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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (293888)	7/8/2006 7:16:47 PM
From: Road Walker	Respond to of 1583741

re: The yield curve inversion has become a less reliable indicator of recession since the early 1990s. I think it inverted twice in the '90s, the second time well before the 2001 recession. Rising interest rates were more of a concern when rate hikes started at 8% and end up at 12%. However, this hike start at 1% I think and looks likely to end here or a quarter of a point higher........around 6. At 6%, industry can still make money. The 90's expansion was the longest in history, so kind of freaky, not business as usual. The inverted yield curve has been a very good predictor, if it missed once in the freaky 90's, then I wouldn't disregard it. re: "Don't fight the Fed". ********************************* I am not sure what you mean with this statement. An old Wall Street saw. "Don't fight the Fed" means when they are raising rates, get the F out of the markets. The Fed will beat you every time... no matter how smart you think you are. "Don't fight the Fed".