“Debunking Economics” author and Economist Steve Keen tells The Daily Ticker the U.S. stock market is in a giant debt-fueled bubble. And that years from now we will look back and say “why didn’t people see that?” He explains a couple of key indicators that support this view being the present 22 reading on the Shiller price to earnings ratio (historical average is 14) and the excessive levels of margin debt presently being used by stock holders (now back at levels seen at the market peaks in 2000 and 2007). When margin use peaks the market traditionally breaks. See the video clip here.
Here is a margin balance chart that supports his point.
And here is the present Shiller PE in perspective chart.