[SierraWasp]

There went the Santa Clause Rally, right down the toilet thanks to the bond market!!!

[NeoCaveman]

Thank the Fed.

If they hadn't overreached in their raising of short term rates, there wouldn't be a yield curve inversion.

[SolidSupplySide]

Dow slumps triple digits as Treasury yield curve inverts (recession indicator)

I remember clearly the recession of 1998.

An inverted yield curve is a good recession indicator except when it's not.

[xcamel]

Morons.. loser sell-off to claim losses for 2005. It'll all get bought back in about ummm... 31 days.

[BostonianRightist]

The Dow didn't drop until people started screaming about "recession indicators".

[theDentist]

Gee, thanks Fed.

[q_an_a]

i got $35 oil by the end of the year wrong - in my fantasy game, but speculators are going to pay for betting against the American dream in 2006.

[Brilliant]

It does not indicate recession. It simply indicates that investors think interest rates will be lower in the future.

[SierraWasp]

I wonder what effect this may have on the market for Schwartzenegger's massive bondage for infrastructure???

[montag813]

One good result of all this...

Plunging bond yields. Should give a nice boost to the housing market in January, especially in New York City, when the record bonuses will be spent.

[Go Gordon]

the only time in the last 30 years that an inverted yield curve wasn't followed by a recession was in 1998,

I beg to differ. We were in recession in 2000/2001

[tubebender]

Oh my, Market falls to its lowest level in...its lowest close in 2 weeks... FReepers hardest hit!!!

[SolidSupplySide]

the only time in the last 30 years that an inverted yield curve wasn't followed by a recession was in 1998, when the curve inverted briefly during the Asian financial crisis.

That is objectively false. There was no recession in 1988.

[Mase]

..the only time in the last 30 years that an inverted yield curve wasn't followed by a recession was in 1998, when the curve inverted briefly during the Asian financial crisis.

In the last 30 years, the yield curve has had to invert by two percentage points or more for a recession to occur. I haven't seen anyone predicting that kind of inversion as yet.

[antaresequity]

Not a single Bear on the board...

And most if not all of you 'blamed' the selling on 'tax loss', 'profit taking', 'bond markets'....etc etc etc...Anything but the stocks themselves...

All Bulls and one Bear (Me)....

I feel even better about my Cash, and Net Short Position...he eh...

When you guys are saying 'this market sucks', 'I think I will short some stock', 'I am going to get some more Puts'...I know it will be time to reverse...

[Cyber Liberty]

ARRRRRRRRRRRRRRRRRRRRGHHHHHHH!!!!!!!!!!

[ex-Texan]

View the chart posted on my # 106 and read my # 99 on this thread. The treasury yield curve is not inverted. The curve is flat for the first time in five years. But it may be inverted early next month. An inverted yield curve is only one sign of recession. The are some others that the MSM have not focused on yet. Watch the news very closely. Over 800,000 real estate related jobs are at risk; if they are lost when the real estate bubble collapses, watch out. The bubble just popped in Boston.

http://www.freerepublic.com/focus/f-news/1547701/posts?page=106#106

[ex-snook]

Where are those guys who were predicting 11000 a few weeks ago - Their wind done gone.

[pleikumud]

High demand for longer term bonds (particularly by foreigners) reduces yields.
Government using more short term borrowing.
Very strong economy, low inflation.
Inversion not a big deal.

[Jigsaw John]

The Dow ($INDU) slumped 105 points to an unofficial close of 10,778, its lowest close in 2 weeks and the biggest one-day point loss since Oct. 27.

WOW! And right after Christmas??

[BnBlFlag]

Greenspan pulling his usual stunt to create a recession just before an election when Pubbies are the incumbents.