Wait a minute… Six weeks ago, Goldman Sachs & JP Morgan talked investors into buying $600 million of new debt.
Few took the warning seriously that margin debt issued last year.
Higher rates eventually enforce a sort of discipline on the drunken party in government and even in the private sector. That would be a good thing.
Something has to give. And it’s going to be price.
Folks looking for yield have options now. Won’t beat inflation, but won’t get their face ripped off either.
“Recent stock market volatility” catches some of the blame.
So the Fed Gets Ready to Walk Away from the Bond Market, and All Kinds of Stuff Happens.
The cash-burn machine needs new fuel.
But future bond buyers get the higher yields.
There are other types of stock market leverage, and no one knows how much leverage there is in total. Margin debt is the only reported indicator.