LEVERAGE BACK TO PRE-CRISIS LEVELS

"As of the end of 2010, hedge funds have increased leverage to within 10 percent of pre-credit levels, according to a report from UBS Prime Brokerage Services and have likely increased risk up even more to start this year, traders said.

Gross leverage for funds has climbed 43 percent from the bottom reached after the collapse of Lehman Brothers in 2008 and is up 13 percent in 2010, according to UBS. Risk-taking surged in the second half of the year as hedge funds scrambled to avoid the fate of another year of underperforming the S&P 500 [.SPX 1283.76 --- UNCH (0) ] and as the Federal Reserve signaled it was ready to flood the market with more liquidity through its second round of quantitative easing. "

The good ship lolipop are ALL tucked into the bullish fold with all kinds of leverage ALL pointing in the direction, and all the experts polled are ALL bullish and STOCKS can ONLY go UP.

D