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Inverted Yield Curve Is Waning as a Recession Gauge, BofA Says

By Bloomberg

An inverted Treasury yield curve is no longer a reliable signal of recession, and what matters more is the level of the curve, Bank of America economists Ethan Harris and Aditya Bhave said in a noteRead full story


  • I’m not convinced that the inverted yield curve is no longer a valid gauge of where the economy is heading. Those that want to paint a rosy picture would of course say that it’s no longer valid. The wrongheadedness of the US and UK governments are definitely affecting the worldwide economy.

  • Yields are low enough to lock in long term debt.

    But individuals have no incentive to save and investors will be taking higher risks.

    To misquote Hamlet; higher risks aye there's the rub. Bubbles get inflated and can go pop.

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