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Today, Explained

What's up with the yield curve?

Today, Explained

Vox

Daily News, Politics, News

4.49.5K Ratings

🗓️ 15 August 2019

⏱️ 15 minutes

🧾️ Download transcript

Summary

Vox’s Matthew Yglesias explains why everyone's whispering about a recession. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

Matthew Eglaceus, host of the Weeds podcast here at Vox, The Stock Markets, being uncooperative.

0:18.4

Elizabeth Warren says the economic downturn is around the corner.

0:22.5

Bank of America says the chance of a recession in the next year is one in three.

0:28.1

What do you say, Matthew? Is the recession coming?

0:30.2

I love one in three is a great coward's call. You can claim you're right either way.

0:34.7

No, I mean, unfortunately, there's no really foolproof way to predict recessions, but

0:41.0

there's an elevated concern today because there is something that has tended to happen

0:46.6

historically before a recession, and it's kind of happening now.

0:50.2

You're talking about maybe a clue, a clue of some kind.

0:52.7

A clue of warning is what we often call it, and it's called the yield curve.

0:57.9

Uh oh, yeah.

1:01.0

It's a yield curve.

1:03.8

The yield curve?

1:05.0

It's pretty sweet.

1:06.4

I see you tweeting about the yield curve.

1:08.8

People love the yield curve.

1:09.8

It's your jam.

1:10.8

Yes.

1:11.8

So nobody likes to talk about charts, but is that what we're about to do?

1:16.4

I'm going to try to actually leave it out.

1:20.0

Here's the way it works, right?

1:21.4

So the government sells lots of different bonds.

...

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