According to the NYSE total margin debt in February stands at US$528B!
But that excludes other 'shadow' financing which is offered by other fin-tech companies to clients who can pledge against their securities as collateral. According to Zerohedge, this could amount to another US$250B.
Taken together, the potential of margin debt is a whopping US$778B!
On top of that, I previously covered that public and corporate pension funds have bet trillions of US$ in the US stock market.
A significant correction or fear of recession (which all economic indicators are pointing to) could manifest into a massive sell off as public and corporate pension funds exit and margin calls escalate.
If you look at the chart, you can see how margin debt has grown exponentially when compared to the growth in the S&P index.
This is a nightmare unfolding in slow motion.
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