Global Economics

The Stock Market is 2/3rds margin cash. It will drop like a stone when that's all called in. …

The Stock Market is 2/3rds margin cash. It will drop like a stone when that's all called in.

I've collected all the relevant figures I could find on money in the stock market, and put them in a txt file, and put that on the front page of my unused website: http://www.rayner-hilles.com

35 Responses

  • Rayner-Hilles

    Feb 9, 2018

    The Stock Market is 2/3rds margin cash. It will drop like a stone when that's all called in. https://s3-us-west-2.amazonaws.com/maven-user-photos/mishtalk/economics/pY98QOHeFE2eAof6gA5bwQ/7Ih6fyEFrkeMyGZq597Isw I've collected all the relevant figures I could find on money in the stock market, and put them in a txt file, and put that on the front page of my unused website: http://www.rayner-hilles.com

  • Rayner-Hilles

    Feb 9, 2018

    There seems to be an awful lot more debt than cash. Well the debt is being used as the cash; really I am saying there's an awful lot more credit than debit. And by credit and debit I mean the exact opposite of what is meant by credit and debit in the data here: http://www.finra.org/investors/margin-statistics One man's debt is another man's credit.

  • Rayner-Hilles

    Feb 9, 2018

    I mean is literally all the money in the stock market now in the process of being erased by margin calls? If that's true then the stock market is going to absolutely drop like a stone, right?

  • Rayner-Hilles

    Feb 9, 2018

    Cramer seems to be saying this is exactly what's happening: https://www.thestreet.com/story/14481553/1/volatility-reigns-supreme-cramers-mad-money-recap-feb-8.html

  • Rayner-Hilles

    Feb 9, 2018

    But does Cramer understand that margin credit actually makes up the vast majority of the remaining money supply being traded in the stock market? Also this is probably why gold isn't going up, because it can't: https://www.bloomberg.com/news/articles/2018-02-09/there-s-a-good-reason-why-gold-hasn-t-rallied-as-stocks-sold-off I'm putting all my money on shorting the market, and will buy gold down the line, perhaps by post if this is as bad as that chart seems to suggest.

  • Rayner-Hilles

    Feb 9, 2018

    Three more articles as evidence that the stock market is in a liquidity crisis, if not down right cash bankrupt. http://uk.businessinsider.com/stock-market-news-investor-cash-levels-record-lows-could-derail-bull-rally-2017-10 https://www.forbes.com/sites/investor/2017/08/02/investor-cash-allocations-fall-to-17½-year-low/#cb9dafc1455c https://www.wsj.com/articles/why-banks-will-cut-stock-market-fuel-supply-1517929686

  • shred1

    Feb 10, 2018

    Yep!

  • Staaycalm

    Feb 10, 2018

    I second that Yep! Unless institutions and corporations step up? Public thinks they can get out anytime with paper profit intact.

  • Rayner-Hilles

    Feb 10, 2018

    Well if we learnt anything ten years ago, it's that the banks and governments aren't allowed to fall and fail, but as for private interests in the stock market and property, even if they're people's 401ks and pensions, the institutional powers that be couldn't give a damn, so long as it doesn't directly affect the real economy.

  • Rayner-Hilles

    Feb 10, 2018

    Of course it obviously will indirectly, ever heard of the wealth effect? Also, I fear that stockbrokers, fronting the banks, are going to be left with a lot shares worth a lot less than they were counting on in their books. That could very well mean the return of the credit crisis.

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