Thursday, February 16, 2006
What is the Inverse Yield Curve all about?
You may have been hearing a lot about the United State's current inverse yield curve on U.S dollar deposit interest rates. In essence, interest rates are higher on short term deposits than on long term deposits. Of course, this goes against conventional wisdom. The longer your money is "tied up" the more you should be rewarded for, right? In the past this situation suggested an economic recession (or slowdown) was upcomming. The link below explains the situation very well and should be read by anyone who is curious. Enjoy!
http://217.145.4.56/ind/news.asp?newsitemid=27098
http://217.145.4.56/ind/news.asp?newsitemid=27098
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the indexes easily.
Take a look at Wallstreetwinnersonline.com
RickJ
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