Cyprus? Really?!

Flack

I’ll bet 99 out of 100 traders on the floor of the NYSE
couldn’t locate Cyprus if they had a GPS, a map, a compass and
a native guide.
Gunning for profit taking…
When the smallest piece of crap in the EU triggers a sell off,
you know that the sell orders were already loaded in a 15-bullet clip and
ready to go.
When traders realize that even Kevin Bacon has more than
seven separations to Cyprus, selling will slow.
In fact, it looks like it already is slowing.

JoeNoEskimo

The concern is that Cyprus is the test lab for other EU countries (Spain, Portugal, Italy...) that might seek to replicate this bailout procedure - which essentially rapes the nation's savers.
This is unprecedented in modern history as far as I know.

The markets are watching.....

hank

Thanks for some perspective Flack. Was trying to think of a appropriate remark, but you got there first. Until yesterday I thought Cyprus was a tree. And, hell, markets move more every time Bernanke sneezes or takes a c***. Everybody can "celebrate" which funds did well after today (those loaded with gold & treasuries should shine). But - in the overall scheme of things - all pretty meaningless. Thanks.

hank

Reply to @JoeNoEskimo: What's scary is it could happen anywhere - including here. Confiscation's generally been a tool of banana republic coups and the like. But - as govts grow more desperate who knows? How about a 10% "administrative surcharge" on Roths? ... And, next time the Fed steps in to backstop money market funds, might not for free.

EDIT: MJG makes some excellent points re:Cyprus in another thread. To be clear here, I don't foresee confiscation of deposit money taking place outside the legislative-judicial process in the U.S. (as is apparently happening in Cyprus). However, I think the possibility of legislated measures to that effect are quite high over the next 10-30 years - particularly in respect to the tax-deferred accounts such as IRAs. And, remember that with tax legislation, laws can be enacted with "retroactivity" - effectively preventing people from pre-emptying the new tax (by withdrawing funds). The rationale will sound eerily similar to he ##**!!** coming out of DC today. Need to cut the deficit, Can't continue spending our grandchildren's money. We're broke. Living beyond our means, We don't want to become another Greece, Cyprus, Spain (you name it). ... Ad Infinitum.

scott

Wal-Mart can bribe officials and what would have caused trouble a decade or two ago is forgotten within a week or two. A mexican bribery scandal was the best buying opportunity for Wal-Mart in years. There's been a number of other instances of criminal behavior that just gets ignored (MF Global, etc.)

Greece riots and people think the country is going to fall apart and now people barely even remember that. Life still sucks for the Greeks, but the market moves on. A bunch of people get screwed in Cyprus and the market is already seeming like it's moving on. Bank runs? They'll just be bailed out - and yet some people are remarkably for the status quo of banks continually being bailed out and catered to.

Mark

It's always about what folks "think" will happen.

Flack

The more fools, the better.
When the market suckers in the likes of Mila Kunis and
other celebrity nitwits, we still have room to run higher.
Before a serious flush, traders want to see a volume spike.
On a seasonal basis, this should show up in about a month or so.
A sell off now would discourage the Mom and Pop dumb money and
we can’t have that – the ‘we’ being the heavy traders.

JoeNoEskimo

Reply to @hank: No doubt, a doorway has been opened.

hank

Reply to @JoeNoEskimo: Various types of doors come to mind. (Aunt Elma had a laundry chute upstairs. Everything pushecd through that door ended up in a heap in the basement:-)

scott

Reply to @JoeNoEskimo: "The markets are watching....."

And about to go green. lol, ridiculous. Of course, big headlines telling people to ignore what's happening there: "Why this Cyprus crisis may be off radar in mere days." (Marketwatch)

MaxBialystock

The Fat Cats, including the various governments with the power (if not the right) to do what they feel like doing, will survive and eventually thrive. Money talks. The System is set up to rescue the wealthy at the expense of "Mom & Pop." We who are invested would do well to stay invested, as long as you have a long-term time-horizon. It will take at least a generation or two for the EU to come through this mess. I thought the idea for "blue' and "red" bonds was not a bad one. And why---today, of all days, is IRELAND in the green while the rest of the world's bourses are sinking? Ireland's ISEQ was up today by 1.48%. (?)

scott

Oddly, my one European holding (Gemalto) up, everything else not so good.

Ted

Much to do about nothing ! Remember the 'Fiscal Cliff & Sequestration.' This market is going higher, and "if you can't stand the heat get out of the kitchen". Turn off CNBC and ignore Zero Hedge.Com
Regards,
Ted
Cyprus Crisis Will Soon Blow Over
http://www.marketwatch.com/Story/story/print?guid=9A71F944-8FCE-11E2-8A9D-002128040CF6

Hiyield007

Reply to @Ted: Ditto on Zero Hedge. Quit looking at that perma-bear site long, long ago.

BobC

The media have to have a crisis du jour. Cyprus, are you kidding me?