Tuesday, June 18, 2013

Whenever Margin Debt Goes Over 2.25% Of GDP The Stock Market Always Crashes

What do 1929, 2000 and 2007 all have in common? Those were all years in which we saw a dramatic spike in margin debt. In all three instances, investors became highly leveraged in order to "take advantage" of a soaring stock market. But of course we all know what happened each time. The spike in margin debt was rapidly followed by a horrifying stock market crash. Well guess what? It is happening again.

http://theeconomiccollapseblog.com/archives/whenever-margin-debt-goes-over-2-25-of-gdp-the-stock-market-always-crashes

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