“Thus, it should be understood that when pro-US figures use the term, 'rules-based international order,' they are not referring to anything analogous to the rule of law. Quite the opposite, they are using Orwellian language to describe a system in which essentially no rules can be established and/or observed, given that the dominant state has the prerogative to violate and/or rewrite “rules” at its whim.” Aaron Good, American Exception
Default risk as indicated by the five year credit default swaps on corporate bonds from Seeking Alpha
There is an obvious shift in risk in the bonds after the Fed bailout of Bear Stearns, but the stocks are not showing a similar shift for the obvious reason that while the creditors may expect some favored treatment, shareholders obviously do not.
