Mish over on goldseek the other day Gary Tanashian says and shows on the fifth chart down that a flatter yield curve is typical of a boom just the opposite of what you and everybody else say about the flattening yield curve signals lessening liquidity and slowing growth possibly leading to a recession. I’ve tried and failed to get u the link ~the big macro play ahead. I just wondered what u would have to say about this

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Staaycalm
Staaycalm

How can one believe Treasury Yields will not fall when the market or economy stumbles. IMO "Fear" is the strongest emotion. What's the crowd's perceived "safest asset" ?

truthseeker
truthseeker

Mish I know you are having fun with this , but I think you miss the point. His point is the yield curve declines during a boom, which he shows on his chart. So if that’s right, as growth slows and a recession begins, the yield curve would steepen. I can hardly wait for the recession to begin so I can watch those long term interest rates shoot up!

Mike Mish Shedlock
Mike Mish Shedlock

Editor

What happens at the end of a boom? A recession?