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re: Recession indicator flashes red for first time since 2005

Posted on 8/14/19 at 8:36 am to
Posted by trinidadtiger
Member since Jun 2017
13379 posts
Posted on 8/14/19 at 8:36 am to
Inverted yield curve has forecast most recessions since the 70s. You know what has NEVER happened since the 70s, NEGATIVE interest rates in major industrialized countries. Ya think just maybe this might have some impact on yields in the overall bond markets. We also have far more cash free flowing than any point in history by far.
Posted by BobBoucher
Member since Jan 2008
16740 posts
Posted on 8/14/19 at 8:43 am to
quote:

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.


And what drives the yield? Is not not demand?

Isn’t this kinda like the Vegas line moving prior to the big game due to betting activity?

If not - I digress and disregard.

If so - just like Vegas - people are taking their best guess at what’s going to happen based on Trumps trade war. They have never seen this before and have no fricking idea.
This post was edited on 8/14/19 at 8:45 am
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/14/19 at 8:58 am to
quote:


And what drives the yield? Is not not demand?


Yes

quote:

Isn’t this kinda like the Vegas line moving prior to the big game due to betting activity?


So, a 20 minute inversion is gonna cause a huge recession? I just think at this point it is not a big deal. According to the stats I linked that is the case.

quote:

people are taking their best guess at what’s going to happen based on Trumps trade war.


I think it is more about slowing global growth than a trade war. Just my opinion.
Posted by The Pirate King
Pangu
Member since May 2014
57686 posts
Posted on 8/14/19 at 9:02 am to
Thanks to the dumbass fear mongering about a coming recession, the Dow tanked 400 points this morning.

Dems get their wishes
Posted by BuckyCheese
Member since Jan 2015
49288 posts
Posted on 8/14/19 at 9:05 am to
The market is so reactionary it's ridiculous.

fricking day traders.
Posted by BBONDS25
Member since Mar 2008
48324 posts
Posted on 8/14/19 at 9:13 am to
quote:

Lol. Yeah, I have a $2M portfolio in my early 40s. I think my financial literacy is fine, thanks.


you need about 6 more to retire. You are behind. Get more financially literate, or enjoy the next 20 years working.
Posted by Zach
Gizmonic Institute
Member since May 2005
112475 posts
Posted on 8/14/19 at 9:20 am to
Thanks for the heads up. I'm gonna sell all my stocks and buy gold. Then I'm gonna call that Mormon company and buy a year's worth of food.
Posted by link
Member since Feb 2009
19867 posts
Posted on 8/14/19 at 9:23 am to
quote:

Lol. Yeah, I have a $2M portfolio in my early 40s. I think my financial literacy is fine, thanks.



LOLOL sh-sh-should the guy in the $4500 suit take advice from the guy in the $200 suit COME ON
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 8/14/19 at 9:25 am to
quote:

the yield curve inverted briefly as early as December 27, 2005, about two years before the financial crisis sent the economy into recession.
So the yield curve knew all about those fraudulent housing loans in our economy two years before anyone else did?

That's amazing!!
Posted by Boatshoes
Member since Dec 2017
6775 posts
Posted on 8/14/19 at 9:25 am to
All of you who are complacent about 2020...a recession plus the banning of private firearms sales through expanded background checks plus red flag laws plus a possible semi auto / high cap mag ban if the turtle gives the Dems what they want.

Still feeling complacent?
Posted by stout
Smoking Crack with Hunter Biden
Member since Sep 2006
167258 posts
Posted on 8/14/19 at 9:26 am to
quote:

We’ve been kicking this can down the road long before he showed up.


Yep. We have kept rates artificially low for too long.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
123915 posts
Posted on 8/14/19 at 9:27 am to
quote:

you need about 6 more to retire. You are behind.
But he can make it up quickly on the recession call. Just needs to grab some triple-leveraged inverse/short ETFs in a hurry, before the recession hits.
Posted by yatesdog38
in your head rent free
Member since Sep 2013
12737 posts
Posted on 8/14/19 at 9:30 am to
bond markets are typically leading indicators. Equity markets typically lagging.
Posted by bmy
Nashville
Member since Oct 2007
48203 posts
Posted on 8/14/19 at 9:32 am to
quote:

Due to uniparty obstruction or fake investigations that have eroded trust in the government? That will, in fact ruin an economy.



Build that narrative

We are due.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/14/19 at 9:33 am to
and?
Posted by Jjdoc
Cali
Member since Mar 2016
53472 posts
Posted on 8/14/19 at 9:34 am to
Recessions happen often
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 8/14/19 at 9:40 am to
quote:

bond markets are typically leading indicators.
True.
quote:

Equity markets typically lagging.


Not so much.

The low point in the U.S. stock market during the Great Recession was in early March, 2009. March 6, to be exact.

The recession was in full swing then. The stock market started going up after that in anticipation of the recession ending later in 2009, which it did.
Posted by AlexLSU
Member since Jan 2005
25341 posts
Posted on 8/14/19 at 9:44 am to
quote:

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


Could be a good reason for people to hang onto their SFH and rent it out. I feel like only savvy RE investors actually scoop up deals during recessions. If average joes don’t buy RE during good economic times, I think it’s unlikely they do so when the market is shaky. Overall I’d imagine the buyer pool shrinks and the renter pool increases while people wait out the dip/recession
Posted by Roll Tide Ravens
Birmingham, AL
Member since Nov 2015
42433 posts
Posted on 8/14/19 at 9:58 am to
If a Democrat wins and we start forcing loans to sub-prime borrowers, we probably will have a recession.
Posted by yatesdog38
in your head rent free
Member since Sep 2013
12737 posts
Posted on 8/14/19 at 10:09 am to
it started going up after it had been flooded with free money and the banks had been bailed out and the announcement of BABs. That isn't a fair comparison at all. There was nothing leading about that.
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