I was flying to the UK on Friday so I missed the second 3 percent drop in the stock market in three weeks. When I landed I discovered that Everyone is agreed that President Trump is to blame because of his tweets jawboning the Fed to lower interest rates. Well I’m not a credentialed journalist or a credentialed economist or a credentialed central banker, but all I can say is that I have been worried about the inverted yield curve for months. The inverted yield curve is when short-term rates for U.S. Treasury securities are higher than longer-term rates. Right now for August 23, 2019, from the Treasury website, 1-month T-bills are yielding 2.07%, 5-year Notes are yielding 1.40%, and 30-year Bonds are yielding 2.02%. Not good, according to my understanding of the credit markets. In healthy credit markets with economic growth as far as the eye can see, the 1-month T-bill has the lowest rate, and all longer-term Treasury securities have progressively higher rates. The yield...(Read Full Article)