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The recession talk was mostly media-driven based on a few cherry-picked data points. Sure, they may be right...but they may be wrong. For whatever reason, every
by tdurden 7y ago
The recession talk was mostly media-driven based on a few cherry-picked data points. Sure, they may be right...but they may be wrong. For whatever reason, every media outlet has been running with this lately.
- hn_throwaway_99 7y agoI'm going to push back against this "let's blame the evil media for everything" view. The treasury yield curve inversion is one of the best indicators we have of an oncoming recession, even if it's not 100% accurate. To not report on that very important signal would have been negligent.
- blackflame7000 7y agoMost recessions are preceded by yield inversion, but a yield inversion may or may not lead to a recession. That’s where are the misleading information is coming from. Edit: Idk why the downvotes. Yield inversions occur much more often than recessions therefore by necessity some yield inversions are preceded by another yield inversion instead of a recession.
- remarkEon 7y ago"All recessions have been preceded by an inversion of the 2-10 year, but not all inversions of the 2-10 year have preceded a recession" is the phrasiology you're looking for.
- blackflame7000 7y ago“not all inversions of the 2-10 year have preceded a recession” Since recessions are cyclical all inversions eventually lead to a recession. There haven’t been enough cycles to draw any sort of meaningful conclusions based on temporal proximity of the inversions to the recessions.
- the_narrator 7y agoyou seem to be contradicting yourself > a yield inversion may or may not lead to a recession > all inversions eventually lead to a recession
- tdurden 7y agoIt definitely makes sense to report on the yield curve inversion; that certainly could be a possible indicator of a future recession. imo, It has really been taken to another level though with doomsday articles all over the place.