The ECB and the Fed keep referring to sound and resilient conditions in banking as they obviously need to. Beneath the surface, a cocktail of mediocre regulation, bizarre incentives and complacent authorities is likely to guide us into a continued bank crisis until rates come down. Here is why!
![Macro Watch: The one on regulation, FDIC incentives and cutting cycles](https://stenoresearch.com/wp-content/uploads/2023/01/WS-Asset-Allocation-1080x675.png)