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Mish over on goldseek the other day Gary Tanashian says and shows on the fifth chart down that a flatter yield curve is typical of a boom just the opposite of what you and everybody else say about the flattening yield curve signals lessening liquidity and slowing growth possibly leading to a recession. I’ve tried and failed to get u the link ~the big macro play ahead. I just wondered what u would have to say about this

What happens at the end of a boom? A recession?

Mish I know you are having fun with this , but I think you miss the point. His point is the yield curve declines during a boom, which he shows on his chart. So if that’s right, as growth slows and a recession begins, the yield curve would steepen. I can hardly wait for the recession to begin so I can watch those long term interest rates shoot up!

How can one believe Treasury Yields will not fall when the market or economy stumbles. IMO "Fear" is the strongest emotion. What's the crowd's perceived "safest asset" ?