The scary part of it Risk, I'm speaking the truth. Of course the same could be said about guys on the floor. The difference is, guys on the floor were trading with edge. They weren't on a screen taking shots. This is one of the reasons why our firm is small. We know every one of our traders and their behavior and their character. We have a good group of guys. But no way could you just do this on a retail level where everyone is known only by their account number. Won't happen.
The big investment banks creating millions/billions in OTC derivatives poses far more systemic risk than Joe six-pack, who, IMO, should have every right to blow every penny he has and then some in the options market.
You would feel quite differently if Joe six-pack's blow up cost you money as well which it coudl if they had access to pooled money...