Cypriots scalped*Updated: In response, a bomb has just been detonated at the Limassol branch of the Bank of Cyprus

Multiple breaking reports indicate that in an early Monday meeting with Lagarde, Draghi, & Von Rompuy, Cyprus’ President Anastasiades has agreed to a Cypriot bank restructuring/ depositor haircut deal in exchange for €10 billion in emergency loans from the ECB.

The deal reportedly will avoid the necessity for any vote by the Greek Parliament, and is far, far, far worse for Cypriot citizens and depositors than the one the Cypriot legislature voted down on Thursday, as the ECB will reportedly be handing out 40% haircuts for depositors with over €100,000 on deposit in the Bank of Cyprus, and deposits over €100,000 at Cyprus Popular bank will be WIPED OUT!!!

Forget haircuts, the Cypriots have just been scalped alive by the ECB & IMF!

globalization dominoBurning senior bond holders could create contagion again in European debt markets and now in addition to that bureaucrats have managed to make depositors in periphery nations nervous about their deposits in banks. This could precipitate bank runs in Greece, Spain and Italy with obvious negative ramifications for the entire EU banking and financial system.

Cyprus is a little domino which has fallen and may knock the larger more important dominos of Spain and Italy thereby creating contagion in the Eurozone. Especially as the political backlash against the EU and Troika is likely to be substantial and could lead to more power being gained by parties and movements that advocate leaving the European Monetary Union and indeed the European Union.

Cyprus haircutsRT reports that Cyprus & Troika officials have agreed to a 20% haircut on all deposits over €100,000 at Bank of Cyprus, and 4% on deposits at other Cypriot banks
Which essentially means nothing until the measure is passed by the Cypriot Parliament. 

With the ECB/IMF threatening (bluffing) to kick Cyprus out of the Eurozone unless €5.8 billion is raised/ stolen from Cypriot depositors by Monday, the next 24 hours should be quite interesting as we see whether Cyprus holds its ground and follows in the footsteps of Iceland, or kowtows to the ECB bureaucrats and agrees to a 20% theft of it’s wealthiest citizens.  (particularly following yesterday’s report that insiders tipped off the majority of wealthy Russians in the days leading up to last Friday’s announcement, meaning Russian wealth is already looong gone) 

rocketSubmitted by Deepcaster:

A Climacteric began in the International Economy and Markets last week. Its Ramifications have not been widely acknowledged. It provides Great Opportunity and Great Risk. Moreover, this Mega-Development signaled that a Great Opportunity Window is beginning to close. And it signaled loud and clear that The Great Danger of which we have earlier written is approaching ever nearer.

stock market collapseSubmitted by Morris Hubbartt:

At this point, quantitative easing is pumping about 85 billion electronically printed dollars a month, into bonds and other “quality assets”. Without the artificially low interest rates that QE creates, the economy would probably implode.  I view the current market as a dangerous place to allocate investment capital. I targeted 13,500 initially, for the Dow.  Now I’ve added a 2nd target, which is 12,200.

Down-day volume is beginning to overwhelm up-day volume, which is extremely bearish. The Dow could soon form a huge double top pattern, just as the infamous “Sell in May, and go away!” period of time arrives!
Overall, the stock market continues to be a huge beneficiary of QE policy. How long can this stock market rally continue? To help answer that key question in more detail, I am focused on two leading indicators.

Youtube SD WeeklyEric Dubin & The Doc break down the trading action in gold and silver and preview next week’s options expiration in the metals.

We discuss the implications of the Cyprus bail-in, whether bank runs are imminent in Greece, Italy, & Spain, and the likelihood that a full-blown contagion has been triggered due to the loss of confidence in the banking system.  

SD Weekly Metals & Markets is below:

GoldCOTBy SD Contributor Marshall Swing:

Gold & Silver COT Report 3/22/13:

Commercial longs added 3,085 contracts from their total and covered a total 101 shorts to end the week with 45.03% of all open interest, an increase of 0.09% in their share since last week, and now stand as a group at 132,195,000 ounces net short, which is a massive decrease of almost 15 million net short ounces from the previous week!

jim sinclair*Updated with more in-depth recap from SD reader GL

For those unable to attend the legendary Jim Sinclair’s NYC Q&A meeting yesterday, we have provided SD readers an exclusive full recap summary of the meeting below.

While 5 hours of Jim Sinclair’s wisdom could never be conveyed in a single post, of note- Sinclair urged PM investors that they have 2 years to remove your IRA funds before they are lost to forced Treasury allocation, and to stop contributing now.

Sinclair also confirmed he sees a triple digit future for silver, but that silver’s rise will be orgasmic- a rapid climax rally followed by a dramatic decline. 

Full recap of Jim Sinclair’s NYC meeting is below:

Zeal032213ASubmitted by Adam Hamilton, Zeal

The loathed and left-for-dead gold miners look to have begun their usual spring rally.  This sector has actually exhibited strong seasonality for its entire secular bull.  For well over a decade, most years have enjoyed a major gold-stock rally between mid-March and early June.  These favorable seasonals are a welcome tailwind for a sector that is radically undervalued fundamentally and overdue to explode higher.

unemployment-emratio-fixed-smallToday’s chart of the day examines the official US unemployment rate, which has been declining steadily for the past 3 years vs. the employment rate.
The employment rate is the ratio of employed persons to the total civilian noninstitutionalized population 16 years old or older. Also termed the employment rate, the employment-population ratio is used as an alternative to the unemployment rate as an indicator of the utilization of labor resources.
The employment rate chart paints a very different story…

FDICWhat is more likely to hurt you is what you think you KNOW that is WRONG. What you don’t know is often not that important. Consider a few examples:

Cyprus Bank Accounts.  MF Global.  Social Security.  Retirement Accounts.  Europe in 1913.  Real Estate.  The dollar is as good as gold.

There are many other examples, but the essential truth is simple: For the most part, we are ignorant of many ideas and events in the world, and it rarely matters. But, what is often costly and destructive are the ideas and beliefs that we think are true – when in fact they are quite wrong.

Our savings and retirements are at risk when we invest them based on beliefs that may be incorrect. This is one of many reasons why people buy gold and silver – for insurance against unexpected events. What if our perception of financial reality is incorrect or if we are ignoring financial reality? Ayn Rand said it best, “You can ignore reality, but you cannot ignore the consequences of ignoring reality.”

Texas goldJim Rickards joins Lauren Lyster with the Yahoo Daily Ticker to discuss gold, and plans for a Texas Depository run by the state of Texas that holds gold and will protect it from Federal confiscation under the 10th Amendment.
The proposed legislation would allow Texas pension funds to invest in PHYSICAL gold (such as the Texas Teachers Retirement fund, one of the largest pension funds in the world after CALPERS) and would create the Texas bullion depository- the Fort Knox of Texas!  
Furthermore, the bill contains a clause nullifying any confiscation of gold by the Federal government!

Assuming the legislation passes, it may be looked back upon one day as the first step in the State of Texas seceding from the USSA.