...and presumably could insure privately against it as happens the other way now - we are pretty well forced to take insurance out on loans for the bank's benefit.

Anyhow, the point of the two videos was that in my opinion, it is far more important to realize there is a problem (which both say is never discussed, which is true) that necessarily for any one individual or group to have the perfect solution. However, I'd suggest that all the proposed solutions are better than the current system, which is organized fraud on the grandest of scales.