You can make a potion to "Fortify Enchanting" and you can enchant an item to improve potions. Can that be exploited? (Make an item to "Improve potions", then make a stronger "Fortify Enchanting" potion, then use the potion to make an even stronger "Improve potions" item, then just keep repeating until you have better stuff). I don't know if it works like that example though.

It does work like that. problem is that it breaks the game after a point. I decided to not cycle the exploit and just use the first set.

You can go back and forth between the enchanting alter and the alchemy table doing this, then when you get bored you make a set of fortify smithing clothes and a fortify smithing potion and you'll be unstoppable. That pretty much takes all the fun out of the game.

Yep made this thread week ago.

It's stops pretty fast, an master enchanter with all perks can enchant skills to +25%,
With master level alchemy and relevant perks you can make an +32% fortify enchant potion however it only take skills up to +29%, the +148% smithing potion is more useful. so with 80% fire and frost resist potions.
And yes you get serious powerful, do not put any points in health, use light armor, forsworn, leather or similar and play on master and you still dies a lot.

You can also make fortify restoration potions and drink them, take of an on enchanted gear and the effect stacks, yes this will ruin your game as you can make +100.000 potions and enchants.

Diminishing returns.