On Oct 5, 2011, at 10:57 AM, Michael Pollak wrote:
> On Wed, 5 Oct 2011, Doug Henwood wrote:
>
>>> Let's wipe the debt of the 99 percent off the books, tell the financial sector to eat it, and get on with our lives.
>>
>> And we'll cope with the bank failures later. FDR did it!
>
> Ha. I assume that in the alternative universe where this would happen, the government would be glad to capitalize any banks who needed it by buying shares.
Household debt is almost $14 trillion, or about 100% of GDP. Of that, almost $10 trillion is mortgage and another $2.4 trillion is consumer (credit cards, auto loans, etc.). That might be a stretch for the USG to handle.
Doug