“I think this has to be put into perspective. We had a huge, huge rally for a long time in the bond market. We are talking about how 10-year yields have fallen from 5.4 percent in March to oh-my-goodness-I-can't-believe-this 3.6 percent.”
“In 2000 we inverted as much as 47 basis points. Could that happen again? Sure, as it'll take the clear signal of a rate cut before the two-year yield starts moving down.”
“A slowdown is baked in the cake, ... A big part of economic growth has been driven by consumer home-equity loans and if home prices are subdued, you won't have more loans driving spending.”
“A lot of people are afraid that increases in the PPI will eventually spill over to the CPI but it's important to put things into perspective. The majority of the average cost of goods is from labor and wages are still under pressure,”
“If the yield curve inverts, that is bad because banks will not lend money at rates lower than their borrowing costs. It's as simple as that and the economy will slow down naturally,”
“A slowdown is baked in the cake. A big part of economic growth has been driven by consumer home-equity loans and if home prices are subdued, you won't have more loans driving spending.”
