As I've mentioned before, a big jump in interest rates could create chaos for the holders of many MBS derivatives. Here is an example of how just a small rate rise caused turmoil: Analysis: Bank of America's interest-rate exposure may be worse than rivals.
Detroit files for bankruptcy protection. (Is it just a coincidence that all of the city's mayors for the past 50 years have been Democrats?)
Speaking of Detroit, Commander Zero had some quite wry commentary. (Thanks to Gil in Montana for the link.)
Items from The Economatrix:
Weak Retail Sales Means Fed Tapering Later vs. Sooner. [JWR's Comment: Don't hold your breath. Ben is very unlikely to give up QE before he leaves his post in December. Nor is his successor. Free money is the world's most addictive drug.]