Might be a product of the generous bankruptcy system in the US. I.e., investors are rational in their willingness to take big risks because of the asymmetric pa

Might be a product of the generous bankruptcy system in the US. I.e., investors are rational in their willingness to take big risks because of the asymmetric payoff associated with highly-leveraged investing. It's a great system, but not without negative unintended consequences such as this kind of moral hazard.