I’m sure
by matt at 1:44 pm on December 27th, 2005 in Bulletssomeone on Fox News is spinning it as a good thing, so I say good luck with that:
Stocks tumbled Tuesday as the bond market gave signals that in the past have preceded economic slowdowns. The Dow Jones industrial average lost more than 100 points.
The yield curve, the spread between the yields of short-term and long-term bonds, inverted for the first time in five years. That means short-term interest rates were higher than long-term interest rates. Investors have been watching the yield curve closely because, in the past, inverted yield curves have preceded recessions.
seamus wrote:
I wouldn’t worry too much about the inverted yield curve, which is more a function of supply-and-demand than it is predictive of recession. You’d be hard pressed to find a respectable economist or financial analyst predicting recession next year.
That said, you’d also be hard-pressed to find a respectable economist or financial analyst who’s happy with the current structure of the US economy over the long haul. The infuriating part is that the government has little impact on next year’s economic growth, but the structural weaknesses — taxation, deficits, trade, energy dependence, education — are entirely the result of bad political decisions.
Posted 28 Dec 2005 at 2:05 pm ¶
matt wrote:
>I wouldn’t worry too much about the inverted yield curve, which is more a function of supply-and-demand than it is predictive of recession. You’d be hard pressed to find a respectable economist or financial analyst predicting recession next year.
maybe not recession, but not a whole lot of predictions for a good market year.
>The infuriating part is that the government has little impact on next year’s economic growth, but the structural weaknesses — taxation, deficits, trade, energy dependence, education — are entirely the result of bad political decisions.
they had their impact in 01,02,03,04 and this year. nothing anyone can do now but sit back and fudge the numbers to make the economy look better than it is.
Posted 28 Dec 2005 at 2:10 pm ¶
Adam from PDX wrote:
Somehow I don’t think “fudging” will be a significant problem for anyone associated with this corrupt, scandalous, morally decimated regime.
Posted 29 Dec 2005 at 8:40 am ¶