The stock market drop yesterday essentially translates into a loss of $1.3 trillion in wealth and I had the good fortune to capture profits on FAZ holdings and, as always, I buy long and sell short (via calls on ETFs) so I continue to make money in the market.   Where do we go from here?

I see Dow 10,000 in the future but don’t go betting your money on it just yet since the Fed seems to be poised to go QE3 and I just got a balance check transfer from a credit card company offering 0% for 12 months and a 1% transfer fee.   These are generous terms and banks are clearly wanting to hook people on easy money again.    I may take up the credit card company on the offer and pull $20,000.   At 1% fee, that’s a $200 fee but I’ll probably use the money to pay off my student loans and convert undischargeable debt into unsecured debt which can be discharged in a worst case bankruptcy scenario!

The best thing to do is continue to pay down secured debt and sit tight on cash.   My reserves are currently in the 60k range with additional emergency reserves stashed here and there and credit lines of another 100k.