{"id":340810,"date":"2010-02-19T15:15:00","date_gmt":"2010-02-19T20:15:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/chart-of-the-day-2y10y-yield-spread-2010-2"},"modified":"2010-02-19T15:15:00","modified_gmt":"2010-02-19T20:15:00","slug":"chart-of-the-day-wall-streets-gravy-train-is-about-to-hit-a-brick-wall","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/340810","title":{"rendered":"CHART OF THE DAY: Wall Street’s Gravy Train Is About To Hit A Brick Wall"},"content":{"rendered":"
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The major banks are loving the uber-steep yield curve that allows them to borrow money on the cheap, and then lend it back to the government at a fat yield.<\/p>\n

Well, that’s just about over. Bernanke has signalled the beginning of the rate-hike cycle (driving up the cost of short-term borrowing) and as this historical chart of the 2year-10-year yield spread (via Waverly Advisors<\/a>) indicates, the curve just can’t get any steeper.<\/p>\n

In fact if history is any guide, it’s about to collapse big time.<\/p>\n

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