Post Ax8QX7rWsY2wZUSx84 by interfluidity@zirk.us
 (DIR) More posts by interfluidity@zirk.us
 (DIR) Post #Ax8PWNUJCM6OmzgTrs by interfluidity@zirk.us
       2025-08-13T18:00:23Z
       
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       the natural lifecycle of an asset class is 1. succeed unconventionally2. fail conventionally3. bailout4. enjoy state backing and stabilization indefinitely
       
 (DIR) Post #Ax8Q7MfbCaasy1bNJY by gl33p@mastodon.social
       2025-08-13T18:06:59Z
       
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       @interfluidity It feels like "stabilization" is increasingly optional 🤔
       
 (DIR) Post #Ax8QX7rWsY2wZUSx84 by interfluidity@zirk.us
       2025-08-13T18:11:43Z
       
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       @gl33p (have you seen what the S&P 500 is doing, after a brief flirtation with rationality in April? or the reemergence of GFC-style special purpose vehicles by the Fed to save the banks in 2020? then de facto insuring all deposits during the Silicon Valley Bank crisis in 2023? maybe things change under the chaos monkey, but so far i think stabilizing finance has remained a lodestar.)
       
 (DIR) Post #Ax8TdrlhPjrcXve27M by gl33p@mastodon.social
       2025-08-13T18:46:32Z
       
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       @interfluidity Fair enough! I guess I was looking at our reality (of really almost any effervescent fresh asset class since great moderation) as one of serial fails with firm and correct expectations of bail, within each class.Which is absolutely stabilization, and also arguably not stability.
       
 (DIR) Post #Ax8hGJuUWxuqEcQKem by interfluidity@zirk.us
       2025-08-13T21:19:10Z
       
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       @gl33p Yes! There are real tensions between stabilization and stability! (This was a major theme of the blog macroresilience, which was excellent.)
       
 (DIR) Post #Ax8xdGfMMAvy6IJI1o by gl33p@mastodon.social
       2025-08-14T00:22:33Z
       
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       @interfluidity I used to really appreciate Ashwin's posts, back in those gentle Twitter days between, oh, let's say the GFC and Full Fascism.But yeah I first misread your point 4 as the asset class getting, like, Actually Regulated into stability (vs more or less getting added to the growing menagerie of creatures allowed to rely on the backstop, occasionally cycling betwixt 2 & 3)I'm sure there will be no price to pay ever for the fragility this sort of approach must be tucking...somewhere.