margin debt expansion

Margin debt expansion during the Clinton era and the resulting "wealth effect" of a bullish stock market was responsible for so-called "economic good times".

In 1995, the mainstream press was selling the idea that social security was bankrupt. The fall out initiated the biggest buying spree in American history as people sought to provide for their retirements in the abscence of garaunteed government money.

The reality is both systems are going broke. There is not enough new buyers to cash the boomers out of their stocks nor is there enough workers to support their social security payments.
posted by Sean on Wednesday, July 16, 2008 - link to this photo
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3 Comments

Wed, July 16, 2008 - 11:55 PM
The top of the graph represents 3 trillion dollars in total outstanding margin debt.
Thu, July 17, 2008 - 8:51 AM
It will be useful as wall paper to seal those pesky little winter drafts.
Thu, July 17, 2008 - 1:44 PM
oh come on social security runs a fucking surplus its solvent through 2042 at least and the numbers get better every year. i'm tired of the fear-mongering. i challenge anyone to show WITH NUMBERS how SS isn't doing fine. don't repeat the retirement stats thats not proving jack shit.

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