What happens when the Federal Reserve loses its strangleholdover debt markets? Investors are finding out.

The selloff in corporate bonds is deepening, and investors areseeking safety in the longest-dated government debt, which doesbest when the economy does worst. Defaults are rising as oiltumbles and investors are looking for the best ways to hedgeagainst credit losses.

All this comes as the Fed does, well, nothing much. Instead,it's China that's taken the lead with new rounds of financialstimulus in the face of slowing growth. But some days it's afree-for-all, with even Kazakhstan wielding its influence.

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