{"id":701,"date":"2006-01-01T03:20:00","date_gmt":"2006-01-01T03:20:00","guid":{"rendered":"http:\/\/maddruid.com\/wp\/?p=701"},"modified":"2006-10-09T16:54:30","modified_gmt":"2006-10-09T08:54:30","slug":"699-of-looming-economic-recession","status":"publish","type":"post","link":"https:\/\/maddruid.com\/?p=701","title":{"rendered":"[699] Of looming economic recession?"},"content":{"rendered":"<p>Yield curve is currently <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=10000087&#038;sid=aW7VBmPp2Mxg&#038;refer=top_world_news\">a hot topic<\/a> in the United States. At least, in the economic circles <a rel=\"tag\" href=\"http:\/\/technorati.com\/tag\/economics\">(tag)<\/a>. Why is it so hot?<\/p>\n<p>Well, yield curve is a locus of points of interest rate for bonds of different maturities and right now, it&#8217;s inverted. Inverted yield curve means expected future short term interest rates are falling. At the same time, inverted yield curve usually precedes a recession.<\/p>\n<p>Earlier in December 2005, the Federal Reserve raised the US interest rate. While at it, the all-powerful Alan Greenspan for the first time in many months, abandoned the word &#8220;accommodating&#8221; from his vocabulary. Many see that as a hint that the US market has reached its peak.<\/p>\n<p>Greenspan however has dismissed the talk of upcoming recession. <a href=\"http:\/\/news.ft.com\/cms\/s\/d40f8c5c-794c-11da-8d99-0000779e2340.html\">He and a few others don&#8217;t<\/a> believe that an inverted yield curve is a signal of a downturn. I hope he&#8217;s right.<\/p>\n<p>If he&#8217;s wrong, given that the US is Malaysia&#8217;s largest trading partner, Malaysian export might suffer quite a bit unless demands from elsewhere pick up. Malaysia certainly doesn&#8217;t need to catch an American flu.<\/p>\n<p>How about that to start the new year? Pessimistic already?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yield curve is currently a hot topic in the United States. At least, in the economic circles (tag). Why is it so hot? Well, yield curve is a locus of points of interest rate for bonds of different maturities and right now, it&#8217;s inverted. Inverted yield curve means expected future short term interest rates are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-701","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=701"}],"version-history":[{"count":0,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/701\/revisions"}],"wp:attachment":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}