You know things are tight when the Pentagon has to cancel its Christmas party.

In the New York Times:

Adm. Mike Mullen has taken the unusual step of canceling the large holiday reception held annually by the chairman of the Joint Chiefs of Staff, citing “these trying financial times.”

Instead, the admiral and his wife will host a smaller gathering for wounded service members, their families and survivors of military personnel killed in action.

An invitation list of more than 1,500 – including members of the diplomatic corps, foreign and American military officers, and luminaries from Washington’s national security establishment – were to have been invited to the annual holiday event.

I guess two wars, a trillion dollar plus deficit for next year, and an economy in reverse means even the generals have to tighten up.

Last year Kid Rock played for the party. By pulling the plug on the most sought after party in the military, Mullen is sending a signal down to the lower ranks not to get too extravagant.

I bet Wall Street doesn’t take the cue. They are flush with billions of dollars now. You know that the company’s that have received bailouts are going to be scrutinized by the media in this season of cheer. Maybe Kid Rock will play at AIG this year.