For those who found themselves busy fertilizing their lawns and Spring cleaning this weekend, you missed a market-moving decision as Cyprus announced (quite conveniently after Fridays close) an unprecedented levy on all bank deposits of 6.75% for accounts below $100,000 euros, and 9.9% for $100,00 euros and above. OUCH
Adding insult to injury, if you lived in Cyprus and needed cash from an ATM machine, you were out of luck as Cypriots awoke to find bank transfers already frozen as the government prepares to seize the assets when their banks re-open on the 19th although the glimmer of hope exists the final vote tomorrow could fail (there must be a joke there somewhere about PIIGS and flying).
All the talk from EU politicians. All the promises that the Euro would be fine. All of the money printing. All of the haircuts already taken. Blah blah blah blah.......and here we go again.
My hats off to whomever bought the enormous volume in VXX end of Feburary. (click on chart to
