When I read the comments section, I think there should be more; however, Bill does such a complete task of explaining financial situations so simply, that I imagine most are nodding their heads in agreement.
No to former name. Just have been an avid reader of Bill and Elizabeth’s travels for years. Very sorry to hear she is not doing well. Will keep her in our prayers.
If you have bought stocks on margin (i.e. borrowed money) then when the stock price dumps, you get a margin call. You need to post cash to cover that. This is the liquidity squeeze... so you go from a situation where liquidity seems abundant (stock prices going up and plenty of borrowing available to buy more stocks) to a situation where you can't find the cash to pay the margin clerk.... is this what Bill means in his piece, please?
There was a typo in your comments regarding the market-cap-to-GDP ratio adjustment. With GDP at $23.2 Trillion, a market cap of 86% of GDP would result in a cap of $20 Trillion, not $29 Trillion. You correctly noted in the next paragraph that this would result in a loss of $28.8 Trillion in market cap, so you calculated it correctly.
Bill please comment on how your previous subscribers to Rogue Economics will have the remainder of their subscription $$ transferred to the new publisher if we so choose. All of your recent daily updates just offer a link to sign up for your new effort without any mention of how to transfer the remaining $$ of our existing subscription away from Rogue and with the new publisher. The Rogue phone staff can't even explain what is going on.
When I read the comments section, I think there should be more; however, Bill does such a complete task of explaining financial situations so simply, that I imagine most are nodding their heads in agreement.
Bill, how is Elizabeth and the rest of the family?
Elizabeth is Not well I’m sad to report ! Are you the former Maureen Cappeler(sp?) ?
Bill
No to former name. Just have been an avid reader of Bill and Elizabeth’s travels for years. Very sorry to hear she is not doing well. Will keep her in our prayers.
How's the doom index / crash flag looking?
Thanks, Brian C.
Is it possible one of elected officials would educate the people our whole economy is based on credit? i.e. 90% of stocks bought on margin.
If you have bought stocks on margin (i.e. borrowed money) then when the stock price dumps, you get a margin call. You need to post cash to cover that. This is the liquidity squeeze... so you go from a situation where liquidity seems abundant (stock prices going up and plenty of borrowing available to buy more stocks) to a situation where you can't find the cash to pay the margin clerk.... is this what Bill means in his piece, please?
Excellent article, as usual, Bill
There was a typo in your comments regarding the market-cap-to-GDP ratio adjustment. With GDP at $23.2 Trillion, a market cap of 86% of GDP would result in a cap of $20 Trillion, not $29 Trillion. You correctly noted in the next paragraph that this would result in a loss of $28.8 Trillion in market cap, so you calculated it correctly.
Bill please comment on how your previous subscribers to Rogue Economics will have the remainder of their subscription $$ transferred to the new publisher if we so choose. All of your recent daily updates just offer a link to sign up for your new effort without any mention of how to transfer the remaining $$ of our existing subscription away from Rogue and with the new publisher. The Rogue phone staff can't even explain what is going on.