Inverted Yield Curve

Discussion in 'Economics' started by myminitrading, Jun 27, 2006.

  1. Inverting again,
  2. kowboy


    Thanks for the post. I may be the only one that thinks this is convoluted logic, to have an inverted curve under the present economic circumstances. Obviously the market does not agree with my thinking, hence the inverted yield curve. For example, M3 has been a multiple of CPI for the past number of years. Fed speak would have you believe that inflation is modest and under control, while at the same time they only give lip service to actually controlling inflation. I believe given the choice of controlling inflation or the alternative of risking slowing the economy, the Fed will always choose higher inflation numbers.

    Has the Fed done that good of a job convincing the market that inflation will be under control that we have this yield curve?

    Any explanations to correct my understanding of the situation would be appreciated?


  3. I have alot I would like to say but my typing skills are poor and I dont feel making the effort right now.

    I will say this, things that use to work determine market direction are being distorted by government intervention.