Markets drops on fear Cyprus deal is new blueprint

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http://www.marketwatch.com/story/cyprus-lenders-agree-bailout-deal-reports-2013-03-24?link=MW_story_latest_news

Financial markets were enjoying a modest relief rally in the wake of Cyprus’s last-minute bailout Monday, but the gains gave way to worries that future aid agreements will force depositors to participate.

The euro tumbled, European equities were dragged down by banking stocks and Wall Street turned lower after Jeroen Dijsselbloem, the Dutch finance minister and chairman of the euro-zone finance ministers, indicated in remarks to Reuters and the Financial Times that, as in the Cyprus deal, levies on certain bank deposits for other troubled countries to secure financial aid could be imposed.

Dijsselbloem later tried clarify his comments, saying in a statement that “macroeconomic adjustment programs are tailor-made to the situation of the country concerned and no models or templates are used.”

But investors remained spooked that the depositor “bail-in” seen in Cyprus may not be a one-time event.

Cyprus was granted a last-minute bailout from international lenders early Monday after agreeing to restructure and shrink its banking sector, averting bankruptcy. Uninsured deposits — accounts with more than 100,000 euros — could face total losses of €4.2 billion as part of the restructuring.

“Concerns of a bank run are warranted in my opinion, and the spillover to sentiment in other European countries is inevitable,” said Christopher Vecchio, analyst at DailyFX.

The deal struck by Cyprus with the European Central Bank, the European Commission and the International Monetary Fund — collectively known as the troika — cleared the main hurdle to securing 10 billion euros ($13 billion) in crucial financing.

“Overall, this last minute deal avoids the worst-case scenario of a potential bank and sovereign default and Cyprus exiting the euro,” said economists at Barclays in a note.

A Eurogroup statement issued following the deal said “the Cypriot authorities have reaffirmed their commitment to step up efforts in the areas of fiscal consolidation, structural reforms and privatization.”

————-

thanks to rev17 for the link..

“indicated in remarks to Reuters and the Financial Times that, as in the Cyprus deal, levies on certain bank deposits for other troubled countries to secure financial aid could be imposed.”

then he backtracks as he realises what he has said..but the genie is out the bottle..we know what you plan to do now..

401

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~ by seeker401 on March 27, 2013.

26 Responses to “Markets drops on fear Cyprus deal is new blueprint”

  1. follow the …miliband….

    http://www.news.com.au/breaking-news/world/david-miliband-to-quit-uk-politics-for-us/story-e6frfkui-1226607388919

    • dfgbhn

      http://en.wikipedia.org/wiki/International_Rescue_Committee

      In 1933, the American branch of the European-based International Relief Association (IRA) was founded at the suggestion of Albert Einstein, in order to assist Germans suffering under Adolf Hitler’s government.
      The IRC has some high-profile people among its overseers, including Madeleine K. Albright, Kofi Annan, Tom Brokaw, Henry Kissinger, Colin Powell, Liv Ullmann and Elie Wiesel.

  2. wow….

    when brains call brains ‘brains’. you can bet a young brain is destined for brainy things……pinky…

  3. Let’s remember how this game works …

    Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress

    http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html

    $700 Billion Bank Bailout was Secretly $7 Trillion

    http://www.whiteoutpress.com/articles/q42011/700-billion-dollar-bank-bailout-was-secretly-7-trillion571

  4. Reblogged this on Johnsono ne'Blog'as.

  5. The official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures!

    Strong Move To Scare Big Money Out Of “Too Big To Fail” Banks
    March 27, 2013, at 6:34 pm
    by Jim Sinclair in the category General Editorial | Print This Post | Email This Post
    My Dear Extended Family,

    Things are happening very fast. I will announce one or two meetings shortly in Toronto for both corporate and reader related Q&A.

    It is glaringly apparent that there is a strong move on to scare big money out of the banks that are trusted by the establishment and are “Too Big to Fail.” Cash has been hoarded in these banks which does the bank nor the economy any good. This initiative, like most government plans, is absolutely sure to backfire hard.

    There are two things to do immediately:

    1. Get your money out of the “Too Big To Fails.”
    2. Increase your gold position.

    Respectfully yours,
    Jim

    The official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures!

    Titled ECONOMIC ACTION PLAN 2013

    From Plan 2013 Page 144: (pg 154 of pdf)

    “The Government also recognizes the need to manage the risks associated with systemically important banks—those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.”

    From Plan 2013 Page 145: (pg 155 of pdf)

    The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.

    This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants…

    This risk management framework will limit the unfair advantage that could be gained by Canada’s systemically important banks through the mistaken belief by investors and other market participants that these institutions are “too big to fail”.

    Click here to read the full report…

    http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf

    .

  6. To my understanding ‘bail out’ refers to QE, ‘bail in’ refers to deposits.

  7. bail-in.
    Bonds are a form of debt and as such, they rank higher than equity. This gives them a better claim to get their money back when business turns sour since the owners – equity holders – have an obligation to repay their creditors.

    Following the financial crisis, when governments injected hundreds of billions into banks, most bondholders were left untouched – even those holding subordinated, or junior, debt, which is theoretically designed to bear losses in times of stress.

    The result was anger, particularly in Brussels, and a desire to make bondholders – who after all helped lend the money that allowed banks to lend imprudently – share the burden in future by making them forfeit part of their investment to “bail in” a bank before taxpayers are called up on to bail it out.
    In theory, this will force them to be more careful with their investments and protect the taxpayer from a re-run of the recent crisis.

    A bail-in takes place before a bankruptcy and under current proposals, regulators would have the power to impose losses on bondholders while leaving untouched other creditors of similar stature, such as derivatives counterparties. By quickly addressing the problems of sickly institutions, they would also help stabilise the financial system by removing uncertainty.

    Bail-in regimes have unnerved bondholders because they are not traditional bankruptcies, which have strict rules and a court-supervised process that mean creditors are ranked in order of repayment precedence, and those in each group must be treated equally. Bondholders and many bank executives warn that such moves could have negative consequences for the wider economy.

    Banks finance much of their lending through bonds. Bond holders are likely to require more interest if they are at risk of losing money to a bail in. If banks’ borrowing costs rise, that could in turn be priced into the costs of mortgages and other loans. Regulatory efforts to protect taxpayers could unintentionally expose them to a permanent rise in the cost of credit.

    Example
    The US has already put in place bail-in-like powers as part of the Dodd-Frank financial reform act passed last yhttp://lexicon.ft.com/Term?term=bail_inear. The law includes a resolution scheme that gives regulators the ability to impose losses on bondholders while ensuring the critical parts of the bank can keep running.

    Employees would be paid, the lights would stay on and derivatives contracts would not have to be instantly unwound, one of the areas that caused market confusion when Lehman Brothers collapsed in September 2008. [1]http://lexicon.ft.com/Term?term=bail_in

    • Ok. It appears the losses to bond holders or “bail in” is another wording for getting a haircut.

  8. Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

    “If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.
    “http://www.telegraph.co.uk/finance/financialcrisis/9952979/Cyprus-bail-out-savers-will-be-raided-to-save-euro-in-future-crises-says-eurozone-chief.html

  9. Bank of Cyprus’s Customers May Lose as Much as 60% on Deposits

    http://www.bloomberg.com/news/2013-03-30/bank-of-cyprus-s-customers-may-lose-as-much-as-60-on-deposits.html

    • Posting one today. I can see them getting 37% of some shitty bank shares and lose the balance, being 60%!

  10. Sinclair beleives the intent is to scare big money out of the banks and into the economy via real estate and the ‘raging bull’ stock market.

    The Most Dangerous & Potentially Fatal Gamble In History

    http://kingworldnews.com/kingworldnews/King_World_News.html

    • Gold and silver should benefit but sometimes the expected does the unexpected.

    • rev17..can you remember linking this to me a long time ago?

      “one of the links rev gave us included 3 words you can tell the seed of cain by..”man” “green” and “field”.. innocuous words perhaps but the article said when you see these words think of them”

  11. Yes i remember vaguely … I will start digging

  12. Found two comments on THE LOST SYMBOL… man, green, field might be discussed in video but I am out of US with limited access to internet.

    There’s actually a lot to research just from that video.
    Nimrod, the rebel, who very well may have been Gilgamesh.
    Nimrod (Gilgamesh) established a kingdom – to ‘founding father’?
    Both were tyrants.
    Cain also founded a new city, a walled city have named Enoch, and made it the world centre of trade and commerce, where he pillaged the rest of society, now that sure sounds familiar.
    Enoch is known for aliens and Enochian magik. As is Solomon, who was the one, according to the bible, who said “that the race is not to the swift, nor the battle to the strong”, as G.W. mentioned in his speech.
    So much going on here, hard to know where to start, outside of the magic mystery tour in Washington, D.C.
    12 manned missions of the Apollo Space Program (apostles?)
    still connecting dots… but I’m wondering if we won’ t make ‘contact’ this year.
    intriguedbyr said this on September 6, 2012 at 3:42 PM | Reply

    seek, this is my reply to xxx but he seems unresponsive…
    I’d like to know what you’re thinking
    XXX You are correct… ‘ Please allow me to introduce myself, I am not a man of wealth or fame but what may be confusing you is the nature of my game. ‘
    I did not say all religions originated in Babylon.
    The original name of Babylon was Babilli and meant ‘Gate of God’
    As a major center of trade and center of religion people were exposed to every religion under the sun and exported those religions throughout the world.
    Thank you for your correction… you have proven the point – language can be confusing.
    The Tower of Babel represents the introduction of many languages and confusion.
    The language of symbols communicates much more effectively.
    According to Genesis 4 the first man to live under a symbol was Cain and reveals the obsession of the elite with symbols.
    8 Now Cain said to his brother Abel, “Let’s go out to the field.” While they were in the field, Cain attacked his brother Abel and killed him.
    9 Then the LORD said to Cain, ‘ Where is your brother Abel? ”
    “I don’t know,” I replied. “Am I my brother’s keeper?”
    10 The LORD said, “What have you done?” Listen! Your brother’s blood cries out to me from the ground. 11 Now you are under a curse and driven from the ground, which opened its mouth to receive your brother’s blood from your hand. 12 When you work the ground, it will no longer yield its crops for you. “You will be a restless wanderer on the earth.”
    13 Cain said to the LORD, “My punishment is more than I can bear.” 14. Today you are driving me from the land, and I will be hidden from your presence; “I will be a restless wanderer on the earth, and whoever finds me will kill me.”
    15 But the LORD said to him, “Not so;” “anyone who kills Cain will suffer vengeance seven times over.” Then the LORD put a mark on Cain so that no one who found him would kill him. 16. So Cain went out from the LORD’s presence and lived in the land of Nod, east of Eden.
    Whether you believe in what is written here or not, the elite believe in living under a mark or sign or symbol. Whatever the symbol was it prior very effectively to everyone the punishment they would suffer if they harmed Cain.
    This explains why the elite believe they can kill with impunity and their obsession with symbols.
    Also revealed is the fact that you will never find Kin of Cain above farming the land.
    Rev 17 said this on September 11, 2012 at 8:15 AM

    • sorry rev, i didnt catch that the first time…

      once i was in southern india – neat the very southern tip close to sri lanka. i was in a tour group and the tour guide was showing us a very old temple.

      he told us that the temple was built around 6000bc – or around 8000 years ago. two europeans in my group looked at each other and starting to laugh. i looked at them and they said “it couldn’t be more than 1500 years old” with a shrug.

      i wonder… have we been taught that egypt and babylon and mesopotamia were the first civilizations because their descendants – or at least those that practice their ancient religion – continue to rule today? do they try to destroy the history of others? or perhaps history in general? anyone up for a tour of an iraqi antiquities museum?

      india ceased to be an empire when its king thought he had seen the futility of war and he laid down his arms – leading to thousands of years of occupation, oppression, and poverty for indians. because of his mistake, indian history was almost totally destroyed and forgotten. how many other ancient cultures did meet the fate of anihilation?

    • p.s. starting a new job soon and trying to wrap things up at the currentjob… that’s why i havn’t had time to comment as much lately…

    • thanks rev..i see so many references to green and man these days i wanted to find the origin of the theory..

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