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MARGIN CALL: Why The Next Market Crash Will Be Worse Than Anticipated

Last week Mike Maloney unveiled his new indicator, the Market Fragility Index, to the public. Today he shows us a recent discovery that helps explain why the cracks in the financial system are growing larger every day, and why the next market crash will be far more devastating than anyone has anticipated.
If you enjoyed watching this video, be sure to pick up a free copy of Mike's bestselling book, Guide to Investing in Gold & Silver:

42 Comments on MARGIN CALL: Why The Next Market Crash Will Be Worse Than Anticipated

    • Work With Nature If you read his biography, you will see that peculiar business circumstances, personal relationships, and market phases created a perfect vaccuum that supported his wealth success. Not to take away from his merit to have tied it all together. But my point is that if anyone tries to to do the same today, 99.9% of candidates will fail. If you model his investing style algorithmically and quantitatively test it, you will get BELOW average results, meaning not even matching market performance.

    • What? It’s called value investing. It’s replicable and is used by many. It smacks people who think of the stock market like gambling. The only people that don’t survive pull out their money and don’t adhere to it. Go do your homework before you make sweeping comments.

  1. Before the 1929 crash many were encourgaged to buy on margins! Banks should be outlawed the FED should be destroyed !!

    • Well outlawing banks would be overkill.
      Banks just have to be held responsible for their failures. And fail.

    • Business Crusader; I can’t help it. My imagination is that when you require the bail-in of banks, that is where and how responsibility should end. But banks contribute money to lobby our government to make the laws to allow the public bailout of the banks (who are licensed to create money to make loans). The first lie you hear is when they say the bailout is for the safety of the public! If banks knew they would not get a public bailout then they and their depositors would be much more careful with the money they created to make loans. A bail-in will hold responsibility with bank management and the depositors who were fool enough to trust them. But for some phony public good we bail out the depositors, we bail out the banks, and we bail out their liabilities to prevent their failure. A bailout is a work around to avoid a bankruptcy. Bankruptcy is our friend, the essential assets are maintained, the old management is tossed out, and new management buys those assets the court auctions on a dime to a dollar. And we, the public are better off with the new management running the old assets. This is how we can hold those people who take unnecessary risks the responsibility associated with their profits.

  2. I’ve been following your content for YEARS, I’ve also purchased your books and followed your advice on certain things. I know that the greed and seemingly lack of ethics and morals of the banking system, stock market and all other financial entities are causing these numbers you project to look ridiculous and makes for a good story of impending doom, which may very well be. However, as I watched this video and other videos about the crash and collapse and the dark days ahead I couldn’t help but wonder that perhaps, as anything else on life, too much of anything is bad. I believe that the promulgation and constant dissemination of this type of content can only accelerate the “inevitable crash” (and obviously those that are very well leveraged are very in favor of a crash to come). I am by no means an economist, stock broker nor am I involved in anything related to finance or the economy, but my common sense tells me that if we keep pushing the idea of a crash or even a COLLAPSE of the economy, it will cause people that have certain “assets” to get rid of them or pull out of the economy in fear of what’s coming and then by default we REALLY end up in a bad down turn because of all the fear being imparted.
    “What you resist, persists.”

    • +al-Haifawi Predictive programming is a subtle form of psychological conditioning provided by the media(or “alternative” medias) to acquaint the public with planned societal changes to be implemented by TPTB. In other words they are getting the population psychologically prepared to accept this coming crash.

    • de-polarised sheeple 

      Oh OK. Thank you for explanation, but I hardly know anyone who knows anything about this whole ordeal… Also Maloney is quite harsh with the government and the people who have caused these issues, so if it is decreed that such a crash will occur then the people who are responsible for it will probably be put on trial (and maybe not an ordinary trial, if you know what I mean). So for them to be spreading this information as a part of some predictive-programming scheme is (for me) unlikely – since that would mean that they’re digging their own graves (probably literally so). Keeping the people fooled is probably their best bet… Whistle blowers like Maloney are like a big thorn in their side.

  3. Debt is the lord, fiat is the king, bankers are the saints, governments are the managers, workers are slaves… welcome to the brave new world


  5. People will get outraged at the thought of 75%, instantly liquidatable margin on equities which are outright assets, yet they will find it perfectly reasonable to take on 30 years, 800% leverage on a mortgage to purchase what is essentially a liability no matter what common wisdom will have you believe.

  6. Are they insane? Last time I had an account, which was less than 2 years ago, you had to get approval to have a leveraged account.

    • Then the Brokers realized they can lend out any shares their customers hold in a Margin account to Short Sellers at interest!  Understand why they changed now?  Very few can get approved for naked Shorting of Stocks.  They must be able to deliver shares to the buyer of their short sale, even though they don’t actually own the shares they deliver!  The Short seller then buys back someone else’s shares, hopefully at a lower price, and delivers them back to your Margin account and you are none the wiser.  ;^)

  7. a small international family cartel, separate from any Government, who receive a 6.9% annual dividend as shareholders of a debt based currency system (not money)..backed by a Collectivist ideology, that has spread throughout the world like a cancer.

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