We have never seen so much stock market wealth get wiped out in such a short period of time. Unfortunately, many major players on Wall Street that made a ton of money on the way up were not prepared for a rapid reversal of this magnitude. In an article that I posted on Friday, I wrote that “a lot of financial institutions that are deeply overextended” could quickly “find themselves in a tremendous amount of trouble”, and that is definitely turning out to be quite accurate. All of a sudden, hedge funds are being hit with absolutely enormous margin calls, and this threatens to create a “doom loop” which could potentially push stock prices a whole lot lower.
The panic that we are witnessing on Wall Street right now is very real.
Since January 17th, more than 11 trillion dollars in stock market wealth has been wiped out.
In fact, a…
