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Yes...and therefore, this recent yield inversion may not be related to growing risk of recession in the US. Maybe it is, maybe it isn't. I don't know. That's
by cs702 7y ago
Yes...and therefore, this recent yield inversion may not be related to growing risk of recession in the US. Maybe it is, maybe it isn't. I don't know. That's why I'm leery of predictions made based solely on the inversion of yields. Things are different this time.
That's my point :-)
- nickles 7y ago> this recent yield inversion may not be related to growing risk of recession in the US It's been a reliable signal in the past, but perhaps this time is different. Interestingly, some economists postulate that such an inversion may be somewhat causative of recession, due to increased short term funding costs relative to long term funding costs.
- cs702 7y ago> It's been a reliable signal in the past, but perhaps this time is different. Yes, we're in agreement :-) > Interestingly, some economists postulate that such an inversion may be somewhat causative of recession... That could be true... I don't know.