Wednesday, January 17, 2024

A repeat of the 2008 Great Financial crisis? Danielle DiMartino Booth, former FED advisor, author of FED UP (2017)

  The FED interest rate inversions are insane! I have a 5 year Certificate of Deposit that would have automatically renewed another 5 years at an interest rate of only .27% - not even half a percent interest and I bought it at 2.7% interest in 2019. The current 9 month C.D. interest rate is 5.05%

So normally the long term interest rate is higher than short term.
An inverted yield curve occurs when longer-term bond yields are below those of short-term bonds.
  Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management. “However, the recent steep decline in 10-year Treasury yields shows that the bond market is projecting more rate cuts than Fed officials currently indicate.”
Two Year Notes interest rates have Rallied since investors think the FED is going to cut rates....
it reflects the market’s expectation that a contracting economy will induce the Federal Reserve to lower its policy rate.
the empirical results we have described in this article do not imply that a yield-curve inversion causes a recession.
The Predictive Power of the Yield Spread
"if george is having someone blow his snow and gets venmoed more than a few hundred dollars a year, you HAVE to have an Employee Identification Number..."
hahahahahahhaa.
  great points only George Gammon points out the banks are bankrupt - since their previous low yielding bonds now are worthless. SO...the MARKET yield inversion is based on assuming the FED HAS to cut rates -... the banks know something we don't know... the debt deflation is coming home to roast. I'm going to Professor Michael E. Hudson to see what he says.

Danielle DiMartino (formerly of the FED)

says a 40% "correction" in the equity credit market as a 2008 repeat!!
DANIELLE DIMARTINO BOOTH is a financial expert and commentator on economic trends. After working as a financial columnist at the Dallas Morning News, DiMartino Booth spent nine years (2006 – 2015) as an advisor to Richard W. Fisher at the Federal Reserve Bank of Dallas

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