Flattening Yield Curve

The Flattening yield curve is an environment where the difference between long-term and short-term interest rates narrows.

In a market based economy a narrowing curve usually indicates rising short-term interest rates and this tends to slow the economy.

In a Fed manipulated economic environment, an environment where the Fed is committed to keeping short-term rates low, the current flattening of the yield  curve through declining long-term rates must be an indication that declining consumption patterns are pulling us into a recession.

Exciting build into the full moon last night, now we will see the effects of the crest.