I understand the importance of living frugally and within ones means. However, shit is hitting the fan for a lot of people and even those who are responsible are having to get creative.
Are we counting on "The Great Reset?" The biggest FU to the banks, go down with the ship? With interest rates at stupid numbers and a financial collapse every 10 years, what the actual fu*k?
Whats the endgame?
This is the exact argument I hear from people when I talk about it. Those who have debt / mortgages want it to be forgiven. Those who spent all their lives denying themselves luxuries so they can pay of their debts feel its unfair that the ones living recklessly should be rewarded. Both sides become pretty emotionally invested in this debate.
Hoenstly, I dont know the answer. I hope the final answer is something that makes everyone happy.
I cannot imagine a free world where recklessness is rewarded, and at the same time, I cannot imagine it where thousands of people are still debt slaves.
One possibility I imagine is that, whether a loan was predatory or not, if you got gains for it you have to pay for it. For example if you bought a house on mortgage, it makes no sense to forgive the mortgage, but let you keep the house for free.
Perhaps the house would be revalued and loan adjusted accordingly? The new loan would be easily affordable with the new wages? I dont know, but is sounds reasonable.
At the same time, if you were a honest local bank working really hard to help your local community and keep the feds off your bank (According to Catherine Fitts Austin thousands of such banks exist) - there is no way we are gonna tell them that they are screwed.
Ultimately, I am kinda glad I am not the one having to make these kind of decisions because there is no easy answer.
I have no debt.