[Kansas58]

Actually, I see both sides.

I think we need people who refuse to borrow.

I also think we need people who are willing to take huge risks.

However, we do NOT need our government sticking its nose into the process.

Those who fail have bankruptcy court.

There is no shame in an honest bankruptcy.

The government should not mandate risking loans, and the government should not forbid risky loans.

[kenavi]

I also think we need people who are willing to take huge risks.

California has an "anti-deficiency defense" that limits the recourse of the lender to the property whose purchase was financed by the loan. It might not apply to commercial investments like the ones in this situation, but even then customarily the recourse against the borrower is limited.

So this investor's "downside risk" was extremely limited, no wonder so many were ready to risk so much.

Rather than whine, the investor should exclaim: "What a country!"