When there is about 9 or 10 loans for every 1 fiat currency in reserve. You would think people would understand defaults and bankruptcies being inevitable. The only way someone could pay back a loan would be to depend on another person's loan to pay it back. Ten indebted people all scrambling after 1 currency unit. The only way to get out of debt is to have someone else to get into debt.
As long as the lending does not end, current debtors can always rely on future debtors to ease their means of paying off their present debt. But if the lending were to ever end to future lenders as well. Then there will probably be a rise in defaults.
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