True.
However, it seems likely to me that attempting to maintain the present system without modification is likely to be the worst of all possible economic policies. It is the assumption we can keep kicking the can down the road forever. Which just means that when the inevitable crash comes, it will be even bigger.
I would dearly love to see some non-ideological discussion by economists of the least destructive way to get out of this mess. Haven’t seen any.
This sort of thing has happened on a regional or stae level many times before. It’s the scale of it, as well as complicity on behalf of bad actors in the financial sector and regulatory agencies, that have made it a collapse scenario if not dealt with correctly.
Time healed it in Houston due to the oil bust, in Boston and California in the early nineties due to job loss, etc.
Time will make this worse as far as global economic repercussions.
Forgiveness of principal owed above and beyond a fair selling price as determined by comparable recent sales in the vicinty, only upon sale and taxable as income with a restriction to being eligible for such forgiveness only once in a lifetime would free things up more quickly and far more cheaply than has been the case.
Good luck. Most economists are tied to the federal government in some way.
I think the solution is classic liberalism. Focus on economic growth. Encourage investment and innovation. Make sure small, growing businesses have a level playing field. In contrast, the corporate welfare program for the largest businesses hasn't worked out so well, has it?