Wall Street pundits throw a big curve

Wall Street pundits throw a big curve
"...Here’s the rub: Yield curve inversion held meaningful merit prior to the financial crisis, when the Fed wasn’t the biggest player in the US bond markets. 
But that has changed.
Today the yield curve could be very misleading for two major reasons.

• In Germany and other European countries, interest rates are substantially negative, hence there is a massive influx of European money pouring into our Treasury market.
• The other giant distortion is the Fed’s reinvesting of proceeds from maturing bonds back into the market instead of reducing its massive $4 trillion balance sheet.

That creates an additional abnormal and massively outsized buyer depressing five- to 10-year bond rates.
The pundits are foolish for not examining the weight of these two massive variables.
It seems the most relevant inversion may be what’s going on inside the minds of the inept Wall Street economists..."
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