The instinct of self-preservation is overwhelming even short term manipulation, don't just read that sentence, but feel it because the market is SPEAKING TO YOU.
It didn't take long for the levers to be pulled this morning, but after a round of he said/she said , rumor, truth, denial, counter-rumor and lies in the EU, the market is just a mess and is acting like it doesn't believe anyone. Capital controls have reduced Cyprus ATM's from $100 EU a day to something like $35, more liquidity is needed at the banks and guess why? I covered this last night and old Wabble, or Schaueble (German Finance Minister) "didn't have exact figures" for the flight of Russian capital OUT of Cypriot banks during all the chaos of the last week from the time they announced the plan last weekend to the chaos and parliament voting it down without a single vote in favor, in the mean time as per typical EU fashion the Eurocrats were busy making sure the locals couldn't take out more than $100 Eur. a day while the Russians were taking out BILLIONS- the typical EU lack of due diligence, they left branches of these banks open in several other countries and Russians used the loop-hole to remove a large chunk (in the multiple billions) of capital leaving as I said last night, the burden to those few who didn't get out or the locals. Any one with an uninsured deposit of $100k or more will almost surely see a total wipeout of all of their funds. This wasn't an investment that they bet on that went wrong, these were their savings at a bank just like you and I that are being (likely totally) confiscated and the small businesses in Cyprus that are among those with deposits of $100k or more are not only going to suffer the only group of people who brought and spent money in Cyprus, the Russians, abandoning Cyprus as they have no more reason to stay in 5 star hotels or buy ultra-;luxury good or patronize local business, but on top of that, they are in the class of those with uninsured deposits and because the Russians (and rightfully so) found a way to get their money out while the Eurocrats played 3-Stooges, these are the employers who will most likely be totally wiped out.
The market's upset stomach today comes from a series of rumor, counter-rumor, statement and retraction in which as we all knew last weekend, Cyprus is the template and the Eurocrats have admitted it, so say goodbye to the EU financial system and this is the meekest among nations who will not inherit, but destroy the EU.
Once again the EU's grand "schemes" as they are always trying to rip someone off, have backfired on them and they truly shot themselves in the foot with a bazooka this time when they went after Russian money and in the end the Russians not only outsmarted them, but made the situation back-fire in the Eurcrats faces in a way they never imagined, PAR FOR THE COURSE!
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