Banks still have not been foreclosing on underwater homes from the 2006-08 crash. Goes without saying they have not been paying taxes either. Worthless nephew was recently foreclosed on in WA after 4 years without paying.
Banks won't be able to foreclose after the next one either. Tier 1 reserve requirements are 5% and they are pretending their balance sheets have this. The bad loans will blow banks out of the water. This is the major reason Japan has stagnated for the last 20 years. They never cleared out bad loans from the system and ate their citizens savings instead. The good/bad thing is we don't have that luxury/time the Japanese wasted along with the growing percentage of elderly’s savings. Think they will newed their Yen back?
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While your numbers are correct the deficit will be taken care of with inflation, the plan all along. The central banks hold more of a percentage of American money than at any time in the history of our country. Once we have hyper or even high inflation the percentage of bad debts from underwater homes will be substantially reduced simply because the homes will still be valued in old dollars. When it takes 3 million dollars to buy a house the $200000.00 owed on it will seem like chump change to the bank.
There are protections against that, the bank owns the mortgage not the home and the house will supposedly be sold at auction, so that when a $200000 house sells at a give away price of 2-1/2 million the banks will clean off their books, oh and nobody but the banks will have money to buy.