Cypriots? OK, who came up with that one? I guess it sounds cool being delivered with some wicked EU accent but to me it just does not work. Cypricitizens or Cypipeople, nah those don't work either. Cytizens is not bad. How bout Cyprisheeple or Cyprisurfs? Now were getting closer.
So we wait. Either way the CB's cards are on the table. Without doing a five paragraph summary that rehashed everything you've read over the past 24 hours, let's simply say the game is coming to an end. When you cant tax more or introduce more austerity and it comes down to directly stealing money from your people, it's game over. Cyprus is first and now they are bringing in Italy and Spain. How long till the CB's go after the deposits of the rest of the PIIGS? STB's catalyst has finally arrived. It may take a while still for this to lead to the event, but this is it.
The CB's have known all along these funds would never be paid back. I highly suggest you look into the possibility of a 15% looting on the Italiots, sorry that Cypriots thing has me all confused, I mean Italian's savings. Now ask yourself, is this another Conspiracy Fact -
"Are we now seeing yet another example of the “IMF riot” –
where the banking elite deliberately fosters social dislocation as a
ruse to seize control of a nation’s economy and begin the process of
asset stripping, just as happened in Greece and Argentina? Are Cyprus
and Italy now in the crosshairs?
As respected investigative reporter Greg Palast exposed in 2001,
the global banking elite, namely the World Bank and the IMF, have honed
a technique that has allowed them to asset-strip numerous other
countries in the past – that technique has come to be known as the “IMF
In April 2001, Palast obtained leaked World Bank
documents that outlined a four step process on how to loot nations of
their wealth and infrastructure, placing control of resources into the
hands of the banking elite.
One of the final steps of the process, the “IMF riot,”
detailed how the elite would plan for mass civil unrest ahead of time
that would have the effect of scaring off investors and causing
“This economic arson has its bright side – for
foreigners, who can then pick off remaining assets at fire sale prices,”
writes Palast, adding, “A pattern emerges. There are lots of losers but
the clear winners seem to be the western banks and US Treasury.”"
Meanwhile, back in Gotham City, Moonbatman is in the process of taking our guns and stocking the DHS with enough ammo to kill us all six times over. To briefly end this, I'll ask one simple question - Are you ready for when this hits home? It's coming. I promise. It's the $19 trillion in retirement savings they are after stupid.
On the domestic front it appears that RE is friggin killing it. According to Bloomberg building permits are at an almost 5 year high and builders are breaking ground at the second fastest pace since 2008. WTF? Really? All you can do is laugh. Shadow inventory? Who needs it?
FOMC meets today. Yea! Is there any commentary necessary here? I don't think so, Rinse/Repeat.
On to the markets -
Wait and see mode with the FOMC at it and the Cypriserfs in limbo without any cash. All is well dude. No worries. Hakuna mattata man.
I do suggest you see this post from Denninger analyzing the last top from the Bear Sterns announcement to the top (150 SPX points later). These catalysts hit and then take their sweet time to work their Stuxnet ways into corrupting the system till it completely fails. In this case it will take a while, but eventually some sort of CDS trigger is gonna hit and kaboom goes the system. We're close. STB over a year ago forecasted that Q1 of 13 would be as far as they could take this charade. I'll be close. Over three years ago I forecasted this would all end in massive default. That's coming as well.
Potter and the PPT (with a little help from CNBS and the MSM) did a
miraculous job yesterday. They really have those bots working well. You
must give them credit. Let's see how they handle the gap down Thursday
or thru the coming weekend. I have a feeling this is about to get really
ugly. They have managed to piss off the Russians this time.
Minis 30m - Backtesting busted blue channel support. If this were any normal market, I'd be shorting like a mofo at this point, but this is not any normal market. Since the move thru 1375 there have been at least six topping patterns that have failed. This is a brave new investing world that is dominated by computers and corruption. All we can do now is wait on them to turn on themselves (a la LEH). Remain patient and have your hand sorted properly. It's almost time to place your bets. I would not be surprised to see some weakness showing up in price.
No SPX chart this morning - not necessary - if something should happen I'll throw one up below. You've seen the charts - go back and look at the weekend post (or any post for the past month) - they are miserable.
As usual more to come below. If you missed yesterdays 200+ comment stream, it was really good with tons of links and info. Thanks to all there for their contributions.
Have a good day.
GL and GB!