Rising Mortgage Rates Spell Doom for Banks

By Sasha Cekerevac for Investment Contrarians 

One reaction that should not surprise long-term investors is that the market will move far quicker and further than most people expect. Even before the Federal Reserve has made any statement regarding the timing of reducing its asset purchase program, investors have already begun selling their fixed-income investments, which is causing yields to rise.

Key Market Trends June 19, 2013

By Emann Charts

If Bernanke really shakes the tree, half the world may fall out

We no longer have a free market. The world’s financial asset prices have become a plaything of central banks and the sovereign wealth funds of a few emerging powers.

Julian Callow from Barclays says they are buying $1.8 trillion worth of AAA or safe-haven bonds each year from an available pool of $2 trillion. Nothing like this has been seen before in modern times, if ever.

China, Iran and US: India's Tough Oil Triangle

By John C.K. Daly of Oilprice

India's relentless search for hydrocarbons to fuel its booming economy has managed the rather neat diplomatic trick of annoying Washington, delighting Tehran and intriguing Baghdad, all the while leaving the Indian Treasury fretting about how to pay for its oil imports, given tightening sanctions on fiscal dealings with Iran.

Not Even Insane Money Printing Can Save Japan

By Anthony Harrington via QFinance

On 12 June Japan's Nikkei index fell 6.25% to 12,445, it rallied a touch the next day, but that drop was sharp enough to send shock waves through the Japanese political establishment and to put chills into the heart of the global investment community. Just a few weeks earlier, on 22 May, the Nikkei peaked a few points short of 16000 under the influence of bold statements from the Japanese Prime Minister and the Governor of the country's central bank, who said, more or less, that they intended to run the printing presses flat out to get rid of the deflation that has plagued the country for two decades, and to restore a "healthy" rate of inflation, somewhere around 2%.

Do You See The Future of America in Detroit?

By Michael Snyder

Eventually the money runs out.  Much of America was shocked when the city of Detroit defaulted on a $39.7 million debt payment and announced that it was suspending payments on $2.5 billion of unsecured debt, but those who visit my site on a regular basis were probably not too surprised.  Anyone with half a brain and a calculator could see this coming from a mile away.  But people kept foolishly lending money to the city of Detroit, and now many of them are going to get hit really hard. 

Key Market Trends June 18, 2013

By Emann Charts

UK's Co-op Bank agrees to £1.5 billion 'bail-in' rescue plan

(Reuters) - Britain's Co-operative Group CWSGR.UL will force bondholders to help plug a 1.5 billion pound ($2.4 billion) capital hole, avoiding a repeat of unpopular taxpayer-funded bailouts made during the financial crisis.

Using a "bail-in" rescue model, bondholders will have to swap their debt for new bonds and equity in the bank, which will be listed on the London Stock Exchange.

More Iran Oil Sanctions Could Backfire on Europe and U.S.

By Gail Tverberg

A June 6, 2013, article from Reuters is titled, “Lawmakers in new drive to slash Iran’s oil sales to a trickle.” According to it,

U.S. lawmakers are embarking this summer on a campaign to deal a deeper blow to Iran’s diminishing oil exports, and while they are still working out the details, analysts say the ultimate goal could be a near total cut-off.