[yuliyp]

The problem with this is principal-agent problems. The owners of the business don't want it to fail. The people working there want to make money. They generally live their life and enjoy what money they make before the chickens come home to roost. It can be hard for the owners to realize the business is fragile before that fragility becomes apparent. In the mean time the people running the business made a bunch of money, potentially jumped to other jobs or retired or died.

And the owners could have sold when the business was propped up by unknown fragility.

Human lives are too short for these kinds of feedback loops to be all that effective.