I have been saying all along here on my blog to watch the bond market. That is where you will see trouble first. Right from the 1st day of trading for the year the bond market started showing signs of stress. The paradigm shifted caught a lot of people on the back foot. Only now over a month in are traders finally starting to realise that the top might be in. This is what happened in February 2008 and in March 2008 the penny dropped that the subprime was not contained and was much worse than anyone had anticipated. The Non-Farm payroll was a big miss on Friday along with other terrible data through the week has just about ruled out any possibility that the Fed can raise again in March.
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