"The problem with using the inversion and the historical record is that the yield curve at present is not a referendum on the path of economic growth in the United States, but rather a function of goings on globally," Mr Porcelli said.
Markets are being buoyed by bad news. Why? Because it means they're in line for some more rate cut sugar hits from central bankers. "Historically, loan growth has slowed as the yield curve flattens. But with banks loosening lending standards there has been an acceleration in commercial and industrial lending," Mr Minack said.So what about the sudden flight from risk and global dumping of equities? Mr Minack argues it may be overdone.
At least if the U.S economy tanks, Australia will be fine right? It's not like Australia's leveraged to the hilt or anything right?