Significantly, the accumulated effect of these decisions on an institution's risk and liquidity profile may not be noticed until difficult times place pressure on the institution's ongoing funding. Management should keep in mind that the value of the federal subsidy provided by lower-cost insured deposits is rarely appreciated until periods of crisis, when a stable funding base cannot be maintained at any price.
5  For example, Martin, Munyan, and Wilson show that estimates of potential output generated by common filtering techniques tend to revise down following recessions as actual output grows slower than its prerecession trend; see Martin, Munyan, and Wilson, “Potential Output and Recessions,” in note 5.