> A debt jubilee now would lead to total financial collapse.
> U.S. households alone hold $47 trillion in financial assets.
> Imagine what would happen if even 1/4 of those went poof.
Wait, you're talking about cancelling all assets? I thought we were talking about debt? Household debt was more like $11.5T as of 2Q11? Housing was $8.5T of that, so there's "only" about $3T of unsecured debt.
I still say what needs to happen is greater access to refinancing. That would also incur a hit to bank profits, but it ought to be more orderly -- and frankly, fair.
/jordan