Good and Bad news on the Econ front

Some unexpected good news on the housing front -- record new home sales in October. Even the characteristically bearish Calculated Risk conceded "
This is a very strong report. The pronouncements of the demise of the housing market now appear premature."

The bad news, however, is that it looks like the yield curve is about to invert. In plain English, this means that the short term interest rate is on the verge of overtaking the long term interest rate. This is a screwy state of affairs that is as good an indicator for a recession as any.