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re: Recession indicator flashes red for first time since 2005

Posted on 8/14/19 at 10:14 am to
Posted by LSUBanker
Gonzales, La
Member since Sep 2003
2552 posts
Posted on 8/14/19 at 10:14 am to
quote:

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


That's true to a certain degree, but the real estate market is not the bubble to burst this time and won't be as wide spread as 2008. It's corporate debt levels. I see a lot of defaults on extended credit coming within a few years.
Posted by GRTiger
On a roof eating alligator pie
Member since Dec 2008
62850 posts
Posted on 8/14/19 at 10:29 am to
Can you discuss the impact of an inversion as an indicator to recession as determined by 10 year treasury yields? In other words, is it more ominous when the inversion occurs when yields are high?

I read that the last several inversions occurred when 10 year treasury yields were over 6% on average. At this point, they are closer to 2%. Just curious if that makes a difference.
Posted by QboveTopSecret
America
Member since Feb 2018
3237 posts
Posted on 8/14/19 at 10:32 am to




Trump Election = Rothchild Recession
Posted by udtiger
Over your left shoulder
Member since Nov 2006
98480 posts
Posted on 8/14/19 at 10:45 am to
bullshite.

there was an inverted yield curve earlier this summer.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 8/14/19 at 11:25 am to
quote:

There was nothing leading about that.
Do you mean except for the recession ending about 3 months later??
Posted by deltaland
Member since Mar 2011
90500 posts
Posted on 8/14/19 at 12:07 pm to
Dow down 750 now. This is bad. Real bad. We could be staring down the barrel of a 2008 level crash beginning
Posted by Big Scrub TX
Member since Dec 2013
33350 posts
Posted on 8/14/19 at 12:25 pm to
quote:

fricking love it; that means RE is about to tank and it's gonna be a buyer's paradise.
Good luck with all that given where rates are presently.

quote:

Can usually get multifamly buildings on the cheap bc of competition and Class B/C being outweighed by new units in the market.
Posted by Big Scrub TX
Member since Dec 2013
33350 posts
Posted on 8/14/19 at 12:28 pm to
quote:

It's corporate debt levels
Nah. Don't fall for Yellen's bullshite on this. Maybe some pain in HY and maybe some ratings migration from IG to Xover.
Posted by The Pirate King
Pangu
Member since May 2014
57616 posts
Posted on 8/14/19 at 12:49 pm to
quote:

Dow down 750 now. This is bad. Real bad. We could be staring down the barrel of a 2008 level crash beginning


Lol
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 8/14/19 at 1:25 pm to
quote:

Dow down 750 now. This is bad. Real bad. We could be staring down the barrel of a 2008 level crash beginning


Posted by TejasHorn
High Plains Driftin'
Member since Mar 2007
10892 posts
Posted on 8/14/19 at 1:26 pm to
Even a recession will be fake news around here.

You can't drag a trade war out and expect no repercussions. It's not "winning" to try and tank other countries' economies. We're all in the same boat, economically these days.
This post was edited on 8/14/19 at 1:28 pm
Posted by zeebo
Hammond
Member since Jan 2008
5193 posts
Posted on 8/14/19 at 1:32 pm to
Means nothing
Posted by CharlesLSU
Member since Jan 2007
31886 posts
Posted on 8/14/19 at 2:31 pm to
Yeah but this goes against the winning narrative so downvotes for you!

All the winning!
Posted by CharlesLSU
Member since Jan 2007
31886 posts
Posted on 8/14/19 at 2:32 pm to
But the minions don’t like hearing reality....downvote to you!!!!
Posted by Scruffy
Kansas City
Member since Jul 2011
72025 posts
Posted on 8/14/19 at 2:33 pm to
quote:

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.
How often does it fall with no recession occurring?
Posted by cajuncarguy
On the road...Again!
Member since Jun 2013
3135 posts
Posted on 8/14/19 at 2:35 pm to
False. Money flowing in from Europe and Asia because of negative interest rates there. Flight to safety. They are buying Treasuries, especially 10 yr bonds, thus driving the price up and yields down. The economy and the fundamentals are a lot stronger than previous times and the underlying causes are completely different. A great buying opportunity.
Posted by The Pirate King
Pangu
Member since May 2014
57616 posts
Posted on 8/14/19 at 2:39 pm to
quote:

Even a recession will be fake news around here.


We’re not in a recession yet, and thanks to the fear mongering by the people writing these articles, the tools on Wall Street have tanked the market today.

Congrats
Posted by AlceeFortier
Member since Dec 2016
1795 posts
Posted on 8/14/19 at 2:39 pm to
orange man as dangerous as aoc, bernie and warren. plus, he is bigger liar.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 8/14/19 at 2:42 pm to
quote:


orange man as dangerous as aoc, bernie and warren. plus, he is bigger liar.


What a well thought out and lucid point. I am glad you folks finally woke up and came join us.
This post was edited on 8/14/19 at 2:43 pm
Posted by yatesdog38
in your head rent free
Member since Sep 2013
12737 posts
Posted on 8/14/19 at 2:43 pm to
Consumer debt is high, student loan debt is at all time high and corporate buybacks are inflating EPS.

as a whole fundamentals are still pretty strong but tread lightly. 3rd quarter projections aren't great... buy buy buy! always buy. don't stop buyliving
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