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Subject OK GLP: I found statistical PROOF US Stock market is a BUBBLE. A CARSH is coming. HUGE MARGIN debt is the REAL reason of the FLYING US MARKETS
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Original Message MUST READ ARTICLE: US MARKET IS a Bubble THANKS TO MASSIVE DEBT!
Guys I found that the stock market is a MASSIVE BUBBLe thanks to
1) international capital flows
2) bizarre low interest rates
3) AMAZING MARGIN DEBT = 2,5% US GDP!!

READ THIS PART of the article:


Narrowing our focus to the present advance, what concerns us isn’t simply the parabolic advance featuring increasingly immediate impulses to buy every dip – which is how we characterize the psychology behind log-periodic bubbles (described by Didier Sornette in Why Markets Crash). It’s that this parabola is attended by so many additional and historically regular hallmarks of late-phase speculative advances. Aside from strenuously overvalued, overbought, overbullish, rising-yield conditions, speculators are using record amounts of borrowed money to speculate in equities, with NYSE margin debt now close to 2.5% of GDP. This is a level seen only twice in history, briefly at the 2000 and 2007 market peaks. Margin debt is now at an amount equal to 26% of all commercial and industrial loans in the U.S. banking system. Meanwhile, we are again hearing chatter that the Federal Reserve has placed a “put option” or a “floor” under the stock market. As I observed at the 2007 peak, before the market plunged 55%, “Speculators hoping for a ‘Bernanke put’ to save their assets are likely to discover – too late – that the strike price is way out of the money.”




My outlook is that...

read more:
[link to www.silvertardsweride.com]
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