For those who found themselves busy fertilizing their lawns and Spring cleaning this weekend, you missed a market-moving decision as Cyprus announced (quite conveniently after Fridays close) an unprecedented levy on all bank deposits of 6.75% for accounts below $100,000 euros, and 9.9% for $100,00 euros and above. OUCH
Adding insult to injury, if you lived in Cyprus and needed cash from an ATM machine, you were out of luck as Cypriots awoke to find bank transfers already frozen as the government prepares to seize the assets when their banks re-open on the 19th although the glimmer of hope exists the final vote tomorrow could fail (there must be a joke there somewhere about PIIGS and flying).
All the talk from EU politicians. All the promises that the Euro would be fine. All of the money printing. All of the haircuts already taken. Blah blah blah blah.......and here we go again.
My hats off to whomever bought the enormous volume in VXX end of Feburary. (click on chart to enlarge) That hedge should payoff nicely on this news. Don't you find it quite coincidental that these Greek news came out AFTER the U.S. released their bank stress tests results? (hehehe)
One would also assume that the reigning Corporate elite and their buddy banksters overseas are having an ever more difficult time squeezing money out of the little guy going forward because simply put, there ain't none left.
Given what the "trickle down" effect did to U.S. assets over the last 30 years, I wouldn't be at all surprised to see the U.S. encounter further resistance from their citizens as well **if** fear isn't contained, and quickly. Needless to say every dog-n-pony show will be out this week to reassure capital markets. After all, OUR U.S. banks passed their stress tests....don't panic..........all is well. (*cough cough* what about their exposure to overseas banks????) Well we've all been waiting for a correction - maybe this'll be the catalyst.
Now I would think the topics of taxing the wealthy, income distribution and wealth inequality have already been to death but thanks to Cyprus, here we go again. *sigh* Oh the pain........