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High amounts of margin debt indicate that a crash is coming. When a lot of the investments fail, the whole house of cards unwinds: A lot of the debts go bad, an
by gwbas1c 1y ago
High amounts of margin debt indicate that a crash is coming. When a lot of the investments fail, the whole house of cards unwinds: A lot of the debts go bad, and then there isn't enough lending to create investments which are then used to create jobs.
- cosmicgadget 1y agoAlso margin calls will force selling of equities, driving the prices down.