Why Investors Are Obsessed With the Inverted Basic Income: The Free Money 1 day ago   04:28

Wall Street Journal
Amid a shaky marketplace, investors are eyeing the yield curve for signs of economic stability. History shows that when the yield curve inverts, a recession may soon follow. Photo Composite: Stephanie Swart for The Wall Street Journal.

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Comments 138 Comments

Jay M
Printing money by government steal values from existing money.
That is why the original dollar is now worth ~3 cents.
John
If you have access to a Bloomberg Terminal through your work or university there is a great in-depth explanation of yield curves in the fixed incomes segment of the Bloomberg Market Concepts tutorial
K SC
BOUROWING
Dave is just Saying
The 3 month just inverted on the 5 year, thought's?
Rubens
Wow, great and simple explanation. People always forget demand also play a role in the yield curve, not only monetary policy
Omar Chammaa
So when the economy is healthy, investors don't want to lend the government money on the long term and they're more interested in stocks. This lowers the demand for bonds, and in order for the government to make its bonds more desirable it raises the interest rate so people would buy them. Did I get that right?
Mbonea Mjema
When you talk about the yeild curve you need to know who is borrowing who.... it's investors (people) giving money to the government and not the reverse....so change that WSJ
Lakshay Singhal
I just want to say, Thanks
RichHomie
if the rates rise for short term why not switch your plan from long term to short?
Saumitra Chakravarty
It seems at least partly like a self-fulfilling prophecy.
kunal duran
Which software is used to make these kind of videos?
karlinchina
Good, clear video, but I wish you would stop saying investors "pull money out of this asset class and pour money into another asset class". This makes it sound like a market can just keep inflating because more money is "poured" into it. In fact, for every buyer there is a seller; all the money that's poured in gets poured out in the same amount. It would be more accurate to talk about demand for an asset falling or rising.
Jared M
What are we doing to upset the economy?
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salami boy
burrowing
Kevin Liang
Self-fulfilling prophecy
Jeremiah Lim
Haven't you seen?? Australia stock index futures, it is forming a head @6300 and shoulder @6030 and it is breaking for big fall and heading towards 4600.
Desiderata
The indicator anyone?
tn
bowering?
林浩澄
so that means if i buy 100 dollars bond , i will receive only 2 dollars interest after two years . The interest and profit are so low , how does American government attract people from all over the world buying American bond ?nonsense

can anyone explain ? I am just a high school student , but i want to know more about finance
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Basic Income: The Free Money Why Investors Are Obsessed With the Inverted 1 day ago   14:32

Mark Zuckerberg, Elon Musk, Richard Branson and other tech titans are promoting the idea of universal basic income, as a way to help citizens weather job disruptions caused by emerging technologies. Canada is giving it a try, with a pilot program that gives participants up to $17,000 annually for three years — no strings attached. WSJ’s Jason Bellini checks in on this free money experiment. Image: Ryno Eksteen and Adele Morgan

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