Business

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.

Hold your real assets outside of the banking system in a private international facility  -->  http://www.321gold.com/info/053015_sprott.html 

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.

Despite the bloodbath in corporate credit markets, talking heads remain cognitively dissonant as to the reality lurking under the surface of this colossal leap in cost of funds for every firm. However, Credit Suisse is "worried" about the implications of these two disheartening charts expose, suggesting a default environment that might abort the Fed hiking cycle - which in this case is not a market-reassuring outcome.