The same pattern repeats in financial markets, companies, and life in general: stamping out the small stressors that act as natural fire breaks only makes us more vulnerable when the Big One comes along. We would be better off letting banks fail early, refusing to protect the feelings of the over-sensitive, and taking small shocks at regular intervals. Instead, we put sticking plasters over festering wounds, and suppress volatility with a patchwork of kludges that create bigger problems down the track.
