Another decade of corporate Shock Doctrine has blinded Wall Street and policy-makers to the risks of late cycle "policy error", which is taking place in real-time. The Fed's flattening yield curve is pounding the global economy, banks, commodities, and yield stocks all at the same time. Fortunately, Netflix is providing a final safe haven. Today's capitalist bailout queens are ignoring markets. That will be their undoing.
"...The economy especially in the US was about to finally live up to the unemployment rate, the hysterics claimed, which meant an explosion in wages therefore inflation, and finally Jerome Powell's confidence to go faster and farther with the federal funds rate. All these things were to produce an epic, biblical BOND ROUT!!!!"
"The flattening of the yield curve was a loud if partial rejection of that thesis. This was ignored partly because of blatantly dishonest economic commentary and partly plain economic illiteracy. And when it comes to financial curves, the dearth of understanding them is near total."
"More free money!!!"
What used to be considered a recession is now the best con job 100% borrowed money can buy:
"Then the economy retired"
Putting it all together, those who are saying that the yield curve can be ignored indefinitely, are ignoring what banks are saying. The last time the yield curve inverted, banks continued to rise, however this time banks have already rolled over prior to outright inversion: