Earlier today, the yield on long term Treasury notes was lower than that on short term Treasury notes, creating an “inverted yield curve.” This is a fairly popular economic indicator, and just about every time this has happened in the last thirty years, the U.S. economy headed into a recession.
It’s likely not a cause-effect relationship; usually there are other factors to could cause both the inverted curve and the recession, but the two situations are tightly linked. Most economists seem to think that this time we’re not headed for a recession.
If we do enter a recession, we could always unload our huge properties for spending cash… Then again, I don’t see that happening.
Updated February 7, 2012 and originally published December 27, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.