“In an extreme case, the central bank is caught in a near-irresoluble dilemma. Either it disregards its price stability mandate and counters a destabilising increase in government financing costs by further massive government bond buying regardless of the inflation outlook, or it risks a sovereign debt crisis.”

They also touch upon one of our leading pet peeves, being the advocacy of maintaining a policy to offset fragility that is a direct result of said policy. As in, wildfire prevention policies creating so much fire risk that you have no choice but to maintain the pursuit of wildfire prevention policies.

https://convex-strategies.com/2024/02/16/risk-update-january-2024-butterfly-effect/

“This is precisely how crises materialise. Too many wannabe casino operators get too complacent in competing to sell infinite expected loss games at ever-lower upfront prices due to an overly short term, probability based, no personal accountability, business model.