Years ago it seemed that people may get leverage on their stock market investments by borrowing to invest. Borrowing is one and the same thing as creating money. This is a perfect recipe for an ABCT type bubble in share prices.
These days however, I get the impression that investors get their leverage through derivatives, i.e. they are just taking bets on share price movenments. There is no need for any money to be borrowed. Does this mean that it is now much harder to get an ABCT style stock price bubble?
Or to put it another way, why would anyone want to borrow money in order to get leverage, and have to pay interest on that borrowed money, when they could just as easily get leverage by other means?