I don't think it's that crazy, just totally different from what we expect. It would make sure that those who make the risks actually PAY for the risk should it sour. The type of leverage that you talk about is irresponsible when it is associated with bad assets, like sub primes. Don't assume that they could go after all you're worth, either. No one would associate with an investment, that, if gone awry, would ruin them financially. The point is that liability would be determined on the market between individuals, and there wouldn't be a one size fits all LLC.