Debt relief is fair. It would also be good for the economy.
So why isnt it happening? One word: politics.
Underwater homeowners deserve help, but that wont reverse the downturn.
Investors are not all Shylocks. Many are blue-collar workers.
Bankruptcy reform will only go so far. We need wage growth and a working safety net.
Use asset-backed securities to create productive businesses, not unproductive homes.
We dont need to change views about debt; we need a responsive democracy.
Picking winners and losers is bad for society.
We neednt rob Peter to pay Paul.
A public conversation about personal responsibility has to acknowledge the limits of human rationality.
Debt is a political crisis that requires a political response.