Well, we've had O-MFG and PPG events here and several other (think Argentina) invasive maneuvers of the elite to see how easy it is going to be to steal all our cash (cause just making us poor is not good enough). All of them have been great successes so far. A billion here and there from institutions has worked out well. There has been little clawback, the courts are definitely to be on their side and no one is going to jail. Brilliant! for the crony capitalists.
Let's see how the Cypriserfs react this week when their haircuts are revealed. Let's call this a test run on a whole country to get its reaction to blatant theft. Maybe they chose Cyprus cause it is a very small isolated island. You know, if the fires get out of control there is water all around it to act as a fire break just in case the serfs get a bit too rowdy after finding their most of if not all their cash has been stolen. We all know Russia has a bunch of cash there. That makes them the wild card.
I'm not sure any of us have heard what's really happening in Cyprus. In true STB style, don't guess or over analyze from the start, cause these days nothing happens till the 11th hour (like clockwork). I don't think this saga has ended quite yet. Personally I think the people of Cyprus would rather eat dirt than sell their soul to the ECB for a 5th time, but hey, what does it matter at this point?
Just like Greece and the rest of the EU, when you are this deep into the shit, why stop now? Look at what the Bernank and the Fed are doing here. When the ultimate outcome really can't be that much worse, why stop the party now? When you already owe more than you could already pay back in the next century and the fools are willing to give you more, why not?
OK, so say the deal is done and the haircuts come, now we sit on pins and needles waiting for the banks to open and for the reaction of the millions that have had all their money stolen. How bad is it gonna get? Will that fear, panic or anger bleed over into the rest of the EU? Deposits have been shrinking over the past few years for various reasons. The rest of the PIIGS have all had this direct theft idea thrown their way in the past week. What would you do?
Maybe we've reached the point where someone in power will actually pay the ultimate cost for their sins? It would be about time a banker or politician somewhere received their just dues be it thru a court system (impossible) or via vigilante justice. I believe they have finally opened Pandora's Box. The STB catalyst has finally arrived. Hell, WTF are they gonna do in 6 months when they need another bailout? Take all the Cypriserf's cash? You know it is unsustainable and that they will have to go to the table again sooner than later. This is so stupid. What's even more stupid is that the people are not in a total revolt across the globe against the banksters and governments, but that's a whole nother post. .
On to the markets -
All right, we did good STB! Not panicking and allowing this thing to play out knowing they had another 11111111th hour solution. We've been on a wait till the banks open theme, and that seems to have worked out well so far. What do I say? Patience! Now, let's wait till the banks open and see what happens. Get ready!
Minis set a new high last night running from the weekend lows of 1534 all the way up to 1560 on the news. Funny, the /es futures say they are only up a few points at this time (and falling). That does not really reflect the 26 point ramp they pulled off now does it? The public will never know just how close they came to the big one. In my discussions this weekend and last week with random individuals of great wealth and influence, most have no friggin clue just how precarious things are. Some of them had never even heard of the problems in Cyprus. Ah, just keep relying on those financial advisers guys, they are doing you sooooooo right. Idiots.
Minis 30m - Another (green) channel up! Holy cow! Who'd a thunk it? Like the 15th in the past two months. The preferred pattern of the Fed I guess. Predictable and rising, just the way they like it. Remember the all time high and the triangle target of 6 are sitting just above. I think they have till tomorrow (or when the Cyprus banks open) to get it, or they will be out of time. I think this is it. I will remain patient (what little left I have) as I have been, but this time is different.
SPX Daily - I don't know what it is good for, but it sure looks fugly. It is what it is till it isn't, and it says it won't be sooner than later. Of course little matters concerning reality in the Fed's world. Just be glad they allow us to live in it. /sarc
I still contend this Cyprus deal is not done yet. I think they keep the banks closed a bit longer. With Easter this weekend and it being a short week, maybe they push it back another week. Maybe with Easter this weekend they go ahead and open them for two days and see what happens. Capital controls can only hinder so much. The banks are going to be run dry sooner than later. If you can't see this as an end game scenario. If you can't see the capital controls and deposit theft spreading throughout the EU, you are blind. My catalyst leading to the "event" has finally arrived.
More to come below.
Have a good day.
GL and GB!