That’s what it feels like watching the markets. The Economist offered a suitably scary briefing for Halloween: Spooking Investors – Financial markets remain on edge because the credit crunch has not been solved. While we know there are credit problems throughout the banking system, we don’t know how big or where they are. And stock markets remain rather more optimistic than data would suggest. I certainly feel as Greenspan recently described the markets “in a state of fear”. It feels as if one is walking along a cliff edge, the path is undulating, sometimes up, sometimes down, but nothing too drastic. But on the side is a massive drop, a financial precipice. If you have not yet informed yourself of the multiple liabilities stemming from loose credit over the past 5 years, have a look at the linked article. Otherwise, make sure you have something to hold on to in case markets get pushed over the edge.