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by Jeffrey P. Snider
Alhambra Partners
When analyzing the full and true nature of the dissonance between the idea of continued recovery and the financial markets’ scenario for something much worse you realize that this is not a new occurrence. In curve after curve, negativity has been building for years. Financial curves are important because they tell us the health of the monetary economy, namely assumptions and interpretations of time value. A wholly flat and shapeless curve is the definition of monetary death, a binary regime which suggests that either there is no reward in lending at longer maturities or that risk is too extreme to make any such lending unwise.
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