Posted on 11/29/2022 4:40:46 AM PST by Kaiser8408a
Do I hear Drums Along The Potomac or East River??
The hawkish drumbeat from central bankers is raising fears of a downturn, with global bonds joining US peers in signaling a recession, as a gauge measuring the worldwide yield curve inverted for the first time in at least two decades.
The US Treasury 10Y-2Y yield curve, on the other hand, has been inverted for 107 straight months.
And in Europe, 10-year sovereign yields are dropping like a paralyzed falcon.
The world and US yield curves are pointing to trouble. And drums along the Potomac (DC) and East River (NYC).
(Excerpt) Read more at confoundedinterest.net ...
For those of us that need a refresher. LOL:
https://www.investopedia.com/terms/i/invertedyieldcurve.asp
Inverted yield curves precede recessions. And it looks like a real doozy this time.
BidenDepression II 2023
Not sure HE “let” (allowed/permitted) it to happen.
Rather his handlers want and caused it to happen.
It is time to look hard at the “after,” i.e. what is their intended endgame state. And then plan for it. We need to run a sand table exercise at least.
It has been said that an inverted yield curve has predicted 10 of the last six recessions.
And it’s important to remind everyone that we are already in a recession.
I concur…I’ve paid attention to POTUS since I was a kid and started watching news (Nixon). He is by FAR the worst.
Can anyone explain “inverted world yield curve” in layman’s terms?
> “Can anyone explain “inverted world yield curve” in layman’s terms?”
Water at two wells; Well A and Well B.
Well A sells you exactly one gallon for a $1.20.
Well B sells you a minimum of 10 gallons at a $1 per gallon.
This is normal. Then something changes.
Well A suddenly lowers the price to a $1 for one gallon maximum.
Well B suddenly raises their price for ten gallons to $1.20 per gallon.
The reasons for this can be explained, but let’s hear it from you, why do you think the Wells flipped prices?
Ahh man. Thought I’d seen the last of Econ tests….😹
Hmmm maybe because the supply of water has dropped so it’s more difficult to get it in bulk? Because there is less they also limit the sales to a certain maximum.
Now on why they would lower the prices for small sales I’m a bit confused. Maybe there is both a simultaneous drop in demand AND supply???
The yield curve is about expectations....
of future inflation and economic growth.
When it is inverted the market is saying it believes inflation will fall and the economy will tank.
The market can be right or wrong—these are just expectations of the future.
That said—the market usually gets it right.
Yeah, less water in the pipeline.
Small sales rush to liquidate because they’ve been buying 10 gallons at low prices and reselling high. Ain’t nobody gonna buy from them at higher prices so they want their money now.
Inverted for 107 DAYS instead of months.
Uncertainty? Someone may be willing to pay the higher price for the higher volume because they are worried it will cost even more in the future.
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