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Recession indicator flashes red for first time since 2005

Posted on 8/14/19 at 6:08 am
Posted by Desert King
Member since Oct 2018
1936 posts
Posted on 8/14/19 at 6:08 am
On Wednesday, the yield on the 10-year U.S. Treasury bond dipped below the yield on the 2-year U.S. Treasury as the 10-year fell 1 basis point below the 2-year. The yield curve inversion has a strong track record of predicting a recession; each of the last seven recessions (dating back to 1969) were preceded by the 10-year falling below the 2-year.

Ahead of the last recession, the yield curve inverted briefly as early as December 27, 2005, about two years before the financial crisis sent the economy into recession.
Posted by Meauxjeaux
98836 posts including my alters
Member since Jun 2005
39961 posts
Posted on 8/14/19 at 6:14 am to
quote:

two years


So we’ll get a little dip right after the second inauguration and be pulling out well in advance of Trump! 2.0 in 2024.

I’ll allow it gif.
This post was edited on 8/14/19 at 6:15 am
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
67950 posts
Posted on 8/14/19 at 6:14 am to
why the hell wasn't it flashing in 2008?
Posted by iron banks
Destrehan
Member since Jul 2014
3753 posts
Posted on 8/14/19 at 6:15 am to
Orange man bad Did I do it right.
Posted by Mid Iowa Tiger
Undisclosed Secure Location
Member since Feb 2008
18667 posts
Posted on 8/14/19 at 6:17 am to
quote:

about two years before the financial crisis sent the economy into recession.



That recession had to do with lending fundamentals or actually lack there of more than macroeconomic conditions.
Posted by gthog61
Irving, TX
Member since Nov 2009
71001 posts
Posted on 8/14/19 at 6:20 am to
quote:

The yield curve inversion has a strong track record of predicting a recession; each of the last seven recessions (dating back to 1969) were preceded by the 10-year falling below the 2-year.


How many times was it a false signal?

seems like an important fact to leave out
Posted by TaderSalad
mudbug territory
Member since Jul 2014
24656 posts
Posted on 8/14/19 at 6:21 am to
fear mongering at it's best.


nothing else has stuck... let's tank the economy cuz orange man bad.
Posted by udtiger
Over your left shoulder
Member since Nov 2006
98847 posts
Posted on 8/14/19 at 6:21 am to
Wishcasting
Posted by TigerDeBaiter
Member since Dec 2010
10266 posts
Posted on 8/14/19 at 7:03 am to
Posted by TigerB8
End Communism
Member since Oct 2003
9312 posts
Posted on 8/14/19 at 7:06 am to
Im old enough to remember 2007/2008/2009!
Posted by BestBanker
Member since Nov 2011
17478 posts
Posted on 8/14/19 at 7:06 am to
Tell us the story of what happened after the recessions? Tell us! Tell us! Pleaz! Pleaz!
Posted by dstone12
Texan
Member since Jan 2007
30297 posts
Posted on 8/14/19 at 7:09 am to
Due to uniparty obstruction or fake investigations that have eroded trust in the government? That will, in fact ruin an economy.

Maher wants this.
Prog filth wants it.
Uniparty wants it.

“It” is getting trump out at all costs.
Posted by saints5021
Louisiana
Member since Jul 2010
17483 posts
Posted on 8/14/19 at 7:55 am to
2 years is after Orange Man is re elected...sorry libs, you still won't get him.
Posted by Desert King
Member since Oct 2018
1936 posts
Posted on 8/14/19 at 8:09 am to
Jesus Christ.

Some of you are so defensive of Trump that it’s like a personal insult on your mother if anything less than Polly-fricking-anna is posted.

News flash: A possible recession would have very little to do with Donald Trump. We’ve been kicking this can down the road long before he showed up. The yield inversion news is concerning, so I posted it. That’s it. Get a grip!
Posted by TimeOutdoors
AK
Member since Sep 2014
12123 posts
Posted on 8/14/19 at 8:14 am to
It was inverted for maybe 30 minutes, lol. Financially illiterate people truly have no hope in today’s society.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/14/19 at 8:19 am to
quote:

It was inverted for maybe 30 minutes,


I didn't think it was that long. Do y'all know the average time from inversion to recession, 22 months since the 1978. This is noise.

quote:

Data from Credit Suisse going back to 1978 shows:

The last five 2-10 inversions have eventually led to recessions.

A recession occurs, on average, 22 months following a 2-10 inversion.

The S&P 500 is up, on average, 12% one year after a 2-10 inversion.

It’s not until about 18 months after an inversion when the stock market usually turns and posts negative returns.


Food for thought
This post was edited on 8/14/19 at 8:25 am
Posted by Northwestern tiger
Long Island NY
Member since Oct 2005
23485 posts
Posted on 8/14/19 at 8:21 am to
quote:

How many times was it a false signal?

seems like an important fact to leave out



Only ONCE, it was a false flag

I read it somewhere this morning .
Posted by Desert King
Member since Oct 2018
1936 posts
Posted on 8/14/19 at 8:26 am to
quote:

Financially illiterate people truly have no hope in today’s society


Lol. Yeah, I have a $2M portfolio in my early 40s. I think my financial literacy is fine, thanks.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/14/19 at 8:27 am to
quote:

I have a $2M portfolio in my early 40s


All that work to post this.
Posted by Auslander
Chasing the Sun
Member since Jun 2019
313 posts
Posted on 8/14/19 at 8:36 am to
fricking love it; that means RE is about to tank and it's gonna be a buyer's paradise.

Can usually get multifamly buildings on the cheap bc of competition and Class B/C being outweighed by new units in the market.

It'll suck for single family homes since there will be more competition, but hey can't have an omelette w/o breaking a few eggs


When there's blood in the streets, buy Real Estate
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