05-13-2021, 08:33 AM
** 12-May-2021 World View: Taiwan Stock Exchange crashes on leverage unwinding
![[Image: 1200x-1.png]](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/invdAc0AgOF8/v2/1200x-1.png)
This is EXACTLY the kind of thing that causes a major financial panic
and crash -- when the market is over-leveraged with margin debt, and
the debts start to unwind.
The Taiwan stock exchange index crashed 9% on Wednesday, due to panic
over unwinding leverage.
We've previously talked about the possibility of a global financial
panic on May 28, about 7 weeks past the end of first quarter. This
may be one step along that path.
Then you'll learn what the word "deflation" really means.
---- Source:
-- Taiwan Stock Crash Shows World Dangers of Too Much Leverage
https://www.bloombergquint.com/markets/t...ons-expiry
(Bloomberg, 12-May-2021)
![[Image: 1200x-1.png]](https://assets.bwbx.io/images/users/iqjWHBFdfxIU/invdAc0AgOF8/v2/1200x-1.png)
- Margin calls / Market leverage -- 2011-pressent -- Taiwan stock exchange (Bloomberg)
This is EXACTLY the kind of thing that causes a major financial panic
and crash -- when the market is over-leveraged with margin debt, and
the debts start to unwind.
The Taiwan stock exchange index crashed 9% on Wednesday, due to panic
over unwinding leverage.
We've previously talked about the possibility of a global financial
panic on May 28, about 7 weeks past the end of first quarter. This
may be one step along that path.
Then you'll learn what the word "deflation" really means.
---- Source:
-- Taiwan Stock Crash Shows World Dangers of Too Much Leverage
https://www.bloombergquint.com/markets/t...ons-expiry
(Bloomberg, 12-May-2021)