Clearly, as Morris and Shin point out, what we have learned about various risks implies the need for intermediaries to build greater liquidity and capital buffers in good times, as well as to improve their abilities to manage their risks. And those larger buffers would help to offset the moral hazard that may have been created through the expansion of our liquidity facilities.
Getting the micro-prudential piece right – having each institution adequately protected – would go a long way toward making the whole system more robust and resilient.