Posted on 08/25/2019 7:57:54 PM PDT by lasereye
Bank of America Corp.’s CEO Brian Moynihan says he doesn’t see a recession in the offing because the U.S. consumer remains healthy. . . . “Look, when the yield curve moved around the pundit-ocracy got going, saying, ‘Here, this means a recessions coming,’” Moynihan told CNBC.
However, the bank boss said this time the recessionary gauge may be influenced by a global market swirling in some $15 trillion in negative interest rates.
(Excerpt) Read more at marketwatch.com ...
that dude is one nasty dope.
he is so removed from reality, a tick in his pants would not wake him up.
WallStreet is based on fake news and gossip, it’s all BS
Why wouldn’t negative interest rates affect our own yield curve?
Yep. Negative interest rates in some countries will have some bleed over effect worldwide.
If you take the distortion out of the Bond Market that has been caused by other countries flooding into our bonds the yield curve wouldn’t be inverted and there’d be no excuse for recession talk.
We don’t need lower rates because we are contracting (we aren’t), we need lower rates because yields are relative, not absolute, and ours are the highest in the world, causing market distortion. We can’t stay that disconnected for long.
Also inflation at 1.6% with a 3.7% unemployment rate tells us rates are too high. This GDP can grow at close to 4% at 2% inflation.
“This GDP can grow at close to 4%.”
True. Amazing.
Which in part is the flight to quality. 80 - 90% of all the yield in the world is available in the United States. So, the money comes flying here because you’re gonna give your money to someone — a thousand dollars — and they give you back less in 10 years ? Or you’re gonna give your money to someone — a thousand dollars — and they give you back more in 10 years?
This is the primary reason why the yield curve is distorted.
And this is one of the primary indicators our economy is solid...
But what’s going to make that happen is the underling U.S. consumer. And the underlying consumer is doing well and making more money, they're employed; and more importantly, they are spending more money
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