John Rubino--Beware of Flattening Yield Curves #3763

Short term rates are starting to rise, but long term rates are not. What does that mean to the economy? Under normal circumstances that would mean a recession is on the way. We're also seeing further deterioration of state finances and junk bonds have been getting hammered. Perhaps, we've really been living in the best of all possible worlds and now the merry-go-round is going to stop, quickly and hard!