The economists usually freak out right? They say, OMG, all that money once paid to servicing debt can be spent on other things. The economy will heat up. All hell will break lose.
is that the story? (I'm at work and don't have all email, bunch was deleted off server, so may have missed a fuller answer).
<> Doug writes: <> <>> 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 <> <> ___________________________________ <> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk <>
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