Home > investing, Stock Market > Large margin debt supporting the Ponzi

Large margin debt supporting the Ponzi

The market may go higher or may go lower from here.  There are plenty of indications that we are in a topping process.  There are some signs that the market could run higher in the short term.  And who knows, maybe that becomes a longer term.

However, a strong capital base is an essential foundation for economic growth.  And asset appreciation.  And based on this chart from Zero Hedge, we’ve got a lot of margin froth supporting this market.  When margin calls hit, things drop fast.  Point being… if/when we hit the tipping point where a “correction” triggers enough margin calls, it’s going to get ugly again.  Just like 2000.  Just like 2008.  It’s something worth remembering when Playing the Ponzi.

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