Bending the Third Rail
Because We Should, We Can, We Do
Monday, March 19, 2007
Margin: New Record
Margin debt hit a new high today. This means that folks have borrowed an all-time high amount of money to put into the stock market.
The amount of money borrowed from brokerages that do business on the New York Stock Exchange to buy stock rose 3.6 percent to a second straight monthly record, reaching $295.9 billion in February. Margin debt, as the borrowing is called, in January broke the prior high set at the peak of the so-called Internet bubble.
Some folks call that a "contrary indictator" meaning that when most people think it's going up, watch out.