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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Ibexx who wrote (22189)10/21/2001 6:43:22 PM
From: velociraptor_  Read Replies (1) of 52237
 
<<margin debt is at the lowest level since December 1998 and down from the peak of 278 billion in March of 2000>>

This may be misleading as last I heard the numbers are not based on banking and brokerage debt which is at all time highs. The lower margin debt may have to do with more players folding or closing out due to new margin rules that will take some people out. Banks and brokerages are stillleveraged to the hilt. One nasty derivatives blow-up could be a huge problem and they fail to mention this at all.

A closer look at the derivative problem can be found at JP Morgan...(lifted from CyclePro site)

JPM's (combined JPMorgan & Chase) netted
derivative holdings is $22.3 trillion, their market capitalization is currently $61.2 billion, this means a ratio of 365 to 1. JPM's assets and deposit base is $713 billion, this
means a ratio of 31.4 to 1.
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