Interesting Chart from Michael Burry Concerning Margin Debt and Market Crashes

[Saltynuts]

do you see the red line? now look at where red shows up on the chart again. See that? as red line goes down, price goes big.

Big margin goes down (dont forget, according to the chart), stock goes up. When big margin gets called, stock will go down.

Its no wonder 90% of retail are a bunch of money losing idiots.

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.

 

[IamTheCasino]

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.

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.

 

[Saltynuts]

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.

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!

 

[Cuddles]

He took multiple shots directed at Elon Musk personally.... and then later deleted all of his tweets.

problem?

 

[piezoe]

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!

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.

 

[IamTheCasino]

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.

Make this dense fuck learn to read a chart, no helping. (@Saltynuts) lol. It will probably help him in trading

 

[zghorner]

Make this dense fuck learn to read a chart, no helping. (@Saltynuts) lol. It will probably help him in trading

This your alt account Dozu?

 

[IamTheCasino]

This your alt account Dozu?

A, IDK who that is

B, its called fucking around. Get a clue.

 

[nattybumppo]

Burry has the Midas touch. his trades turn to gold but take a toll on society. shorting subprime, investing in GME, and now foreshadowing hyperinflation. if he's right, following his advice i guess we can profit, but the world will not be a happy place.

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.

 

[ET180]

Burry has the Midas touch. his trades turn to gold but take a toll on society. shorting subprime, investing in GME, and now foreshadowing hyperinflation. if he's right, following his advice i guess we can profit, but the world will not be a happy place.

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.