Nothing like playing with house money.No one loaned them the cash with the expectation of default... Although you are probably correct in stating that the lenders had the expectation of a bail-out by the EU, they would have also known that any bail-out would see the lenders assuming a capital loss (getting 'x' cents on the dollar).
As happened with the U.S. and many other countries after the crash. I understand that the majority of the money involved here came from non-private sources, but the same principle applies. Being backstopped by Uncle encourages fast and loose play, whether you're a gambler, a private bank, or a national (or international) central bank.Curious about this statement though: "the government forcing the people to pay for the f*ck-ups of private businesses"... What/who are the private business' to which you refer?
Specifically, it changes the numbers in a purely mathematical analysis, to say nothing of "perception of risk" issues.