Margin Debt over 2.25 Percent of GDP

Margin Debt over 2.25% of GDP

We spoke recently about the record margin debt on shares at present in the US of over $384b.  What that figure coincides with is it has tipped over 2.25% of GDP which also happened in 1929, 2000 and 2007 just before the market crashes after each of those years.  It will be interesting to see if the Fed’s direction on QE this morning is the tipping point for seeing this play out now or more money printing will keep it propped up for a little longer.