Comments by "Fox" (@tomlxyz) on "The Debt-Fueled Collapse of Korea’s Daewoo Group" video.

  1. They aren't the largest moral harard, they're the ones most likely to engage in such behaviour because they're more likely to be bailed out.
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  2.  @juniorleslie4804  But that's unrelated to moral hazards. Besides that, the size of the debt isn't important either. The only thing important is if the resulting intrest payments exceed the profit margin. If the company is considered low risk they can take out huge loans and still be profitable. On the other side, if the company engages in risky businesses even low debt levels can screw them over because of high intrest rates or creditors becoming restless
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