I saw that too. These people better pray there's no correction, and that the new rule is that markets can only rise. Even a 5%er would put them in serious pain. A 10%er+ would crush most. If one likes living dangerously....
hmm, i saw that same graph last night when i was researching margin debt. however bylo is right, if there is just a 5% pullback margin calls will be going off left and right. $285,000,000,000 worth or margin debt.
chart of margin debt in nominal$ probably isn't very helpful imo. also, are hedge funds included in margin stats or in some other category? thanks.
Don't confuse factors that could potentially exacerbate a correction for causing a correction or hastening its start.
That is with Reg T borrowing 100% of equity, wait until April 2nd when it goes up to 666% with porfolio margining. http://elitetrader.com/vb/showthread.php?s=&postid=1358733#post1358733