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America's Double Debt Dilemma: Margin Bets and Maxed-Out Cards - Tesla (NASDAQ:TSLA)
TeslaTesla(US:TSLA) Benzinga·2025-10-20 19:10

U.S. margin debt has surged to a record $1.1 trillion, an increase of $67 billion in September alone. Despite markets at all-time highs, investors are borrowing to buy more. But behind the headline number lies a deeper question –  How much leverage can the system bear?Margin debt is the money investors borrow from brokers to amplify their bets. If their investments rise, it magnifies the gains. But, if prices fall losses accelerate. Furthermore, if they fall far enough, brokers issue margin calls, forcing i ...