This site cuts to the straight talk on current financial and economic topics. All related comments are welcome for discussion and suggestions. Please keep in mind that the views expressed in this blog represents the opinions of Sam Park and do not necessarily reflect that of Buchanan Street Partners. The posts and comments do not represent any type of investment advise, and you should conduct your own due diligence before acting on ANYTHING mentioned in this blog.
Thursday, September 01, 2005
Is Recession Inevitable
Some have compared the impact of rising gas prices on disposable income. Some say that gas prices will not hit the $4 mark on average. The theory behind that is gas consumption will be reduced at those levels. If it plays out as so, then that's all you need to set the recessionary path on its way. Consumers will stop traveling and cut back on spending. No spending, our economy slows, GDP falls, and you know how that story goes.
Hi Sam - I came across your web site and was wondering what your opinion is of the chances that the yield curve will invert by year's end? I noticed that the short end of the yield curve is almost inverted (I'm talking the two and three yr. US T-Notes). I'm curious to know you're take on this...Happy Labor Day!
ReplyDeleteRecessions well happen.
ReplyDelete