US stocks continue risk-off, margin calls driving market declines

US regulators activated "circuit breakers" in stocks designed to limit losses for the NY Stock Exchange & NASDAQ. Both exchanges were set to open with 5% losses this morning, as investors continue to hoard cash. The market sell-off is global, with Japan's stock Nikkei Index down over 5.6% and the German DAX down nearly 8% on the day. Margin calls are forcing the liquidation of many bellwether stocks to cover losses in other areas, creating a vicious cycle of selling.

As of Friday last week, over 20% of market positions held by institutional investors (banks, hedge funds, pension funds etc) were based on margin - money borrowed to purchase stocks or futures positions, with other stocks pledged as collateral. As stocks begin to decline, the lenders (typically large investment banks or stock brokerages) make a margin call, which automatically forces the sale of the stocks that are the collateral for the loan, to cover the losses of the stocks purchased by the loan.

This forced-selling leads to further stock market declines, and then even more stocks must be sold to cover other stocks held on margin - that is, stocks which had been purchased via loans that must now be paid back. Investment banks typically accept only higher-quality assets and stocks as collateral: Bellwether stocks such as the DOW Jones, Fortune 100 type companies, or other "safe" assets such as gold, silver, even commodities like oil and natural gas, etc.

All assets seem to decline at once, but much of it is because algorithms are causing the forced sale of assets to cover the 20% of the market that was purchased based on margin loans, which now need to be covered.

Sen. Ted Cruz: NOBODY should be afraid of Trump's Supreme Court justice pick

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Sen. Ted Cruz (R-Texas) joined Glenn Beck on the radio program Wednesday to weigh in on President Donald Trump's potential Supreme Court nominees and talk about his timely new book, "One Vote Away: How a Single Supreme Court Seat Can Change History."

Sen. Cruz argued that, while Congressional Democrats are outraged over President Trump's chance at a third court appointment, no one on either side should be afraid of a Supreme Court justice being appointed if it's done according to the founding documents. That's why it's crucial that the GOP fills the vacant seat with a true constitutionalist.

Watch the video below to hear the conversation:

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Sen. Mike Lee (R-Utah) joined Glenn Beck on the radio program Wednesday to talk about why he believes President Donald Trump will nominate Judge Amy Coney Barrett to fill the Supreme Court vacancy created by Justice Ruth Bader Ginsburg's death.

Lee, a member of the Senate Judiciary Committee that will consider and vote on the nominee, also weighed in on another Supreme Court contender: Judge Barbara Lagoa. Lee said he would not be comfortable confirming Lagoa without learning more about her history as it pertains to upholding the U.S. Constitution.

Watch the video below to hear the conversation:

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This week on the Glenn Beck Podcast, Glenn spoke with Vox co-founder Matthew Yglesias about his new book, "One Billion Americans: The Case for Thinking Bigger."

Matthew and Glenn agree that, while conservatives and liberals may disagree on a lot, we're not as far apart as some make it seem. If we truly want America to continue doing great things, we must spend less time fighting amongst ourselves.

Watch a clip from the full interview with Matthew Yglesias below:


Find the full podcast on Glenn's YouTube channel or on Blaze Media's podcast network.

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'A convenient boogeyman for misinformation artists': Why is the New York Times defending George Soros?

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On the "Glenn Beck Radio Program" Tuesday, Glenn discussed the details of a recent New York Times article that claims left-wing billionaire financier George Soros "has become a convenient boogeyman for misinformation artists who have falsely claimed that he funds spontaneous Black Lives Matter protests as well as antifa, the decentralized and largely online, far-left activist network that opposes President Trump."

The Times article followed last week's bizarre Fox News segment in which former House Speaker Newt Gingrich appeared to be censored for criticizing Soros (read more here). The article also labeled Glenn a "conspiracy theorist" for his tweet supporting Gingrich.

Watch the video clip below for details:


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