Credit market, stock markets, carry trades, blow up just on this little move….. pic.twitter.com/uslkej6c6e
— M/I_Investments (@MI_Investments) November 22, 2018
When credit initially starts contracting it leads to more credit contracting NOT LESS until there is sufficient free credit or cash to offset
Agree… problem is credit contraction implies liquidation & requires new available credits to purchase the forced liquidated securities. When credit initially starts contracting it leads to more credit contracting NOT LESS until there is sufficient free credit or cash to offset
— mcm-ct.com (@mcm_ct) November 22, 2018
October saw the largest drop ($40.48B) in Margin Debt since November 2008
Nov 2008 vs Oct 2018:
Combined Investor Credit:
Positive $136.9B vs negative $276BMargin/Free Credit in Cash Accounts Ratio:
170% vs 410%Margin/Total Free Credit (Cash+Margin Accounts):
62% vs 183% https://t.co/5TYH8oMEoB— SheepleAnalytics (@SheepleAnalytic) November 22, 2018
Margin Debt does not include low covenant loans taken to do share repurchases…the corporate margin call is way bigger and won’t start till the exogenous events transpire that will trigger it (see chart we put together showing the increasingly risky lending going on) pic.twitter.com/SMxDU3ZzKP
— mcm-ct.com (@mcm_ct) November 22, 2018
The return of #Volatility https://t.co/DJyjYSD048 $SPX $SPY pic.twitter.com/ycobGpqHKw
— Topdown Charts (@topdowncharts) November 22, 2018
Economists see the Trump economy slowing drastically next year before a possible recession in 2020 https://t.co/6bCWnrKeby
— M/I_Investments (@MI_Investments) November 22, 2018
The economy is fine as long as you ignore:
Corporate debt service costs
Housing
Oil
Home builders
Lumber
Commodities
Autos
Equities
Technology— OW🎄 (@OccupyWisdom) November 21, 2018