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Episode to bring in Keith FitzGerald -- case welcome back I once told you about this Cyprus vote.
If it is a no look vote Scott shot of -- says doesn't matter it's no big deal what say you.
I disagree with Scott I think it is a big deal because it sets and state is sets the stage for a very very dangerous precedent I would not be surprised at all if Russia comes in cash for oil.
I would not be surprised if China strikes a similar deal.
Well and that's interest and because that becomes an international intrigue power play.
Because it didn't vote no we're not gonna -- bank accounts -- they don't get the bailout money from Europe.
Income the Russians -- off all will give you the money but we want your oil and gas.
That's a whole different ball game is that what does it affect the markets if it plays out like.
You bet it does I think there's a couple level this can affect the markets on first of all.
When the banks -- -- Cyprus I think you're gonna see five -- even 10% of the capital fleeing that market's gonna go to other international jurisdictions I think you're gonna see Iran a renewed interest in gold because people are gonna figure out for the first time.
That their bank deposits really -- say.
I think you're gonna see a change in the United States market -- -- maybe not the stock market immediately but certainly in the banking community because a lot of investors I've talked in the last 44 hour.
Are very very concerned about what they do with their cash because the old bank robber Willie Sutton said you know it's logically go after the banks that's where they keep the cash do you really think.
That's a serious threats that the US government could -- could come out that -- -- private bank deposits.
Yes they do they may not confiscated as as -- try to do however there -- playing ways they can get out of there imputed taxes they can say you're going to be forced to invest in government securities they -- put under the guise of maintaining stability in the financial systems.
But yes it is absolutely valid concern in the bank defenders.
Will not acknowledge it okay well we got the Dow up 3940 points at the moment -- that's -- -- -- -- from the stock market at the moment yesterday you'd -- think this has no impact on the stock market more on golden banking stocks -- -- Well I think so again what it does it calls into question the integrity of the financial community and that's what central bankers and legislators fear most.
It's not actually the markets themselves it's fear of the markets in fear of stability because that's what really drives confidence and that's the one thing that Bernanke can't afford to lose right.
Here's what I think might happen.
There's a no vote.
The Russians stepped in with an offer to battle out Cyprus the Europeans think we can have the Russians -- in the middle of Europe like this so we will provide the money after all I think that might happen -- -- -- I think that very good power play and it's a very logical progression of events but I would not count out the Chinese in this one -- Keith FitzGerald always good stuff thanks so much in the case.
Now he was --
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