The last five times two year Treasuries dropped below 10 Year Treasury Yields, we entered into a recession at some point time. This is known as an "inversion."
Will this affect the 2020 elections? We don't know. You should be aware of the fact that the 2008 Collapse was preceded by an inversion in 2007, more than a year before the 2008 September Collapse. Excluding September of 2008, most of the remaining inversion events saw minor recesionary periods. In fact, 1966 to 1982, the Yield Curve was inverted 37% of the time and in everyone of those years, bank earnings went up (the very opposite of a recession).
Most financiers on Fox Business believe today's Market Event (down 600/700 points) still fall within a "normal cycle." Understand that Big Banking is very strong in spite of short term problems.
Let's not panic. International Trade does not fund our banking industry. Rather, bank funding is "domestic" in nature (10 trillion dollar in existing loan dollars).
My information comes from Fox Business , btw.
Update: Jim Acosta told CNN viewers that these inversion events are dependable predictors of coming reeceission. Of course, we know that when a recession follows an inversion event, there is a time-lapse of months, even years, before a looming recession strikes. Secondly, if a recession is not the result of a housing collapse (as per 2008), there is good reason to believe that that recession will not be a serious/crippling event. Third, there are many inversion events that do not end in recession. Julia Chatterley, a CNN reporter and colleague of Acosta's, told her morning audience on MSNBC, Wednesday, that inversion events do not always end in recession. She knows this . . . . Jim Acosta does not.
Again, the partisan/globalist Left and people like Jim Acosta, will push this idea of an immediate recession until it happens . . . . with the hope of defeating Trump in that event.
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