This deal will be spun as "another save" and lauded as "inventive" and important as a resolution to the "banking crisis" that really wasn't a crisis just prior to it becoming suddenly a crisis. Here is the bottom line.....The Eurozone MUST save the CONfidence factor by insuring the under 100K depositors with the "deal". THE PROBLEM IS.........they already let the genie out of the bottle with the initial "bail in deal". Peeps are now clued in....and know the bankers will steal their accounts. The most conservative investment in the Peep's mind was "money in the bank" and now that is no longer safe. What would you do next week if you had money in the peripheral country's banks? What do you think the Banker's will do?
Here is the key....They (bankers) will implement CAPITAL CONTROLS. They will have no choice or it will make a giant sucking sound as money from every account in Cyprus evaporates in a blink of an eye. Remember....."fiat" is "digital" now.... But it gets even better. Watch for the contagian and this is why there is fear in the heart of all the bankers tonight. If this genie is working its way out of the other peripheral accounts tonight then money is moving into every safe haven available and out of the peripheral's banks. This instability is disastrous if it develops and "capital controls" will be evident fairly rapidly outside of Cyprus. This will require the headline price of gold to be held in check tomorrow. Let's see how it holds.
MSM will be painting this with every coat of candy cane pink they've got tonight and tomorrow. Rally caps on gang. gl