That chart (and many from FRED) is unfortunately not useful without viewing it on a logarithmic scale. Things can look quite parabolic in a linear space, but exponential growth is quite normal in many financial contexts.
replyClick "edit graph" and change units to "natural log". Now look again. You'll see that the growth in margin loans is absolutely normal, and actually has only recently recovered from the dip caused by the 2008 financial crisis.
> change units to "natural log"
replyGreat tip, but I didn't see "natural log" specifically. Perhaps "Compounded rate of change" is most applicable? That's still mostly above 0 historically, indicating margin usage is ever-increasing. The helpful graph would be margin usage as a weighted percentage of market participation.
Natural log is in there - I just tried it myself. It's the second selection from the bottom in the "Units" dropdown.
reply$600+ billion doesn't seem like much. I was expecting more tbh.
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