Greenspan says that a recession may not result from an inversion of the yield curve

The chart in my previous post shows how the yield curve is getting ever closer to the same situation in 2000-2001 that resulted in an inverted yield curve (long term rates lower than short term rates), a stock market crash and a recession.

This is what Alan Greenspan has to say about this possibility, speaking to a bankers' conference in Beijing via satellite from Washington:

"I'm not sure what such a configuration, should it occur, would mean, I'm reasonably certain we would not automatically assume that it would mean what it meant in the past."

Categories: economy, interest rates, bond market