One of the honcho's at the NYSE, Grace Vogel, executive vice president for member regulation came up with a doozy in today's Wall Street Journal. Her comment was in reference to the record margin debt of $353,000,000,000. Yes, billion.
She was quoted as saying, "I wouldn't necessarily say that leverage equates to risk" and that "We feel that the amount of margin being collected by the firms is appropriate, given the strategies in (their customers) portfolio's."
What goes up, often comes down and leverage works both ways in the stock market.
One of these days Grace the time will come again to take out the canes and buy stock indiscriminately across the board. That time will come when record margin debt is drastically reduced. With market induced reductions.
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