DOW 5,000 CALL -- Market Strategist David Hefty Warns With $17 Trillion Of Leverage In The System, Margin Calls To Hedge Funds Could Trigger Panic (WATCH)

May 20, 2010 at 2:00 PM
DailyBail in 000, cnbc video, david hefty, dow 5, stock market, stock market, video

Video: David Hefty on CNBC -- May 17, 2010 

•  “The Dow 5,000 piece is very likely—that’s not even the extreme low.  It only takes a few hedge funds to get that margin call."

• "When they start to sell—and the fact that everyone’s on pins and needles—that’s where the freefall starts to take place, like oil back in 2008."

• "When you look at the fact that we have $17 trillion of leverage inside the financial system and when you look at debt around the world, our financial system has more debt than anything else."

• "We are in the eleventh year of a secular bear market and still trying to deleverage “the big bubble” that started in 1994."

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UPDATE:  We've added a second clip from David Hefty from May 13.

Video:  Purdue graduate David Hefty on CNBC -- May 13, 2010

CNBC Story  >>

 

 

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Article originally appeared on The Daily Bail (http://dailybail.com/).