Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

Contraction Of Credit… Central Bankers Greatest Fear!

February 29, 2016 by mosesman

NYSE-investor-credit-SPX-since-1995-inverted

  • Contraction Of Credit… Central Bankers Greatest Fear!
    by Bill Holter, http://www.jsmineset.com/  
    Just a short comment on a VERY BIG problem! The above chart shows “margin” balance on the NYSE with an inverted chart of the S+P 500 laid over it.
    –
    Please notice the amount of credit being used to carry stocks now is significantly larger than it was at previous market tops in 2000 and 2007. Also, the amount of credit has begun to contract, this is a classic margin call being met …so far. The danger of course is as it always has been when margin builds like this. As the equity market pulls back, margin calls are issued and in some cases “forced sales” are done. This can, has in the past and most likely will occur and morph into a virtual loop where forced sales weaken prices, creating new margin calls and more forced sales in a negative feedback loop…otherwise known as a market panic.
    –
    It does need to be pointed out, there will be no “white knight” this time around as there are none left. The Fed rode in and save the markets in late 2008. It was discovered after the fact they lent $16 trillion all over the world. They have blown their balance sheet from some $600 billion in 2007 to a current $4.5 trillion. The Treasury had about $9 trillion of on books debt with a $14 trillion economy. Now the Treasury owes $19 trillion (the real number is multiples of this) supported by a $17 trillion economy (this amount is questionable).
    –
    My point is this, in the past when margin debt got to outsized levels it created “bubbles” as it has now. Once the margin debt begins to contract, this is when the waterfall action begins and this is exactly where we are today! Margin debt is contracting with the background of a financial system that is having liquidity problems. Top this off with central banks already all in, and sovereign treasury balance sheets bloated with more debt than the size of their underlying economic output.
    –
    read more.

end

Post navigation

Previous Post:

The Global Run On Physical Cash Has Begun: Why It Pays To Panic First

Next Post:

Rare Footage: Turkish Tanks & Artillery Concentrate on Border with Syria Near Kobani

Pages

  • About

Recent Posts

  • Something BIG is Happening in Ukraine And NATO is Scared | Redacted with Clayton Morris
  • World Heading into ‘Wider War’ – UN Chief
  • Excess Deaths, MP Calls for Urgent And Thorough Investigation
  • Watch: Australian Senator Sends RED ALERT About WHO Pandemic Treaty
  • OIL CRISIS EMERGENCY ALERT! – Banks Warn Of SHORTAGE! – Turkey Earthquake Shuts Down Oil Terminals
  • Grammy’s Satanic Performance, Sponsored by Pfizer
  • CBDC | “Central Bank Digital Currencies Are Not Currencies. CBDCs Are a Financial Transaction Control Grid. You Can Have Your Money Turned Off.” – C. Fitts + “It’s End of the Dollar, Wiping Out Stocks, Bonds & Mutual Funds.”
  • Abortions | Why Is the Satanic Temple Opening an Abortion Clinic to Provide ‘Religious Abortion’ and ‘Abortion Ritual ‘Care? | Discover the Horrific Stories of Planned Parenthood
  • Ukraine Will Used the Weapons to Attack Moscow – They Lied
  • Experienced Pathologist Confirms COVID Vaccination Causes Giant Blood Clots, Cancer & Infertility
  • How the “Unvaccinated” Got It Right
  • Attacks On Iran, Syria Ignite Tensions In The Middle East
  • The Next Black Swan Will Come Out of the Derivatives Market
  • Russia, Africa, To Drop US Dollar and Euro In Trade Settlements
  • Doug Casey’s Take [ep.#234] Why Are the “Experts” Pushing Us into WW3?
  • Italy’s Internet Restored After Nationwide Outage; Reports Of Global Ransomware Attack
  • The Dollar Empire Won’t Go Quietly.
  • The Medical System is a Complete SCAM: Please Stay Away
  • Why They Lied: Del Bigtree on Pharma, mRNA EUA & The COVID Catastrophe Cover-Up – Ask Dr. Drew
  • Gravitas LIVE: Three Strong Earthquakes Jolt Turkiye & Syria Leaving Over 2000 Dead

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
February 2016
M T W T F S S
« Jan   Mar »
1234567
891011121314
15161718192021
22232425262728
29  
© 2023 Socio-Economics History Blog | WordPress Theme by Superbthemes