Recession fears are flaring as Trump's trade war has markets behaving in a way... [View all]

[yallerdawg]

not seen since the financial crisis


Remember, fellow D's, "R stands for Recession" - historical fact. Do your due diligence.


Source: Business Insider, by Joe Ciolli

The metric in question is the spread between two- and 10-year Treasury yields, which has fallen to its lowest level since 2007 — the period immediately preceding the most recent financial crisis.

While short-term interest rates are almost always lower than their long-term counterparts, the difference between the two tends to tighten when investors are paying more for near-term protection. That flight to safety would seem to match the spike in investor nervousness seen as trade-war fears have escalated.

This dynamic is reflected in the chart above, which shows the so-called yield curve is not only flattening but nearing negative territory. If the two-year were to start yielding more than the 10-year — a rare occurrence known as inversion — it would signal that a recession is near, according to historical precedent.

More at: http://www.businessinsider.com/trade-war-could-cause-next-recession-fears-not-seen-since-financial-crisis-2018-6


Memorable moments of last R's watch in 2007-2008.




Remember that big tax break the R's gave us? The Dow does.