Perhaps the most underreported news to come out of Europe this morning had nothing to do with PMI or employment or credit creation in the Eurozone. It had to do with Cyprus - the insolvent island that everyone forgot - and which since its March bail in has been left for a state of Schrodingerian suspended animation, where it is either alive or dead depending on what propaganda wave function it had to satisfy.

Recall that many, most certainly us, said that the imposed capital controls would have no impact in stemming the massive outflow of what money is left with the insolvent banking system, and very soon the entire banking system would remain deposit, and thus funding, free requiring more and bigger bailouts. Sure enough, this was just confirmed when the Central Bank of Cyprus reported that not only did local deposits drop to a level not seen since 2007, plunging by the second fastest absolute amount in history, but declined at the fastest rate ever!

http://www.zerohedge.com/news/2013-07-25/cyprus-deposits-plu...