While the market goes back into “risk on” melt up mode,  the S&P salivates about taking out the old intraday high (1576.09)  and the subway sentiment indicator (SSI) remains on neutral, I thought I would provide you with a cogent example from the recent Cypriot tragedy as to why you should never trust a central banker.  The attached letter comes courtesy of Zero Hedge via Grant Williams in his recent Things That Make You Go Hmmmm….both fantastic sources of all things that bankers and politicians would prefer that you not know.

Now, if you were the acting CEO of Laiki, you might feel pretty good after reading this.  Your depositors are protected not  only by the Cypriot Constitution but also by the European Convention on Human Rights…”which protect the right to own property and which are crucial to the functioning of  free market economy”.

Ahh….there’s the catch.  Euroland is not operating in anything that resembles a “free market economy”.  Silly Cypriots….they should have read the fine print…like the wily Russians did.  The smart money was well gone by the time the poor depositors with more than 100,000 euros woke up to the rort.

Now these poor saps look like getting stung for up to 80% of their excess funds.  Deserves them right for being prudent savers and not imprudent consumers…which, of course, is what the current “not so free market economy” run by Inventive Ben and Super Mario desperately require.   We shall spend our way to prosperity!

OK…enough ranting…how can we invest and trade to take advantage of this folly.  Stay tuned my friends…more on that later.   In the meantime, if you hear a central banker anywhere say…”we shall never default”…run straight to the withdrawal window of your nearest bank.