At the end of July 2017, margin debt on the New York Stock Exchange reached an all-time high of $550 Billion.
Prior to the 2007 market correction, NYSE margin debt peaked at 2.63% of GDP. In 2000 margin debt peaked at 2.78%.
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NYSE margin debt to GDP now stands at 2.86%.
As the Fed prepares to reduce their holdings of Treasuries and MBS securities on its balance sheet, we may start to see tightening credit conditions in the U.S financial markets and a general withdrawal of market stimulus from the BOJ and the ECB.
