The notion of a Debt Jubilee has come up here before and I’ve pretty much come to the same conclusion. Good article, especially Smith’s last point: “Political expediency is a powerful force for unintended consequences.” – HT
It would be nice is we could place all the inevitable losses as phantom assets are exposed to price discovery on bankers and Elites, but the reality is that these assets are distributed throughout the economy: as these phantom assets vanish, pension funds, insurance companies and other bulwarks of non-Elite wealth/security will have to write off significant portions of their assets.
Citizens will ultimately find their wealth/financial security has been degraded, perhaps severely. It’s tempting to think that a “debt jubiliee” on (for example) student loans would “solve the problem,” but this is not a pain-free solution: the $1 trillion in student loans are someone’s assets, and the “someone” is not necessarily a banker or billionaire: it might be the pension fund that is paying Mom or Dad’s pension.