Europe Bailout #5 Is In The Books

After Greece, Ireland, Portugal, and Spain, we just got domino #5. They are falling real fast now:

• CYPRUS LIKELY TO HAVE TO SUPPORT ONE OF ITS BANKS, SHIARLY SAYS
• CYPRUS GOVERNMENT IN CLOSE CONTACT WITH EU ON BANKS: SHIARLY
• CYPRUS'S BANKING SYSTEM AT CRITICAL TURN, SHIARLY SAYS
• CYPRUS PREFERS PRIVATE SOLUTION TO EU BAILOUT FOR BANKS:SHIARLY

And now just the fulcrum domino is left. The boot-shaped one.

Cyprus bond yields are now back at record highs...

Comments

[mayhem_korner]

Bailing out Cyprus is like striking out a pitcher.

[Stoploss]

Damn, i love it!!!

[Fish Gone Bad]

Is Cyprus even a real country?

[The Swedish Chef]

Not really. It´s Turks and Greeks not being able to decide or war it out over sovereignity so they called it even and shared.

[SilverTree]

"Shiarly you can't be serious...yes, and don't call me Shiarly."

[sablya]

I don't understand why the $VIX is so low.  Can anyone explain the level of complacency?

[Scalaris]

Cyprus 

- Passed around by so many invaders, than chlamydia in a Thai whorehouse, since 10,000 BC. 

[Element]

Do they have a power station after the last one went Ka-Blewie?

No, this is not Fukushima:

http://www.thesun.co.uk/sol/homepage/news/3689523/Power-station-destroye...

http://www.voanews.com/content/cyprus-blast-causes-major-power-outage-12...

[johngaltfla]

Yes but with their stock market down 97.5% from it's peak, it's sort of a moot point until they start pumping oil and natural gas out of their vast reserves they have discovered.

The charts do not lie...

7 Charts Indicate Why Europe is Doomed

[jover]

Reboot the system

[Vaiman]

Markets don't seem too worried today!

[RiverRoad]

The worse it gets, the better it will be; QE to infinity.

[icanhasbailout]

Everybody in! Last one to ask for money gets nothing!

[CommunityStandard]

Hurry!  We have to destroy our banks otherwise we don't get any money!!!

[williambanzai7]

[Wakanda]

Italia!  First in my heart and last PIIG to be slaughtered.

Hey paisano!  Basta wit' da extend and pretend.

[HoofHearted]

Awesome...as usual. You are a treasure and bring joy to many people. A thing of beauty...and most of your stuff fits that description of beautiful in my mind.

[bubbleburster]

Brilliant !!!!!!!!!

[Conman]

Oh makes sense why everythign is going green.

[EscapeKey]

Oh no, that's due to "investor money on the sidelines", "bargain stocks", and "low forward P/E ratios".

Haven't you learned anything from CNBS?

[CrimsonAvenger]

Don't forget about the fundamentals. I think people really overlook those sometimes.

[Joshua_D]

CTRL-D.

[CreativeDestructor]

Wake me up when they start begging for bail-ins

[hedgeless_horseman]

Italy will be fine.  They are sitting on this little off-balance-sheet asset...

If the certificates were real, for Italy it would be like hitting the jackpot. The fine alone would amount to € (euro) 38 billion, five times the estimated cost of rebuilding quake-devastated Abruzzi region. It would help Italy’s eliminate its public deficit.

And this little jewel...

During the Second World War several countries at war printed and put in circulation perfectly counterfeit enemy money. It is also historically established that some central banks, like the Bank of Italy 65 years ago, issued the same securities twice (identical registered number and code). This way they could print more money with legal tender than they officially declared. The main difference though is that 65 years ago the world was involved in a bloody war, which is not the case today.

http://www.asianews.it/index.php?l=en&art=15456&size=A

I am not so sure the Italians know that they are not at war, today.

[Fish Gone Bad]

There's a war going on all right.  Eveyone sees it, and yet does nothing about it.  It is kinda like Watership Down, except it is happening to people, not rabbits.

[hedgeless_horseman]

News from the Italian Front...

 

An expert in counterfeiting shows details of counterfeit euro notes at the Italian Carabinieri Currency Anti-Counterfeiting Unit in Rome last month. 

Image Credit: New York Times News Service

Campania, Italy While Eur-ope's financial overlords debate the wisdom of spurring growth by letting the European Central Bank print more money, some enterprising sorts in this semi-urban sprawl northwest of Naples are taking matters into their own hands and printing reams of counterfeit euros.

"In Italy, there's a great, ancient and august tradition: Here, they make fake money, done well."

http://gulfnews.com/business/general/real-or-fake-the-growing-problem-of-counterfeit-euros-1.1021691

Good ol' Italian artistry!

[lolmao500]

I am not so sure the Italians know that they are not at war, today.

Well the way they fought back then, they probably didn't know back then either...

My history teacher always said the most intelligent in Europe during WW2 were the Italians... the only ones who were bright enough to do everything but fight in this stupid war.

[Wakanda]

dup

[SeverinSlade]

How long until FrAA+nce needs le bailout?

[valley chick]

Are you in a hurry?  :)   Patience SS...let me enjoy watching Italy...

[lolmao500]

I think the UK will need a bailout before France... and that would be a problem...

[Dorky]

Are you in debt?

Good.

[EscapeKey]

Not in debt?

What are you, a terrorist?

[slewie the pi-rat]

unrich

[HoofHearted]

Then the ECB should have no problem loaning me a couple hundred million. I'm going to go buy PMS and arable farmland with it, so I'm doing a much better job of investing the ECB's money than any of the other nations. I might even be willing to hire a Eurolackey or two to help me clear the land and get the house and barns up to my standards...(here's the key- squirrel away enough of their cash to make the first year or two worth of payments. By then the euro is kaput...and we don't have too many worries on the payback.)

[ihedgemyhedges]

"I'm going to go buy PMS...."

I'll sell you my wife's.........Hell, I'll PAY YOU TO TAKE IT OFF MY HANDS!!!!!!!!!

[muppet investor]

The bailout market is in a bubble.
Be carefull

[mayhem_korner]

muppet to muppet, r u saying we should short bailouts?

[urbanelf]

I've been saying it over and over: if Cyprus falls, God help us.

[Matt]

Sarc? Cyrpus is tiny, they should have gotten themselves a bailout at the front of the line, while there was still money.

[Element]

one more grain of sand on a sand pile exceeding the angle of repose ... who knows which extra grain triggers the avalanche

[Al Huxley]

There's always more money for bailouts.  Spain will lend it to them, using the money they borrowed from Italy.

[Auburn]

Very bullish!  Another boost for equities (I don't get it anymore anyways!!!)

[John Law Lives]

It doesn't have to make sense to us.  The Machine that controls the vacuum tubes exists to enrich itself.

Anyhow, there are rumors floating that the Fed will become even more accommodative.  The gerbil wants its crack pellet... and it wants it now.

[semperfi]

Simple really:

1.  X runs out of money
2.  markets sniff Y opening the ink jar
3.  Y prints up money for X
4.  rinse & repeat

[SmoothCoolSmoke]

SPY pump deja vu.  Just like yesterday ....to the minute.  Unreal.

[Village Smithy]

If you are trying to short this market keep in mind that you are working against an endless stream of well placed lies as well as unlimited ZIRP funding available to the PDs to squeeze you with. They will keep playing this game until it doesn't work anymore.

[Rip van Wrinkle]

And when it doesn't work any more.......?

[j0nx]

Cypwho?

[ptoemmes]

So, the Ruskies got boxed out if they were in fact ever in the game?  

http://www.zerohedge.com/contributed/2012-06-12/interesting-bailout-offing

[LULZBank]

"FREE MONEEZ!!! Come everyone and get some!!"

"NO! Not you peasant! Now give me what you have in your pocket and Fuck OFF!"

[Morrotzo]

Cyprus, huh? Now CYPRUS needs a bailout? Shit, ask Americans to point to Cypress. If they manage to point to the Florida Everglades, be impressed and award an A For Effort.

[flacon]

The answer I usually get is: "Cypress Hill? What?"

[SDRII]

Israel major find offshore block

Russia to loan Cyprus 2B

Israel says will deploy 20K commandoes to Cyprus

Cyprus seeks $5B more from Russia

Meanwhile,

Iraq calling out US/GCC for arming Syrian rebels: A senior Iraqi politician blamed the US and certain Arab regimes for providing logistical and financial support for the terrorist groups, including the al-Qaeda, which embark on deadly attacks against civilians in Syria and Iraq. "A majority of the Al-Qaeda's terrorist attacks on Iraq's and Syria's soils reveal the logistic and financial support of the US side and the Persian Gulf (Arab) states for the al-Qaeda," Secretary-General of Naseri stream in Iraq Hussein al-Robai'ee told FNA on Wednesday. Meanwhile, A string of coordinated suicide bomber attacks in Iraq killed at least 56 people during a Shi’ite religious festival on Wednesday, media reported.

& Russia too: Russian Foreign Minister Sergei Lavrov on Wednesday accused the United States of supplying weapons to Syria’s rebels, worsening the conflict engulfing Moscow’s allied regime in Damascus. “They (the United States) are providing arms and weapons to the Syrian opposition that can be used in fighting against the Damascus government,” he said, speaking through an interpreter in response to a question about arms sales to Syria at a news conference in Tehran shown on Iranian state television.

[SDRII]

almost forgot...

Cyprus, which takes over the presidency of the European Union on July 1

While

Israel-Cyprus Deal on Gas as Lebanon Won’t Negotiate: Lebanon and Israel have no defined maritime border, while Turkey doesn’t recognize the Greek Cypriot-led government of the Republic of Cyprus and relations with Israel have soured since Turkish activists died on a Gaza-bound flotilla two years ago. Tensions boiled over when Turkey sent an exploration vessel accompanied by warships and jets to stop Cyprus drilling for oil and gas last year. Cyprus is working with Israel, 300 miles (480 kilometers) south across the Mediterranean Sea, on the potential construction of a pipeline to connect their gas fields. The link would allow the countries to meet domestic demand before liquefying the fuel for export, Israeli Prime Minister Benjamin Netanyahu said Feb. 16.

[slewie the pi-rat]

slewienimics 2E4UQT pop quiz!  Q1:  who tf sed:

Here at our __ headquarters, we remain sans soucis. Which is another way of saying, we’re enjoying the show. What will the fixers do next, we wonder? Every fix makes things worse. But they keep at it.

For the benefit of Dear Readers with skin in the game, we leave our “Crash Alert” flag up for a few more days. This market could go to hell in a hurry. If you’ve got skin in the game, get it out.

huh?  that is from yesterday as is Q2:  who tf sed:

In reply, he thrusts a copy of the Tampa Bay Times, my local laughably provincial leftist rag, which (as you would expect) carried an essay by Paul Krugman, a man whom I consider, with a particularly acid venom, one of the worst neo-Keynesian econometric halfwits in the known world, the shame of Princeton University, a shame he shares with Ben Bernanke, chairman of the loathsome, demonic Federal Reserve. 

Well, my eyes were kind of going in-and-out of focus by this time, but the adrenaline of my outrage soon focused my attention wonderfully when he demonstrated his insanity by pontificating that, even though it has been discredited for so long that it is beyond incredible that he would dare say it, "Our debt is mostly money we owe to each other."

answer to Q1 here answer to Q2 here bong-ho, BiCheZ!

[Bastiat009]

Yeah, another bailout ... let's throw more money we don't have into a bottomless pit ... that's euro positive. Whoever is trading the euro today needs to get their heads examined.

[Grand Supercycle]

Rally Warning Continues...

SPX bullish daily chart & USDX bearish daily chart strengthen.

Significant equity / EURUSD upside & USDX retracement ahead.

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

[Youri Carma]

Cyprus in line for $6.2 billion loan from Russia