Russians Prepare Run On Cypriot Banks Therefore Buy GOLD
There is no easy answer for the European Union regarding Southern European Nations. The banks in Cyprus had grown fat on deposits of Russians, much of that money came from Russian mobsters using Cyprus to launder illegal funds. On top of that Cypriot Banks lent out far too much money, especially to Greek banks and companies: Their loans amounted to eight times the country’s entire national income.
With Greece in the rear view mirror it is Cyprus’s turn for a 17-billion-euro bailout — but this time it is not bond-holders who get a haircut; it will be the Russian depositors. There is a current plan to restrict overseas withdraws or unless you want to pay a 25% penalty. Where will all this hot money go when the cash exits Cypriot Bank?
Gold and Silver
The Gold chart shows we are staging a small bullish flag (@leones measured target near $162.50) inside a bearish channel. The overall pattern is still a pennant with a flag pole where a mounted base started back in 2000-01 and peaked in September 2011. Although I'm thinking this move will be rather fast, keep an eye on fibonacci levels for support- resistance.
With Greece in the rear view mirror it is Cyprus’s turn for a 17-billion-euro bailout — but this time it is not bond-holders who get a haircut; it will be the Russian depositors. There is a current plan to restrict overseas withdraws or unless you want to pay a 25% penalty. Where will all this hot money go when the cash exits Cypriot Bank?
Gold and Silver
The Gold chart shows we are staging a small bullish flag (@leones measured target near $162.50) inside a bearish channel. The overall pattern is still a pennant with a flag pole where a mounted base started back in 2000-01 and peaked in September 2011. Although I'm thinking this move will be rather fast, keep an eye on fibonacci levels for support- resistance.