> I think the libertarian perspective is that we shouldn't have protections that prevent people from making personal choices that result in harm to themselves, but only from harming others.
There are a few ways that someone bankrupting themselves via bad investments does hurt others:
Dependents will be significantly harmed
They are more likely to end up homeless or in jail on the dime of society
They are less likely to be a productive member of society.
I suppose the libertarian response would be that if someone bankrupts themselves, let them die homeless on the street - but I don't think you'll get agreement from any significant portion of society on that approach and even then someone has to pay to clean up their body.
There are a few ways that someone bankrupting themselves via bad investments does hurt others:
Dependents will be significantly harmed
They are more likely to end up homeless or in jail on the dime of society
They are less likely to be a productive member of society.
I suppose the libertarian response would be that if someone bankrupts themselves, let them die homeless on the street - but I don't think you'll get agreement from any significant portion of society on that approach and even then someone has to pay to clean up their body.