Is there any kind of reasoning process like “this institution has many other creditors so it is unlikely that I will get nothing in case of default?”
Yes, and this sort of behavior creates Too Big To Fail dynamics, which break the connection between long-run financial success and producing things people want more than the cost of production.
Yes, and this sort of behavior creates Too Big To Fail dynamics, which break the connection between long-run financial success and producing things people want more than the cost of production.