Fears of market collapse amid record margin debt

Record margin debt for the stock market, while the stock market threatens to go down. If the stock market does go down, there will be a domino effect of “margin calls” where people who borrowed “on margin” to buy stock will get a “margin call” to pay back these debts, and then things get really interesting.

GulfDogs

NEW YORK – Borrowing money from stock brokers to buy stocks has now hit an all-time high, triggering fears of a downward market adjustment and a collapse of the brokerage-made loan market investors typically use to fuel continued bull market growth.

Data published by the New York Stock Exchange at the end of March shows margin debt – the loans made by stock brokers to permit investor clients to buy stocks on credit – has reached a record high of $466 billion, approaching for the first time a half-trillion dollars.

Analysis of NYSE margin debt shows previous peaks have foreshadowed severe market corrections.

It happened in the summer of 2000 just before the dot.com stock market crash and in the summer of 2007, preceding the bursting of the housing bubble that caused the dramatic economic downturn that began in 2008.

Stock market technical analysts have recently drawn attention to the…

View original post 222 more words

Advertisements

About mindweapon

A mind weapon riding along with Four Horsemen of the Apocalypse.https://en.gravatar.com/profiles/edit/#
This entry was posted in Uncategorized. Bookmark the permalink.

10 Responses to Fears of market collapse amid record margin debt

  1. Sam says:

    They ought to stop all margin buying of stocks and limit futures to those willing to take delivery of what ever commodity.

    • mindweapon says:

      No they oughtn’t! let that sucker come down HARD!

      A lot of conspiracy theorists say “they want to bring it down on purpose.” that’s crazy. that’s the last thing the ruling elites want. that’s their worst fucking nightmare — to lose this machine of prosperity and easy everything. Do you think N-t R-thschild wants to live like a medieval king instead of a modern banker? No way! This way of life is way way way easier.

      Some of the ruling oligarchs claim to want massive population culling in a cocaine induced flight of fancy, but they don’t realize what kind of world it will be if they get what they want. THey will be so screwed, even if they have bunkers. Life won’t be so peachy in their bunkers, and any interaction with non-oligarchs will be fraught with fear and shame.

      • As James Cagney demonically screamed at the end of White Heat, “Top of the World, Ma, top of the world.” Never underestimate a psychopath like Cody Jared. If the oligarchs think they can increase their power and influence by bringing down the system, that’s what they’ll do.

      • mindweapon says:

        Yes, but they won’t increase their power and influence by bringing down the system. THe system IS their power and influence.

        Without the System, people fall back onto their own resources again, and new powers can arise.

      • wobbly says:

        Yes. They don’t want to bring down the system. They can’t stop themselves doing it because their paranoia makes them effectively insane but they don’t want it.

        When you see their behavior as driven by extreme paranoia it makes a crazy kind of sense.

  2. Denise says:

    All Putin needs to do is cash in “our” Treasury bonds. That’s it. His tanks are moving into the Ukraine.

    Excellent.

    I can’t wait to see what happens next.

    • mindweapon says:

      Where is the news that the Russian tanks are actually moving into Ukraine? I don’t see that anywhere.

    • Anon says:

      In theory creating a hiccup in the system like that wouldn’t be a problem. Debt can be monetized, and there is no need to not just let the debt reach its market value. They can’t cash in or otherwise call the debt early I don’t believe, the terms generally mean that one has to wait for maturity for that to happen.

      In practice our debt has to be turned over some absurd time increment like every 90 days, which is great for anyone who wants to park their money in a relatively safe place, and terrible for the American people. It probably wouldn’t require an impossibly large amount of cash to force a hiccup(for a government that is), but then if they do, they get to see how our rulers respond to their plans going off the rails full bore like that. Probably won’t be pretty.

  3. Fucking Kikes and their shabbots goyeem! Slithering worms they are. The lot of them. Lying and destroying with their lies. The kike mind never ceases to amaze since they are all to a one parasites. I just finished the “Jesuits in space” whiner of maria russell, a kike bitch who came out of the closet. Damn….ever those who I know cant understand how kikes killed 200! Million in the 20th century versus the phoney 6 million, result of some rabbi’s prophecy from some white gentile boy’s raped and blood drain and drinken carcass.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s