Oh yeah, I'm sure the creditors will be highly confident about future lending after a jubilee, because they went from wondering if debt will be repaid...to knowing it won't.
Where do people come up with this stuff?
I'll bet most of them already know. Start with nothing, work hard, save money for retirement, lend it to entitled students and have them not only stiff you, but also spit in your face.
That seems fair.
Let's hold the boomers+ to the fire. And the banks.
There are going to be some disappointed Boomers in the next decade, when looking to sell their main asset, upon discovering nobody can or will pay their inflated prices.
Additionally, anyone making loans is already considering the risk of a debt jubilee when making loans now. After a debt jubilee of course the risk of recurrence is higher, but the risk assessment for banks would not be magnitudes different in the medium term.
Firstly, the debt burden is only diffused because those "mustache twirling CEOs' decided it should be.
Pensions used to work just fine before they were financialised by sharks. So did insurance.
No one sane should be trying to increase the returns on a pension fund by gambling on student debt, on real estate loans, or on consumer credit.
That was exactly the approach that caused the implosion of 2008 - or more specifically, it was "mustache twirling CEOs" hiding the fact that the investments they were selling as a sure thing were junk loans with a cheap wood veneer.
Secondly, even if this wasn't true, the social and economic costs of an economy that runs on usury instead of productive investment are so predictably crippling that the hair cut, with associated uncontrolled demolition, will happen anyway.
A debt jubilee would do a lot to restore confidence, because everyone will be able to stop looking nervously at everyone else's obligations and wondering if they're going to be able to meet them. Instead, some realism will be restored to book values.
This would still be cataclysmic, because the financial industry needs to understand that it can no longer run on cocaine and bullshit.
But it won't be the financial equivalent of a self-inflicted nuclear strike, which is a real possibility as things stand today.