And money will flow into the market like manna from heaven.
Are you sure about that? What about the stock investors who have long-term investments with next to nothing for the cost basis? Doesn't this just give them an out to sell the stocks and remove the funds from the stock market?
Replace your word 'remove' with 'reallocate' and there you have the genius of the plan. The market, when unfettered by regulation, ALWAYS allocates resources where most needed.
If you as an investor sell stocks to another investor, the funds that you took "out of" the stock market were replaced by the funds that another investor put "into" the stock market.