This is what is flashing across the top of the screen on CNBC.
Time for everyone to line up and say why this time will be different and not lead to recession.
Assuming this time is not different, an inverted curve (I don't put much stock in it being inverted for only ten minutes so far) will lead to problems for equities in a few months.
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5 comments:
We are sure to be bombarded with reasons and temporary evidence as to why it is indeed different this time, only to find out months later that it is not different this time.
It never stays inverted for long, but that doesn't undo its effects.
Isn't the official measurement of an inverted yield curve the 3 month versus the 30 year?
Major market crash coming next week, i just got the call from some hedgies and mms... Look out Santa bought puts!! It will be ugly next week
Historically, have inverted yield curves always led to recessions? The last time I remember an inverted yield curve being talked about a lot was around the year 2000 (along with the past year).
That's about as far as I go back. Was there an inverted curve in 1990? That was a time leading to a recession, right?
Wasn't there also an economic slowdown in the mid 90's? Or was that just a market slowdown/temporary bear market? Either way, was an inverted yield curve in play then?
to Chad,
inverted curve has lad to recession six out of the last seven inversions go back to, I believe, 1950.
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