What happened in Europe yesterday is yet further proof that nothing has been done to repair the underlying fundamental issues surrounding the EU Zone financial crisis .
For those who don’t believe the government is prepared to take extreme measures that may include the seizing of retirement accounts, cash savings or even gold, look no further than Cyprus, the latest recipient of bank bailouts.
As of this moment, citizens of Cyprus are scrambling to withdraw funds from their bank accounts after the EU, with agreement from the Cypriot government, announced they will decimate funds held in personal bank accounts to the tune of up to 10% of existing deposits.
The European Union has made the determination that the people of Cyprus are now responsible for the hundreds of billions of dollars in bad bets made by their government and bank financiers, and they are moving to confiscate money directly from the bank accounts of every citizen in the country.
Could this be the black swan event I have been looking for in prior posts?
I expect things to get pretty interesting here this evening as markets get moving – and look to interpret the news. We will keep a very close eye here later this evening and into the early morning on Monday, as this “news” does line up pretty nicely with my previous posts – and suggestions of getting to cash and exiting markets mid March.
This “could” certainly be a catalyst in my view.
Trade wise (if indeed we get a strong move on this news) I would be looking to dump USD shorts immediately and reverse these trades – as well get long JPY, dumping the commodity currencies…….pronto.