Narrowly structured banking models might actually create more fragility rather than strengthen the system. When you restrict how banks operate, you risk creating instability across the broader financial architecture. It's a counterintuitive trade-off worth examining—tighter controls in one area could unintentionally cascade into systemic vulnerabilities elsewhere.
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CommunityLurker
· 7h ago
The stricter the regulation, the easier it is for problems to occur? I need to think about this logic...
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CascadingDipBuyer
· 7h ago
Damn, this logic is backwards. The more you control it tightly, the more likely it is to collapse...
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DefiSecurityGuard
· 7h ago
ngl this "narrow structure = fragility" take is exactly the kind of reasoning that leads to cascading failures... seen it play out before. ever notice how regulatory capture just shifts the exploit vector to somewhere less monitored? DYOR on systemic risk tbh
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TommyTeacher
· 7h ago
The more regulated, the more fragile; this logic is spot on.
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HodlOrRegret
· 7h ago
Overregulation actually makes collapse more likely; this logic has always been there.
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ChainMelonWatcher
· 7h ago
Isn't this logic backwards? The more regulation, the easier it collapses?
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MerkleMaid
· 8h ago
This logic is backwards—stricter regulation makes it more fragile? That sounds so absurd to me.
Narrowly structured banking models might actually create more fragility rather than strengthen the system. When you restrict how banks operate, you risk creating instability across the broader financial architecture. It's a counterintuitive trade-off worth examining—tighter controls in one area could unintentionally cascade into systemic vulnerabilities elsewhere.