Business

Last week, the world began to wake up to the fact that all of the “Chicken Littles” screaming that the sky is falling in high yield were right. 

One of the biggest disconnects in the market in recent years has been the unprecedented divergence, shown below, between stocks and (initially) junk bonds, although the weakness is spreading across all fixed income verticals.

That all changed last week when the very same mutual and hedge fund gating shockers that unleashed the 2007 crisis made a very unwelcome appearance, leading to a very unpleasant episode of deja vu even among equity investors who until this point were happy to keep their heads planted firmly in the sand.

With the Fed's "imminent rate hike" announcement just three days away, the tremors not only continue but are getting bigger and more threatening with every passing day.

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Fractional-Reserve Banking is Pure Fraud, Part IV

Written by Jeff Nielson (CLICK FOR ORIGINAL)

Following weakness in the middle-east and as WTI prices slide back into the red (on the heels of record speculative shorts in crude oil), Asia-Pac stocks are opening to the downside (but only modestly). On the bright side, the ZARpocalypse has been delayed briefly as the Rand is rallying on the back of Zuma hiring a new finance minister.