The government will eventually realize that the defaulted loans, together with penalties and fees, can never be paid back - no different than the typical house flippers of 2008 who leveraged themselves to the hilt with multiple properties.<p>The banks and funds that own these defaulted loans will threaten to take down the whole system, including Main Street&#x27;s pension and IRA savings, unless they&#x27;re bailed out. The Fed&#x27;s printing machine will come to the rescue.<p>Loans won&#x27;t be &#x27;forgiven&#x27; per se, but just like many defaulted mortgages, the debt will simply not be enforced for those that have the balls to simply stop paying, though life will be a PITA for a while as their credit takes a huge hit for the next decade.<p>Those that do continue to pay will feel like suckers. The rest of us will curse the lazy bums who got off without paying. Wall Street execs will be handsomely rewarded for having saved their firms from catastrophe, while politicians will preach of reform, only to pass watered-down laws to appear proactive.<p>Due to the money printing, the average American will see his quality of life decrease relative to the rest of the world; meanwhile, Wall Street will begin moving money into the next hot idea that can be leveraged with no risk to themselves.