Flat curves are tight money then?

See? When people get happier about the future--when they think stocks are worth more because they expect demand to be higher and thus corporate profits higher in the future--the interest rate on long Treasury bonds goes up because the investor class is less scared. When people get panicked about the future, he interest rate on long Treasury bonds goes down because the investor class is more scared. DeLong

Scott Summer has it then. When the curve is flat, frightened investors are very tight with their money.