How is this going to work? Lenders aren’t going to magically write down all these loans? Remember how long it took lenders to write off non-performing mortgage loans? Years and years. They couldn’t afford to write them all off at once; otherwise they would all look insolvent.
So, the government (repeat with me now: ‘We’re here to help you’) will have to step in and guarantee/pay off some, if not all, of the debt. This will be a bailout on a high order.
And where will all this forgiveness come from, dear reader? Why, out of the pocket of you and me and every other responsible, law-abiding citizen, that’s who.
Free handouts are only free to the recipient.