Cyprus Rejects Bailout 38 No 19 Abstained, Finance Minister Resigns As Protesters Surround Cypriot Parliament

Just as we predicted yesterday, the Cyprus bailout vote has not passed parliament in a move that was merely there to force Germany’s bluff.

• CYPRUS BANK LEVY BILL DEFEATED WITH 36 VOTES AGAINST
• CYPRUS BANK LEVY BILL DEFEATED WITH 19 ABSTENTIONS
• CYPRUS PARLIAMENT VOTED IN SHOW OF HANDS IN NICOSIA
• ANASTASIADES FAILS TO SECURE VOTES FOR DEPOSIT LOSS BILL

What happens now, nobody knows. Prepare for a litany of very angry headlines out of the inner sanctum of Europe’s despotic chambers. Hopefully Pisani can explain it all.

Update: President Anastasiades rejects FinMin Sarris’ resignation. Unclear what happens next.

Things just took a turn for the much worse following this news from Market News:

• CYPRUS FINANCE MINISTER SUBMITS RESIGNATION – SOURCES
• MARKET NEWS CITES SOURCES ON CYPRUS FINANCE MINISTER

Unclear if German FinMin Schauble will promptly step in to fill this latest sovereign vacancy.

Desperation time for the NY Fed to preserve the market green and give the impression that all is under control, when the rats are now actively leaving the Titanic.

Let the fireworks begin  -Mort