Comment by s17n

Without regulation, financial systems follow a predictable boom/bust cycle, and in the "bust" phase, there's not much that any individual can do to avoid getting wiped out by cascades of counterparty default.

So, the only reasonable move for an individual is, simply don't participate in the system in the first place, keep your money in the mattress. (Crypto equivalent: hold your own coins).

The problem is, credit actually creates real economic growth. A society that encourages credit via regulation will outcompete a society that leaves it to an unregulated marketplace (and thus disincentivizes individuals from participating).