Greed is a part of it, but I think stupid is a better word. You can’t read a decent financial publication for more than 10 minutes without stumbling into a discussion of diversification. Why people put their entire nest egg into a hedge fund is beyond me.
Why didn’t these idiots just put at least part of their money in Treasuries? Because they wanted a better return on their money.
Part of it is the government’s fault for not creating an environment where there are better returns.