Interesting Chart from Michael Burry Concerning Margin Debt and Market Crashes

Discussion in 'Trading' started by zghorner, Feb 21, 2021.


  1. So, I guess I see that generally. But how does that play in with your point about margin getting called? If the use of margin is DOWN now and heading LOWER, wouldn't that mean the risk of stock prices declining through future margin calls is being reduced?

    And thank you for your kind words. :)
     
    #11     Feb 22, 2021

  2. are you dense? The margin line is going down but if you look to the left the money for margin is going up. See those things called numbers in red on the left side of the graph? That represents margin prices.

    So in fact margin IS NOT going down.
     
    #12     Feb 22, 2021
    henry76 likes this.

  3. Oh SNAP, I didn't see the inverted numbers on the left. I wonder why they inverted the numbers - why not leave them as they would normally be and to more clearly show how the index tracked the margin debt. But I dunno, I'm Mr. Dense. :)

    Thanks IamTheCasino!
     
    #13     Feb 22, 2021
    IamTheCasino likes this.
  4. Cuddles

    Cuddles

    problem?
     
    #14     Feb 22, 2021
  5. piezoe

    piezoe

    FWIW here is a chart, courtesy of "Advisor Perspectives", without an inverted left axis: The link is in the upper right corner of the chart.

    [​IMG]
     
    #15     Feb 22, 2021

  6. Make this dense fuck learn to read a chart, no helping. (@Saltynuts) lol. It will probably help him in trading
     
    #16     Feb 22, 2021
  7. zghorner

    zghorner

    This your alt account Dozu?
     
    #17     Feb 22, 2021
  8. A, IDK who that is

    B, its called fucking around. Get a clue.
     
    #18     Feb 22, 2021
  9. We might get some inflation, but it will not be "hyper" unless Congress authorizes debt monetization, and so far I haven't heard of that even being discussed.
     
    #19     Feb 23, 2021
  10. ET180

    ET180

    People shorting subprime did not lead to housing collapse...it was the housing bubble that preceded it. All bubbles eventually collapse. Probably better to blow the bubble now before it gets bigger.
     
    #20     Feb 23, 2021