No one would associate with an investment, that, if gone awry, would ruin them financially.
One thing we've learned in this crisis is that leverage causes companies that appear healthy to go under very very quickly. So you're saying that people would steer clear of investments that might ruin them financially? Fine. You've just killed off our entire financial industry, our real estate industry, and a good portion of other industries that rely on leverage to do business.
In case you didn't notice, these industries have serious flaws (caused by many things we won't get into here), that leverage magnifies.
Besides, there's still no legal basis for llcs, just convention.
That's what leverage does: it magnifies. That doesn't mean that these industries are inherently bad. We need a strong banking system and a strong real estate industry.
And what do you mean about no legal basis for LLCs? I'm pretty sure every state has a legal basis for LLCs.
One thing we've learned in this crisis is that leverage causes companies that appear healthy to go under very very quickly. So you're saying that people would steer clear of investments that might ruin them financially? Fine. You've just killed off our entire financial industry, our real estate industry, and a good portion of other industries that rely on leverage to do business.