The nature of VC is quite different from the nature of the forms of investing that caused the crisis. One of the culprits behind getting the crisis to such a ma

The nature of VC is quite different from the nature of the forms of investing that caused the crisis. One of the culprits behind getting the crisis to such a massive scale is leverage. VC firms rarely leverage their funds due to the highly risky nature. Perhaps PG or someone else could elaborate on the behavior of VC or Angel investors because it's crucial to understanding this distinction. Now contrast the nature of VC vs. what people are thinking about when they put money away for retirement. They're not trying to help get a company off the ground. They're usually just trying to beat inflation and, if possible, get a little more. These people lost money in a huge way. The people responsible lost money in such a huge way that the world is now struggling. The whole world. It is highly unlikely a VC could pull something like this off via their investments. Even the dotcom boom demonstrated how investing ones own money and taking on the risks involved will keep a crisis contained primarily (not exclusively) to those involved. Let's also not forget the SEC has not proven it's abilities to catch bad behavior... Edit: And, simply on principle, I back the notion that the Gov should generally stay out of my business.