Overview of the chart
- There was no issue of bonds with a maturity of 30 years in the interval marked in yellow.
- The 10-year to 3-month inversion is 64 basis points, the deepest since January 2001.
- The 30-year to 3-month inversion is 57 basis points, the deepest since November 2000.
- The reversal from 10 years to 2 years is 71 basis points, the steepest since October 1981 (see chart below).
10 years minus 2 years Treasury Yield
Never before have we seen such strong inversions, except just before or during recessions.
This time it will be no different. A recession is coming, assuming it hasn’t started yet.
Existing home sales fall in 9th month, another 5.9 percent lower
On Nov. 18, I commented on the drop in existing home sales in the 9th month, down another 5.9 percent
Existing home sales crash
- Existing home sales are down 28.4% from a year ago.
- Existing home sales are down 31.7% since January.
That’s a crash. And we’ve never seen declines like this before, except in recessions.
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California faces a $25 billion budget problem with persistent deficits
Keep in mind that California is spending money as if the tech boom would last forever. Prior to the recession, California faces a $25 billion budget problem with persistent deficits
Governor Newsom is unofficially running for president in 2024. It will be official the day President Joe Biden announces he will not be running for re-election.
If the Democrats had kept the House, the free money bailouts for California, Illinois, New York, New Jersey, etc. would have been huge.
Massive layoffs, including thousands at Amazon and FedEx during peak shipping season
Finally, keep an eye out for massive layoffs, including thousands at Amazon and FedEx during shipping peak season
Amazon, Facebook, Redfin, FedEx, Stripe, Twitter and tech companies in general are all laying off employees.
Not to worry, Biden says there is no recession and the economy is strong. Not only is it different this time, it’s very different this time.
This post is from MishTalk.Com.
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