Earlier quoted context omitted.
I do agree that a safety net is a useful thing to have. But I disagree with the impression from your post that a safety net would have been the preferred solution to this merchant's woes. It would only keep him slightly afloat, compared to being careful about his business, where he could have kept a significant portion of it. The line between being careless and blaming the victim is blurry, so I'm not going to discus…
There's a pandemic on. Up to a third of Americans can't pay their rent/mortgage this year. Some people are taking risks because of the general climate around them. Living steeped in craziness can impair your judgment by making it genuinely difficult to figure out what strategy is actually sensible while the world is a case of "Please, stop this merry go round. I would like to get off now."
What I want to point out is that if he was careful about his business partners, he'd be much better off now. It's not relevant why he wasn't.
He had the agency to mitigate the problem, and didn't. What happened was not an unpreventable natural disaster. The lesson out of this shouldn't be "you don't have agency so we need a safety net", but rather "we often have agency to stay afloat". Perhaps also "we need a safety net for when our bets don't pay off or when we don't".