Some people work in jibs where they need to get it right every time. Pilots need to get it right every time. Hamburger flipper need to get right and cook the patties. There are many examples of professions in which people need to get it right every time. Venture capitalists and traders WILL NOT get it right every time. They just need to make more money when they are right than they lose when they are wrong. People in the pilot/hamburger flipper category might not understand the nature of some free market activities. People in sales might understand this.
In other words venture capitalists might make things worse and do things economically inefficient a large number of times - that doesn’t mean they are bad. That means they need to do really well on other times to make up for it.
Intentionally over-borrowing knowing that your objective is to sock away fees while paying creditors pennies on the dollar is not free market capitalism. It is corruption.