The Cyprus Deal is Already Under Threat (Of Course)


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    C’mon, jal! Those guys can’t plan a piss-up in a brewery, they can only dictate when things get dicey, and the diktat recipe is well known and tried.
    And frankly, there’s nothing else they can do, because what happens, really, is that there’s no more capital. It has been spent & burned & evaporated. Everyone talking about capital controls misses the point that there’s nothing (or not much) to control anymore.
    That’s all.


    I’ll grant that this Cyprus mess might have been sparked by some sort of misguided strategy, ie; my posit that the incompetents that triggered it wanted to attempt to churn velocity.

    But at this point I’d suggest it has turned into an out of control wildfire. I believe the process of throwing the lessor entities to the wolves has begun in spades.

    Disintegration of the Euro is gaining speed now, add the complication of geopolitical posturing between Russia, China and the US. That spells Proxy War. What more convenient place to conduct that than Europe? Already have all the maps from the last two, and the US economy could use the boost, no? And Putin needs a popularity makeover at home.

    A European Spring might be next up.

    After observing the events of the last week, I’d get liquid and physical. If it isn’t real and in your hands, you don’t own it. Someone at ZH mentioned money in a bank account isn’t yours, it’s really an investment in the bank, like shares.

    When one thinks about that, it makes sense. They re-lend it and share some of the interest with you, in return for your taking the risk with them. Now, is 0.10% an adequate risk premium in light of the present state of affairs?

    All this FDIC stuff is propaganda, left over from the last confidence restoration campaign. It’s already been reduced to $250 k per depositor, from $250k per account, in any given institution. What do that say to ya?

    And, the best made plans…and planners…


    Keep a close eye on what happens here next because if the only remaining “good” Cypriot bank is shuttered, then the entire European bailout package, cobbled in the last hours of Sunday, goes poof.

    Is Cyprus’ Last Remaining Big Bank Set For An Unexpected Liquidation?


    Makes sense. The bank runs have happened (stealthily) long time ago, people don’t have any money anymore (neither do the banks), so the next logical step is clearly bank closures. The extend & pretend & issue more debt has only masked the normal steps towards full blown Unprecedented Mother of All Depressions, but has not stopped its march behind the curtain.
    Liquidations and bank closures next.

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