Yield Curve is inverted....stocks plummeting...RECESSION is coming

KingofFluff

Well-Known Member
Dynamite drop in Monty
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Jones

fILE A GRIEVE!
Staff member
Pretty certain trump knows a recession is coming and due.


He’s trying with all his might to put it off until after election time.
If I had to guess I would say that he thought that China would fold pretty quickly under the weight of the tariffs and he would have had his trade war wrapped up by xmas so he could tout a wonderful new trade deal just in time for the election. Obviously that hasn't happened and now he's in a bit of a bind. Even if he backs down now there's no guarantee that will stave off a downturn.
 

bbsam

Moderator
Staff member
If I had to guess I would say that he thought that China would fold pretty quickly under the weight of the tariffs and he would have had his trade war wrapped up by xmas so he could tout a wonderful new trade deal just in time for the election. Obviously that hasn't happened and now he's in a bit of a bind. Even if he backs down now there's no guarantee that will stave off a downturn.
What a funny gamble! That the Chinese would fold because of economic hardship! What? Is the government afraid they wouldn’t be voted back in?
 

BadIdeaGuy

Moderator
Staff member
If I had to guess I would say that he thought that China would fold pretty quickly under the weight of the tariffs and he would have had his trade war wrapped up by xmas so he could tout a wonderful new trade deal just in time for the election. Obviously that hasn't happened and now he's in a bit of a bind. Even if he backs down now there's no guarantee that will stave off a downturn.

Assuming that a recession is in the works, it has historically taken about 22 months on average to go from an inverted yield curve to a recession.

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Source: After a key yield curve inversion, stocks typically have another year and a half before doom strikes

Not like this is an immediate thing...
 

Brownslave688

You want a toe? I can get you a toe.
If I had to guess I would say that he thought that China would fold pretty quickly under the weight of the tariffs and he would have had his trade war wrapped up by xmas so he could tout a wonderful new trade deal just in time for the election. Obviously that hasn't happened and now he's in a bit of a bind. Even if he backs down now there's no guarantee that will stave off a downturn.
I don’t necessarily disagree with the trade war but I don’t think the average American understands how painful it could be.

I told people when he was touting all of this. It sounds great but things will likely get much worse before they get better. And we could be looking a decade into the future before it all plays out.
 

bbsam

Moderator
Staff member
For a self proclaimed financial guru your understanding is abysmal.
You don't understand what the Yield curve measures l.

The yield curve a comparison of the 10 year and 2 year T Bill yield.
They don't make 2 year t bills.

They have been paying more interest on the short term than the 10 year that's an inverted yield curve. Today it went all the way across the board.
 

BadIdeaGuy

Moderator
Staff member
I would suggest it could be quicker this time because it is global and because the feds arsenal to combat a recession is already nearly exhausted.

I don't have any data on that one, but it sounds reasonable...
Just a bit irritating that all the news outlets make it sound like a recession is going to start tomorrow.

But hey. Drama sells, I guess.
 
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