However, the uncertainty and fear in the market has also created inefficiencies that can be taken advantage of by traders. Bank loans being guaranteed and LIBOR at +300 basis points to the fed funds was a no-brainer. 700 billion for financials yet the XLF was under 10 and the UYG was under 4. Was every bank in the country going to fail? 4 dollars is a call option without an expiration date. The VIX above 80, sell some premium, obviously no one else wants to. The two-year trading at the target rate, 1% currently, really?

My point is that there is money to be made. Many of the so-called geniuses of La Salle and Jackson simply played the late 70s inflation, got rich, wrote books, and gave seminars on how they did it. Some guy on TV said recently, “trade the market you have, not the one you want.” I don’t know his name but it makes a lot of sense even though it reminds me of Rumsfeld’s ‘the army you have’ statement.

I drove my mom to Wal-Mart the other day, we took her car because she has handicapped plates and I knew we wouldn’t be able to find a spot any where near the building. Liz is right, it’s not the 30s and every bank in the country is not going to fail. There will be a Christmas even if it’s more of a Wal-Mart/Target Christmas than a Nieman Marcus/Saks Fifth Avenue Christmas. So this year I’m thankful for what we have not what I want.

pans out to be 9 words.