Stoccks are at record highs on the basis that Marco Rubio might a 'yes' and John McCain will make it through the weekend... but if everything is so awesome, why is the yield curve collapsing?
This is the 5th weekly plunge in the yield curve in a row - the longest streak since March 2016
The yield curve is now the flattest since Nov 2007, with the flattenig accelerating.
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2017 is the fastest yield curve collapse since 2007...
If this is not going to end badly, we are going to need more QE - as JPMorgan shows in the chart below - each episode of QE steepened the curve and lengthened the current cycle...
