IF party A is counting on party B to reimburse them for losses, and party B says, "I don't have the money to do this" I would think party A is up the creek.
Cheers!
Yup, but the economy in aggregate doesn’t care if you have money (Party A) or if I have that money (Party B).
Moving the same money from Party A to Party B creates no new wealth, and destroys no old wealth.
Such a move is financially neutral to the economy. Oh sure, Party A and B care, but not the whole economy.
That’s derivatives. The economy doesn’t care about economically neutral actions.