What is a Yield Curve?

If you've been following what the Federal Reserve is doing with the interest rate, you have probably heard them talk about the yield curve. Marketplace Senior Editor Paddy Hirsch explains what the curve is and what happens if it gets flattened.

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Category:

News & Politics

Tags:

• Ben Bernanke
• economy
• federal reserve
• yield curve
• interest rate
• economics
• whiteboard

[fububalla]

Hey Paddy, nice work, the only problem or fallacy I see in your explanation about the yield curve in relation to banks is that banks don't have a great financial motive to loan because more than 80% of most major banks' profits are from trading (derivitive prop trading cds etc) You know, the things that wreck the markets/economy in the first place.

Plus banks see the loans as not only not as profitable, but riskier given the job market and specific regs that went to far in the other direction

[deemzje]

I know little of economy. I don't want to know anything about economy, because it involves the concept of "making money with (just) money", at which point my eyes glaze over and I start drooling.

Nevertheless, I enjoy your explanations very much, learning some things about economy, needing a drink.

[Will18121980]

Great Video (again!)

But I love the drawing of Ben Bernanke :D

[xecto06]

great thanks! :)

[xtinct2]

the double pen toss!!

i didn't think that move was possible!!

#epic

[kgtrains]

Fed is out of options, we need to restructure the tax code, close the loopholes for corperations, increase tarriffs and require companies that sell 90% in the US to hire 90% in the US.

[0musing]

Hey Buddy, nowadays, I am pretty much drunk 24x7, jusht woke up this morning to get myself a beer ..hic!

Operation twist sounds like we need to apply torsion to Heli Ben's cojones and finally maybe the cervix as well!

[liebstandarteadolf]

2 markers at the same time. Nice!!

[0line]

+1

[farhmoha]

welcome back!