Where is all Mr. BURNanke’s money hiding?...

This chart is showing that people have been borrowing more and more money but generating less and less return with it. It is also showing that, predominantly, borrowings used for trading have gone into long positions without dramatic increases in short interest. Additionally, the balances in trading accounts has setup a bear flag and overall has already started turning down. Short interest has setup a continuation flag that looks like it will breakout soon.

According to officials, what you see before you is just what the doctor ordered: Greater risk taking, lower reward and black swan susceptible deleveraging just a sneeze away. Cough, cough..

Interestingly, 82% of investors think March will be up and 60% think next week will be up...I am guessing they are at 120% margin...

Click on chart to see in more detail…

as a note: I have upto-date short interest numbers and margin numbers as of Jan and Feb…most of the NYSE margin charts are still showing December data.