Yield curve hits record high

[saveliberty]

Clear sign of impending inflation. This is not going to be pretty. Will the doctor be making cardboard box calls?

 

[Avatar4321]

Not hard to reach highs when you dropped so low this past year.

It sucks being a Republican, doesn't it?

Not at all. I enjoy it quite nicely.

I hope you have a very Merry Christmas

 

[Chris]

Not hard to reach highs when you dropped so low this past year.

It sucks being a Republican, doesn't it?

Not at all. I enjoy it quite nicely.

I hope you have a very Merry Christmas

I will.

Now that the economy is recovering.

 

[Missourian]

Why isn't this in the Stock Market Forum?

 

[Avatar4321]

It sucks being a Republican, doesn't it?

Not at all. I enjoy it quite nicely.

I hope you have a very Merry Christmas

I will.

Now that the economy is recovering.

You do realize that the stock market and the economy are two separate entities right?

 

[Gunny]

Why isn't this in the Stock Market Forum?

Must you debase yourself posting ina thread that Chrissy and Rdone are the main contributors?

I'm thinking you need to share that eggnog.

 

[Chris]

Why isn't this in the Stock Market Forum?

Must you debase yourself posting ina thread that Chrissy and Rdone are the main contributors?

I'm thinking you need to share that eggnog.

Merry Christmas to you too, Gunny.

 

[Chris]

Not at all. I enjoy it quite nicely.

I hope you have a very Merry Christmas

I will.

Now that the economy is recovering.

You do realize that the stock market and the economy are two separate entities right?

Do you do any reading at all?

WASHINGTON - The U.S. economy grew in the third quarter at a 2.2 percent pace - but the gain was less than previously estimated, the government reported yesterday.
Even so, all signs suggest the economy will end 2009 on firmer footing as it bounces back from the recession.

The Commerce Department's new reading on gross domestic product for the July-to-September quarter was weaker than the 2.8 percent growth rate it estimated a month ago. Yesterday's report was the final one on the third-quarter GDP, and economists had predicted this figure would remain the same as last month's estimate.

The GDP, the broadest gauge of the economy, measures the value of all goods and services produced in the United States.

The main factors behind the downgrade to 2.2 percent were that consumers didn't spend as much as previously estimated, commercial construction was weaker, business investment in equipment and software was softer and companies cut back more on their stockpiles of goods.

Still, the economy managed to return to growth during the quarter after a record four straight quarters of decline. That signaled that the deepest and longest recession since the 1930s had ended and the economy had entered a fragile recovery.

The recession's end has not been declared by the arbiter of such data, the National Bureau of Economic Research. But it generally does not date the start and end of recessions until it analyzes months of economic figures.

Many analysts still think the economy is on track for a better finish to 2009 in the current quarter. One sign was a separate report yesterday that home resales surged in November to their highest level in nearly three years, thanks to an extraordinary level of federal support. The report added to evidence that the housing market, which led the country into recession, is on the mend.

For the fourth quarter, the economy is probably growing at nearly 4 percent annual rate, analysts said. A few peg it closer to 5 percent.
GDP growth slows, recovery still on track | Philadelphia Inquirer | 12/23/2009

 

[The Rabbi]

Generally, when the yield curve is steep, it is forecasting economic growth.

That is probably the case today, but this is also a very different type of recession than we've had since WWII and the dynamics are unknown given the extraordinary amount of interference by the economy.

Or it is signaling future inflation, which is what I suspect. ANd I further think it will be of the stagflation variety, rising prices and high unemployment ala Jimmy Carter.

And Chris is a tool, in case anyone missed that.

 

[william the wie]

I kind of feel sorry for you. Making things up.

The last time the yield curve was near current levels was 1992 and 2003.

America is going to come back big time.

Relative to the rest of the world certainly. A much higher proportion of US liabilities public and private are on the books than is true for the rest of the world.

But saying that the US is a region of relative financial sanity vs. the EU, Far East, ME, Latin America, Africa and Oceania, which is true and reflected in the yield curve, is not the same as saying the US is in good shape. All the yield curve is indicating is that the US is not likely to do nearly as bad as the rest of the world and considered all the worldwide sovereign defaults stacked up and waiting to happen that is not comforting. I read it as the smart money figuring on the Chinese bubble bursting, Japan collapsing, the EU busting up and the third world coming apart at the seams. The US could end up doing very badly indeed in that scenario and still beat the rest of the world like a drum.

 

[uscitizen]

"What does Glenn Beck have to do with anything?"

Now that is a very good question, whether in the context of this thread or anything else.