Trillions in Bad Loans May Sap World Economy for a Long Time
Why not forgive the loans? The negative affect of debt on people&#x27;s capacity to contribute to the world economy is high, and I think it stands to reason that people would contribute more for the duration of paying off their loan if the loan wasn&#x27;t hanging over their head.<p>The banks would scream bloody murder, obviously, but their slack policies got us into this mess in the first place.<p>The intention is to throw people a rope to save them from drowning, but the rope is ending up as a noose around their neck more than anything else. The government&#x27;s may have had good intentions in their support for the proliferation of subprime lending, but I think it would&#x27;ve been more effective to <i>just give people money</i> without the expectation that they pay it back directly. It will find its way back into the economy as, so to speak, <i>trickle up economics</i>.