Flattening Yield Curve Points to Double-Dip Recession

Bob Pisani of CNBC (who I find their best source for real info) commented at the close yesterday that the flattening yield curve is signaling a lack of belief in the recovery. Normally the yield curve steepens as a recovery gains strength; so a flattening curve indicates weakness. I commented on this several weeks ago and noted:

I would urge caution with the flattening yield curve. The learning from the Yield Curve really comes post WWII, in a period after the Great Depression when the propensity to save was giving way to an avarice for consuming. This has wholly flipped. Consumers are saving, not spending, and private business is still not borrowing to invest. The propensity to save lowers yields and flattens the curve...

Wall Street Pit: Flattening Yield Curve Points to Double-Dip Recession