2514144 LULZBank
LULZBank's picture

Yes, while hiding peacefully in Chile!

http://www.youtube.com/watch?v=PiZYXGh44rQ&feature=topics

Mon, 06/11/2012 - 09:30 | 2514116 q99x2
q99x2's picture

National Security to require all citizen bankers to turn over their worldwide assets and be arrested to await trial.

Bring it on.

Mon, 06/11/2012 - 09:29 | 2514118 mrktwtch2
mrktwtch2's picture

cyprus??  who cares thats like rhode island saying they need money..lol

Mon, 06/11/2012 - 09:48 | 2514173 WmMcK
WmMcK's picture

When the girls at Dartmouth need money ... it's already too late.
I don't know/care who's "next " on the train, only who's "last".
Italy? Japan? US? Guess it depends on which train even though they're all on the same track.

Mon, 06/11/2012 - 09:30 | 2514119 firstdivision
firstdivision's picture

The EZ is dead.  All we are seeing is the tragic comedy of the leaders trying to keep the plates spinning.  The problem is the plates are breaking while still spinning. 

Oh, and when the vigilantes finally go after France for their massive holes, that will be the grand finale.

Mon, 06/11/2012 - 09:52 | 2514182 Mitzibitzi
Mitzibitzi's picture

I quietly suspect that what a great amount of this shilly-shallying is about. No serious efforts are being made to save the PIIGS, who shouldn't have been included in the project in the first place and probably won't be greatly missed when they inevitably have to leave, because the northern Euro states need to keep their powder dry to save France, come the day.

The only way that Germany and France won't end up glaring across the border through a gunsight, in the long run (again!), is if they're locked into a MUCH tighter fiscal and political union by that time. And I suspect both countries know that's the only pressing reason for continuing to play the EU/Euro game, Brussels' dreams of the 35-member Socialist Union of Greater Europe notwithstanding.

Mon, 06/11/2012 - 09:59 | 2514208 magpie
magpie's picture

chirp

Mon, 06/11/2012 - 09:59 | 2514209 magpie
magpie's picture

Waiting for the vigilantes frontal assault on France.

Mon, 06/11/2012 - 10:47 | 2514532 firstdivision
firstdivision's picture

When it happens, it'll put Peter North's full-frontal assaults to shame.

Mon, 06/11/2012 - 09:59 | 2514211 Jethro
Jethro's picture

The visual I get is Ben Bernanke and the ECB as DJ's playing "C'mon N' Ride It" while the elected leaders of the EU and the USA dance in a conga line.

Mon, 06/11/2012 - 09:42 | 2514121 Disenchanted
Disenchanted's picture

 

 

Greetings from Banksterstan...

http://0.tqn.com/d/space/1/0/z/W/earth8.jpg

All You Chattel Are Belong To Us...

 

bitchez

Mon, 06/11/2012 - 09:31 | 2514123 Cognitive Dissonance
Cognitive Dissonance's picture

"Greece gets it. Now Ireland gets it. Spain just got it. And now Cyprus is getting it."

"IT" is simple. If you owe a bank $1 Million you have a problem. If you owe a bank $1,000 Million the bank has a problem.

Mon, 06/11/2012 - 09:40 | 2514145 falak pema
falak pema's picture

Funny how the rage spreads to print and reprint running in front of the rising funny money tide. Kanute sits on his chair...

Mon, 06/11/2012 - 09:40 | 2514146 sudzee
sudzee's picture

Wars are so 20th century. The unelected only need a few keystrokes and its over.

Mon, 06/11/2012 - 09:41 | 2514156 Wolferl
Wolferl's picture

Our final solution for Cyprus. We give it to the Turks. We don´t need no Asian countries in the EU anyway.

Mon, 06/11/2012 - 09:44 | 2514159 the 300000000th...
the 300000000th percent's picture

Shouldnt there be more downgrades coming from all this bailing????

Mon, 06/11/2012 - 09:47 | 2514168 JohnKozac
JohnKozac's picture

"Gravy Train" is what you really meant to say, right?

Where is all this Bailout money coming from?Just about every country has massive deficits and falling revenue. So who is putting up these Billions?

Mon, 06/11/2012 - 09:56 | 2514196 Mitzibitzi
Mitzibitzi's picture

No-one. They're just making the shit up out of thin air, just like the Fed, the BoJ and most likely everybody else on Earth at this point. And the paper trail regarding who exactly owes what to whom is now so long and confusing that it's working even, to a degree. For the moment.

Mon, 06/11/2012 - 09:51 | 2514178 The Credible Hulk
The Credible Hulk's picture

Meanwhile, in Russia, people are taking things to their logical conclusion - a ponzi scheme that openly announces itself as such:

http://mobile.bloomberg.com/news/2012-06-06/is-global-finance-a-ponzi-sc...

'Now he's back with an even more audacious endeavor: the honest scam. Last year, he announced the new project, MMM-2011, by stating boldly that it would be another Ponzi scheme. “Even if you strictly follow all instructions, you can still lose," he wrote on a website describing the project. "Your 'winnings' may be withheld without any explanation or reason whatsoever.”'

And why not. As with the other ponzi schemes, most people are now in it because they think they will manage to pass the hot potato to the next sucker and parachute out before it collapses. Might as well be honest about it.

Mon, 06/11/2012 - 09:55 | 2514190 magpie
magpie's picture

Wasn't that guy's spin that it was a "patriotic ponzi" ?

Mon, 06/11/2012 - 09:57 | 2514198 Jim In Panama
Jim In Panama's picture

I like Cyprus in this match up .... but I wouldn't write off Italy completely. I think they'll be neck and neck crossing the bailout line

Mon, 06/11/2012 - 09:58 | 2514200 BluePill
BluePill's picture

I just want to tell you all that Indian immigrants are responsible for this train wreck we are seeing today

Mon, 06/11/2012 - 10:10 | 2514273 Jethro
Jethro's picture

Dude, add something useful to the conversation please.  I lived in New Delhi, India for about a year and half in the early 90's.  It tested both my patience and my immune system.  I came out OK.  Granted, the place will drive you crazy if you expect any amount of conventional logic in your daily transactions, but if you just sort of accept things as they are, you'll be able to sit back and enjoy the ride....sort of like Alice in Wonderland.  There are some truly beautiful things anywhere you go.  Sometimes, you just have to change your perception.

Mon, 06/11/2012 - 10:01 | 2514216 fredquimby
fredquimby's picture

Cyprus hasn't been the same since Killary Clinton stuck her nose into their business!!!

Background

The Evangelos Florakis Navy Base is a Cyprus Navy base, situated near Zygi, between Limassol and Larnaca.[4]

In open storage on the base were 98 containers of explosives[5] that had been seized by the United States Navy in 2009 after it intercepted a Cypriot-flagged, Russian owned vessel, the MV Monchegorsk travelling from Iran to Syria in the Red Sea.[6] [7] According to leaked US cables through WikiLeaks, released in 2011, the US through Hillary Clinton exerted pressure on Cyprus to confiscate the shipment.[8] The ship was escorted to a Cypriot port and the Cyprus Navy was given responsibility for the explosives, which it moved to the Evangelos Florakis a month later.[9] At the time of the incident in 2011, the explosives had apparently been left in the open for over two years. The Cypriot government had declined offers from Germany, the United Kingdom and the United States to remove or dispose of the material, having feared an adverse reaction from Syria.[5] The government had instead requested that the UN effect the removal, but claimed that its request had been rejected.[10]

Explosion

The explosion occurred at 05:50 EEST (02:50 UTC) following a fire caused by explosions of several containers starting one hour and 20 minutes earlier. Every house in the village of Zygi was damaged by the blast, which was felt in the village of Mari over 3 miles (5 kilometres) from Zygi. The Vasilikos Power Station, the largest power facility on Cyprus, which provided approximately half the island's electricity, was severely damaged, causing widespread power cuts which affected much of Nicosia, the Cypriot capital, over 40 miles (65 km) from the Evangelos Florakis base.[11]

The blast killed 12 people on the spot and injured a further 62, of whom two were injured seriously with one dying later increasing the number of dead to 13. Among those killed were Captain Andreas Ioannides, the Commander of the Navy (the head of the Cyprus Navy) and Commander Lambros Lambrou, 45, the commander of the Evangelos Florakis base.[12] Also killed were four other Cyprus Navy personnel and six civilian firefighters who had been tackling the small blaze that led to the explosion.[5]

Mon, 06/11/2012 - 10:02 | 2514225 Winston Smith 2009
Winston Smith 2009's picture

Is Cyprus next?  If they are, no one will notice much. Their GDP is $23 billion.

Mon, 06/11/2012 - 10:08 | 2514261 JackT
JackT's picture

That's good...that can be banged out with an old dot matrix printer no problem.  

Mon, 06/11/2012 - 10:11 | 2514281 Darth Hayek
Darth Hayek's picture

Explain to me again why it isn't Germany looking to bail?  'cause this deal is just getting worse and worse for them...oh right, that was the plan.  Silly me, silly me...

Mon, 06/11/2012 - 10:47 | 2514540 dingoj
dingoj's picture

Does this mean we'll get another one of these nice rallies?

Mon, 06/11/2012 - 11:05 | 2514624 Grand Supercycle
Grand Supercycle's picture

Rally Warning from last week:

'Daily chart now gives bullish warning and significant
SPX rally & USDX retracement should commence in a week or so'

http://www.zerohedge.com/news/2012-12-24/market-analysis

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