Much has been made of QE2 (the double reason be a buyer...the market goes up if the economy improves and the market goes up if the Fed steps in to prop the economy if it is failing). Thus not many motivated to buy puts... forcing VXX to the cheap. As Act 2 of the mortgage debacle comes to light, (who really holds your mortgage and who really owns the title due to all the derivatives)...2008 look like a walk in the park. Mortgage back securities and the legal components will shake the financial and government holdings, and when they do...you won't beable to find a cheap put (that is if the gov't doesn't forbit a put...i.e. Germany. Thus VXX will rise exponentially with the spread. Happy investing!!