Feb. 24 (Bloomberg) -- Hedge funds increased their net leverage in January to the highest level since October 2007, as they took advantage of record-low borrowing costs to bet that the U.S. equity rally will continue. Debt at margin accounts at the New York Stock Exchange minus cash and unused credit from margin accounts climbed to $46 billion, according to data released by NYSE yesterday. Hedge funds had $290 billion of debt from margin accounts in December, the largest sum since Lehman Brothers Holdings Inc. collapsed in September 2008. âIt makes a lot of sense given the low cost of borrowing and some equitiesâ valuations,â said Patrick Armstrong, who helps manage $356 million in multiasset strategies at Armstrong Investment Managers LLP in London. âThere is a capital- structure arbitrage to be made by buying stocks with leverage.â http://noir.bloomberg.com/apps/news?pid=20601087&sid=a.zOaZV1dx10&pos=5 MurphyÂ´s law: this will end in disaster! I think uncle helicopter Ben and his braniacs forgot abou geopolitics when they thought about their idiotic plan to "inflate" not only the US but every other country out there, too. My regards, Ben, you are the WORST central bankster ever born!