Comments on: Fed Delivers Steep Yield Curve: A Bull’s Best Friend

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Mon, 05 May 2008 11:13:47 +0000

[…] Fed Delivers Steep Yield Curve: A Bull’s Best Friend - tradersnarrative […]

by: Babak

Mon, 05 May 2008 01:59:55 +0000

Jagmohan,
yes both fiscal and monetary policy are loose right now. Although I doubt the stimulus check will do anything remotely as significant as what Bernanke has done.

by: Babak

Mon, 05 May 2008 01:58:46 +0000

Dan,
they don’t call him helicopter Ben for nothin’

Derrick,
I’ll have to double check but I doubt we had a steep yield curve during late 2001, it looks more like a “normal” curve. Find out the diff between the 90 day T-bill and the 20 and 10 year notes. Were they above the historical averages? Doesn’t look like it to me but I’m just eyeballing it.

by: jagmohan Swain

Sat, 03 May 2008 18:13:41 +0000

Jobs number continues to paint the same picture.Lay offs happen in a big scale when recessions are not widely anticipated and business managers widely overshoot the business cycle peak by bumping their production and hence piling up on inventory.4 months into recession lay offs continue to be muted because of limited scope in production cut since inventories are lean and employment lacks the flab they usually have at prior business cycle peak.We are as far as production and employment situation goes are at that phase of business cycle that resembles a trough in business cycle not peak.Nice to have a steep yield curve manufactured by Fed cut supporting this backdrop and also the stimulus checks.

by: Derrick

Sat, 03 May 2008 13:32:23 +0000

During Nov - Dec 2001, we do have a steep yield curve, however the mkt stilll continue to plunge afterwards, but is an interesting observation.

by: Dan

Sat, 03 May 2008 13:01:46 +0000

….OR….

The engine is broke, but the operator foolishly thought the sputtering was the result of poor gasoline infusion, so the operator responded was stomping on the gas pedal with unprecedented furosity.

Just like the amateur driver, after the stomp there is the realization: Not only were the stomps ineffective, they were beyond counterproductive. The sputtering was already occuring because the system had too much fuel, and the operator responded by adding more of the same.

Your post resembles the foolish driver. “OK, all we need is some morfe gas!” [stomp on accelerator…stomp some more….and some more)….”That should do it. Just wait ’till all this fuel hits…Oh man, this baby’s going to take off like a rocket!”

After 10 more acronym laden stomps, maybe…just maybe….there’ll be some realization….you’ll breathe all the fumes and emerge from the vehicle stinking of petrol in a cloud like Pigpen, and you’ll say, “hmmm…I guess it didn’t need more gas. I wonder where the choke is?”

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Fri, 02 May 2008 17:56:27 +0000

[…] The yield curve has steepened. (Trader’s Narrative) […]