The events unfolding in Europe have just started. The Cyprus “tax” (confiscation) has started to collapse the EURO as shown below. We will know in a few hours how the gold markets will react.
What should you do? The real question is what should you have already done: removed your money out of 1’s and 0’s. If a bank run starts when the European banks open, you may find yourself waking up to a bank holiday in the United States tomorrow morning. At that point, the consequences of a world wide economic collapse will no longer be a point of speculation.
David DeGerolamo
FX Market Opens, EUR Hammered, CHF Bid; S&P To Open -30pts
As Citi’s Steven Englander suggested earlier, the developments in Cyprus will lead to EUR selling and USD, CHF, GBP, NOK and SEK buying (in that order). He adds, the issue is whether to believe that the Cyprus levy on depositors is one-off, but depositors and investors elsewhere could easily see this as another in a string of ‘one-offs’ and react badly.
Hold on people the ride just went over the top and is speeding to the bottom, will it loop and continue or crash?
It was only a matter of time.