Implicit government guarantees (too-big-to-fail) are a critical amplifier of crises, linked to the debt story: if you get a great return in good states of nature and are bailed out in bad states, your willingness to borrow and take risk rises—corroborated by the fact that private debt before a crisis often becomes public debt afterward.
causalpending
Speaker
Carmen ReinhartEvidence Quote
“the issues of implicit guarantees at Charlies making you senator is a terribly important one it is very linked to to to our death story”
Created: 6/15/2026, 9:20:19 AM
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