The commies are skeptical....
Wall Street margin debt surges to record high - World Socialist Web Site https://t.co/mFNewOZUac
— Jacquie (@jacquie_goff) May 3, 2021
The commies are skeptical....
Wall Street margin debt surges to record high - World Socialist Web Site https://t.co/mFNewOZUac
— Jacquie (@jacquie_goff) May 3, 2021
8 comments:
Trots and economists have predicted 10 of the last 7 recessions.
Margin debt at record high
Margin debt levels are a meaningless statistic. This is because historically low interest rates allow investors to carry a higher level of margin debt.
iirc Margin requirements are directly set by the Fed... doesn’t have anything to do with rate policy...
https://www.investopedia.com/ask/answers/052115/what-are-different-types-margin-calls.asp
“ The brokerage firm and the investor must follow many rules when buying securities on margin. The Federal Reserve Board sets the rules for margin requirements. If these requirements are not met, an account holder can receive either a maintenance margin call or a fed margin call.”
It’s regulated....
Lately seems like the current credit contraction is causing a big sell off in the trendy tech stocks... which imo are the ones more likely to be margined...
ARKK is 33% off it’s highs... Fed has the big banks indemnified against a 55% reduction so almost there...
ARKK high was 160 yesterday close 108.... pretty big price reduction so far...
Trots and economists have predicted 10 of the last 7 recessions.
They need to try harder. Steve Keen has been predicting a housing crash in Australia for some twenty years. :-)
We're still waiting for a housing crash in Canada.
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