The IMF/EU bank heist is being put on hold because the president can’t get the votes to approve the theft. Zerohedge reports:
Moments ago the state-run CYBC media reported perhaps the most material news ahead of tomorrow’s Cyprus parliamentary vote, which at this point will likely be rescheduled once more, for the simple reason that yet another key Cypriot party, DIKO, has come out and decided to vote against the depositor-loss law on the Parliament’s docket tomorrow. This is notable because while yesterday JPM, in its “bazooka” assessment speculated that DIKO would vote for the law which made sense previously as DIKO had supported president Anastasiades in his election bid, which gave a pro-bailout vote a one vote margin. As a result of today’s flip, the party’s 9 votes will now be aligned with the “anti” votes of AKEL and EDEK, whose combined 33 votes mean the proposed bailout law has no chance of passing as they have the needed 29 votes to block any bail-in out proposal!
That’s 33 against and 20 for. It should be interesting to learn to what extent the EU and the Cypriot president were bluffing when they claimed a financial armageddon would result from a failure of the bailout plan. I suspect it’s going to look at lot more like the consequences of the US sequester, which absolutely no one in the USA appears to have even noticed.
Jim Sinclair notes: “The government leaders in Cyprus are trying to back-pedal right now in
order to save their lives. Let me say it again, they are trying to save
their own lives. Remember, ‘revenge is best served cold.’ This means
the revenge never comes at the moment of the miscreant act. But it will
come in time. To take money from the leading economic
entities in Russia, is to take money from the former KGB officers, and
taking money from them is extremely dangerous. I think the reality has
quickly set in for the leaders of Cyprus that they have aided in the
confiscation of the most serious and dangerous money you could possibly
touch. It has these leaders more afraid for their lives than their bank
UPDATE: “the Eurogroup will give Cyprus more flexibility on bank levy, and that Cyprus should safeguard depositors under €100,000, even as the full €5.8 billion deposit goal must still be hit.”
Perhaps my math skills are insufficient to grok the sense, but I don’t see how increasing the hit Russian depositors are going to take from 10% to 15.6% is going to make frightened parliamentarians any more sanguine about voting for the $75 billion bank heist.