I would prefer debt forgiveness……
Debt moratoriums would probably bankrupt the big banks.
Sounds like a plan!
But since the big banks borrow at 0% interest and lend at between 4% and 29% little money would be lost except for their overhead. So we unemploy a few thousand bankers.
Serve them right!
Oh, and widespread debt forgiveness (or inflating away some of the debt) would solve the problem.
But what we actually have is a climate in which it’s considered sensible to demand fiscal austerity from everyone; to reject unconventional monetary policy as unsound; and of course to denounce any help for debtors as morally reprehensible. So we’re in a world in which Very Serious People demand that debtors spend less than their income, but that nobody else spend more than their income.
And the slump goes on.