The inversion game makes me vomit. It's like when the averages would go higher every time oil would go higher.
There is no real connection to the economy right now because another aspect of globalization, besides the way that the U.S. and other countries catered to China all of these years in a craven way to get more business, is that money can flow freely from one area to another.
Every time yields go up you should expect that buyers will come and force those yields down.
The reason why this game is so stupid is that the algos are set to short stocks all the way down which means, if you believe as I do, that we could easily have negative rates from the amount of money coming in, then stocks should go down relentlessly. I just don't think that's going to happen. But I respect the algos and I think you have to accept their downward bias as interest rates keep dropping.
The one difference between us and pretty much every country is that these rates are attractive to business people who want to build things where there is demand.
And if the president were to realize that, how terrific it would be to offer long bonds?
Then we could have a backstop if the economy tips into recession, not a bad option if the yield curve really is telling something negative which, again, I do not think is the case.