Yield Curve inversion

I read three pieces in three different online publications discussing bond rate "yield inversion", usually called a harbinger for recession (or economic slowdown). While the Fed has signalled that it's not going to tighten credit any more, there are those in the MSM who desparately want bad economic times, else, President Bush will get undo credit that an "unelected" president should not recieve.

That stated, here's a bit from a piece from RCP. It has value insofar and the naysayers are wrong that the curve actually will invert. It only might, and only if The FED continues to tighten, whcih they said they won't do. Power graf:

The ``yield curve'' of interest rates ``inverts.'' An inversion means that short-term interest rates (say, on three-month Treasury bills) exceed longer-term interest rates (say, on 10-year Treasury bonds). Usually, short-term rates are lower, because the risk of lending for lengthier periods is greater. Since 1965 interest-rate inversions have occurred seven times -- and recessions have followed in five, notes Bill Dudley of Goldman Sachs. The reason: an inversion signals tight money. In 2006 Dudley expects another inversion, as the Fed raises short rates. But he thinks we'll escape a recession, because the overall level of rates will remain low.

I think this is correct and look for growth in 3-4% range, barring unforeseen occurances.