Very likely scenario.
I've been a believer in a catastrophic end for fiat money and fractional reserve banking since I was 18. I'm going to be 58 this year.
Man, have I placed a lot of losing bets!
That having been said, this scenario exposes the fraud of calling what people do with paper (of all kinds) the "economy".
The real economy is, or was, inventing, creating, producing, extracting, exploiting, building, and growing.
Those activities ARE the economy.
House flipping and derivative bundling are not.
A restoration of a real economy is a necessity, and perhaps catastrophe (well, not so much, since we'll still have the land, the resources, and the people) is a necessary step along the way.