Saw this quote and just couldn't resist posting it.
Trust was shaken today. Credit depends on trust. If trust disappears, then credit disappears, and you have a systemic issue."-----THOMAS MAYER, chief European economist at Deutsche Bank in Frankfurt, on yesterday's market turmoil.
See the problem is, and I learned this in college, where men learn all things to do with cleaning and personal responsiblity, when you grind up a tortilla chip until you can't see the pieces which drift to the carpet. It's not gone. Its still there, and eventually the worlds most resiliant creatures come to feast; the cockroaches. We've been granularizing the risk so as to be so small that we cannot measure it. But it's still there. The bigger problem is that now, it's much harder to cleanup and is much more subject to the whims of emotion and waves of the flashmob.
I'm out of the market, except for some stakes in real estate a couple of private companies (which I'm hoping to sell) and preparing to get into the secondaries market.
Eventually, there'll be a bounce and I am to capitalize; but it could get a LOT worse before it gets better..
Originally posted on rxdxt.vox.com
Comments