‘Lost’: The Ultimate Viewer’s Guide

EW prepared the in-depth profiles of 12 main characters of ‘Lost’ and asked some good questions to the producers and writers. (Of course without the answers)

It’s good prep for ‘Lost’ watchers before season 3 starts.

‘Lost’: The Ultimate Viewer’s Guide (Entertainment Weekly)

A few good questions that made me intrigued

• ”We know Jack’s wife fell in love with another man — who was that other man?”
• Desmond, ‘He’s spent time in prison, but why?” ‘What happened to Desmond as a result of getting blown up in the hatch?”
• Mr. Eko, ”Is he a priest — or a warlord?” ”What’s his mission?”
• ”We know he’s not Henry Gale. What’s his real name?”

Inverted Yield curve

A good summary of the current inverted yield curve:

In a Turnaround, Slowing Economy Spurs Bond Rally (WSJ, Sept. 26, 2006)

Because bonds pay fixed interest, their yields go down as investors bid up their prices, and vice versa. Earlier this year, Treasury yields rose as investors fretted that a strong economy would pump up inflation. Inflation eats away at bond returns, so investors dumped Treasurys, which pushed bond prices lower and their yields higher.

Now, in the upside-down world of bond investing, bad news about the economy has investors turning back to bonds, which is pushing yields back down, essentially making it cheaper to borrow money.

Yesterday’s yield on the 10-year Treasury note was lower than the 4.65% yield on two-year Treasury notes and lower still than the 4.89% yield on three-month Treasury bills, something that is highly unusual, because investors typically demand higher returns for holding securities with longer maturities. The rate on overnight bank loans, which is driven by the Federal Reserve, is even higher — at 5.25%.

Because the disparity between these rates is unusually large, some investors say something has to give — either the Fed will begin cutting short-term rates in response to a weakening economy and low inflation, or the economy will start showing its strength and yields will turn higher.

For now, as the nation’s once-hot housing market cools and the economic outlook dims, investors are coming to the conclusion that inflation isn’t a worry, and they are gobbling up Treasury notes and bonds, pushing their yield lower.