I understood Patrick's guarantee to mean that my funds were guaranteed regardless of whether any or all loans went bad, correlated or uncorrelated. Any other kind of guarantee isn't a guarantee, it's pointless.
I don't believe you. If you have any evidence to suggest that you understood that there was a real risk that the loans were correlated, and that this risk was allocated to Patrick, please present it. All the evidence I have suggests that people either never considered that risk or rejected it as implausible. If you have any evidence that might change my mind, I'd be glad to take a look at it.
Yeah, it would be hard to prove what people in general perceived at some point in the past, though I'm not sure the burden is on the lender to prove their historical beliefs. FWIW, I certainly thought most loans would be correllated, regardless of "pirate exposure". That kind of high interest loans couldn't likely have diverse destinations. I admit that I considered there was a high-risk of this sort of thing happening but assumed the borrowers were prepared to pay out of their pockets. I certainly thought they should, even if they wouldn't.
At some point in time about every non-PPT asset issuer (including Patrick) has been accused of investing in pirate secretly, or having much higher indirect exposure than expected. The dependence on pirate has been discussed on this board repeatedly. The possible correlation of a lot of investments is a logical conclusion, which is hard to assume has not happened in the minds of at least some investors.