How Much Time do we have Before the Next Economic Crisis?

Not much time.
Since early July, the 30-year US Treasury Bond Price Index has plunged 8.3%. It’s now called ‘the rout’ in longer-dated government bonds. One of the specters is rising inflation at a time of ultra-low yields.
What has become the number one predictor of a bear market in stocks over the past many decades? The US Treasury yield curve. It drives bank lending – which can strangle the economy. But this time, the risks are much higher, and the potential economic consequences steeper.

This post was published at Wolf Street by Wolf Richter ‘ October 29, 2016.