Tuesday, December 20, 2011

Art Cashin reminds us that Yes Virginia, there is a Santa Claus Rally

Over the past few days, the chances became more unlikely that the markets would engineer that fabled 'Santa Claus Rally' that investors look forward to just before the Christmas break.  However, something magical happened on December 20th, and the old fat elf made it just in time to fulfill Virginia's desire to know if Santa was real.

Here is the original letter from 8 year old Virginia to the New York Sun in 1897, as provided by UBS's Art Cashin.

A Needed Seasonal Note - As we all hopefully recall, young Virginia O’Hanlon wrote to the New York Sun in 1897 to inquire if there really was a Santa Claus. Herewith - the letter and response.

DEAR EDITOR: I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, 'If you see it in THE SUN it's so.' Please tell me the truth; is there a Santa Claus?


VIRGINIA, your little friends are wrong. They have been affected by the skepticism of a skeptical age. They do not believe except [what] they see. They think that nothing can be which is not comprehensible by their little minds. All minds, Virginia, whether they be men's or children's, are little. In this great universe of ours man is a mere insect, an ant, in his intellect, as compared with the boundless world about him, as measured by the intelligence capable of grasping the whole of truth and knowledge.

Yes, VIRGINIA, there is a Santa Claus. He exists as certainly as love and generosity and devotion exist, and you know that they abound and give to your life its highest beauty and joy. Alas! how dreary would be the world if there were no Santa Claus. It would be as dreary as if there were no VIRGINIAS. There would be no childlike faith then, no poetry, no romance to make tolerable this existence. We should have no enjoyment, except in sense and sight. The eternal light with which childhood fills the world would be extinguished.

Not believe in Santa Claus! You might as well not believe in fairies! You might get your papa to hire men to watch in all the chimneys on Christmas Eve to catch Santa Claus, but even if they did not see Santa Claus coming down, what would that prove? Nobody sees Santa Claus, but that is no sign that there is no Santa Claus. The most real things in the world are those that neither children nor men can see. Did you ever see fairies dancing on the lawn? Of course not, but that's no proof that they are not there. Nobody can conceive or imagine all the wonders there are unseen and unseeable in the world.

You may tear apart the baby's rattle and see what makes the noise inside, but there is a veil covering the unseen world which not the strongest man, nor even the united strength of all the strongest men that ever lived, could tear apart. Only faith, fancy, poetry, love, romance, can push aside that curtain and view and picture the supernal beauty and glory beyond. Is it all real? Ah, VIRGINIA, in all this world there is nothing else real and abiding.

No Santa Claus! Thank God! he lives, and he lives forever. A thousand years from now, Virginia, nay, ten times ten thousand years from now, he will continue to make glad the heart of childhood.

Today, central banks and planners are Santa Claus, and they made sure investors didn't go home hungry before Christmas, thus continuing the belief that each year, around this time, a computer somewhere with a red elf hat on is doling out fake bids to prop up the markets, and bring the 1%ers a little Yuletide cheer.


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