When you get a really large inversion like that, it’s the bond market screaming to the world that major recession is brewing. Short term borrowing rates are significantly higher than long term 30 year rates…A very difficult thing for businesses that aren’t profitable to navigate because if they try to roll their debt with less or equal interest expense, they can’t do it by taking out a shorter duration instrument.
Discussion
Thank you, Preston 🤙
#[1]
Feels like they can keep this charade going for much longer than we expected. How much longer until this entire house of cards goes FUBAR?
Wen no bid?
I run a own a small business in 🦘so I’m always wanting to learn more about the
financial markets to be prepared with info as best I can. Thanks Preston for your educational podcasts! I listen to both of traditional and the bitcoin both I find extremely helpful. 🤙
Thanks for listening and for the very kind message, Ben!
Why are bond normies so dumb? I’ll explain on the next episode of Allegories of the Plebs!