He played businessman and lost a lot of his and others’ money. Private debt. It’s private debt that did most of the crash in 2009. Govt debt is nothing by comparison.
I’m serious though. Joe Shmoe defaults on home, bank stuck with a property and house and $250,000 to recoup.
That’s 136,000 defaulted mortgages by one person. There’s more in real estate just like him. But we always blame the family with one home, just scraping by.
Alan Greenspan’s fix was pure Ayn Rand fix: Make it easy but put ALL of the responsibility on the lendee. But without consumer protections in place, disaster was sure to follow and did.