GLBSE is one unforeseen correlated risk. Another is that a large number of borrowers were actually borrowing to invest in Pirate and thus many loans would go bad if Pirate went bad. This was especially disastrous because many people assumed they could use these kinds of loan portfolios specifically to diversify themselves against Pirate exposure. Hashking was a similar issue -- people specifically expected to use him to diversify to protect against Pirate exposure but actually only got themselves more Pirate exposure. It's possible that GLBSE's collapse is actually tied to the PPT collapse. So it may all tie back to unforeseen Pirate exposure.

It's the depositors' fault because they refused to appreciate this risk even while folks like me were screaming in their faces that they were idiots to invest with Patrick because of these kinds of risks. And it's Patrick's fault because he continued to take deposits and make loans even while folks like me were screaming in his face that his business model made no sense. There is equal fault on both sides, I think.