There is no economic benefit here. They were not paying them anyway so they are not now going out and putting down payments on cars or houses. Like a firm buying it’s preferred stock back with borrowed money. The balance sheet moves the amount from equity to debt. No other change in its business except future borrowing will cost higher interest.
When the news showed squint eyes talking about this last evening I became so enraged my wife clicked off the TV. I told her I am hopefully too old to be here for the recasting of our nation after bankruptcy but I feel awful for our descendants who will be impoverished third world people after it. Unfortunately most of them are too naive to consider it.
To the so-called rich, there are no recessions and no inflation. The elite manipulate the politicians who screw the middle class, the masses.