I am like a bank
I was reading a Big Picture post about how the banks are unwilling to loan to each other because they don't know who will be standing tomorrow kind of thing.
One of the reasons that I have given in the past for not being in the market is that even though I have thought that there could very well be good companies out there, I don't know what will hit them. They may be a very responsibly operated business, but clients that owe them money may run into trouble, which would then be trouble for them.
"The primary problem is that banks are refusing to extend credit to each other. Why? Because they do not understand the liabilities of their counterparties. Translated into English, that means they don’t know if the other bank whom they are dealing with will still to be standing tomorrow."
I am just like a bank when it comes to my personal investing. I don't know if the business that look good today will be standing tomorrow. Some I can tell won't be standing tomorrow, but just because I can't see a problem today, well, this unwind it hitting everyone and some of the unseen blows are going to be fatal.
I am going to let the dust settle a bit so I can actually see the good stuff in the debris.