Here is the summary from the GP.
>[An inverted yield curve] often indicates that investors think a recession is around the corner. The reason is that investors are betting that the prevailing interest rates will drop. If interest rates drop, then future bond purchases may have much lower interest rates than those bought today. It turns out you might like the idea of getting 2% interest for 10 years rather than 2.13% for 5 years and then 0.5% for the next 5 years.
He didn't address what it means for the economy. What happened last time the yield curve inverted? The last 10 times? The headline implies recession by referencing 2007, is there a valid statistical correlation?
Where is that rule written? Where did those particular numbers come from?
> He didn't address what it means for the economy. What happened last time the yield curve inverted? The last 10 times? The headline implies recession by referencing 2007, is there a valid statistical correlation?
You want the answer trimmed down to 3 or 4 sentences, but you also want answers to multiple new questions. Which one would you rather have?
This was not simple, nor did you explain what this means