Extreme default risk makes rational profit calculation impossible.

Evidence

Rational calculation of profit under these circumstances is virtually impossible, leading to an atmosphere of windfall and catastrophe which is not conducive to sustained accumulation. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 2380

Categorization

• XREF: Echoes Knightian uncertainty — unmeasurable risk blocks rational calculation, linking to trust theory. — connects to: Flood insurance cannot be actuarially self-supporting because risk is unpredictable — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process: Basic Problems in…, 1781