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View Full Version : FED Report Shows High Leverage Poses Threat to US Financial System



Buncheong
11-14-21, 00:53
http://i.imgur.com/iIK87tI.jpg (https://imgur.com/iIK87tI)

“As for who will be losing their shirts when this bubble pops, the Fed’s report offers this:

‘The median leverage ratios of younger retail investors are more than double those of all investors, leaving these investors potentially more vulnerable to large swings in stock prices, as they have a larger debt service burden. Moreover, this vulnerability is amplified, as investors are now increasingly using options, which can often boost leverage and amplify losses.’”

https://wallstreetonparade.com/2021/11/new-fed-report-shows-high-leverage-poses-threat-to-u-s-financial-stability-from-life-insurance-companies-to-hedge-funds/

Business_Casual
11-14-21, 09:22
These are institutional investors. There’s tons of liquidity.