I have been thinking about these issues since the beginning of the crisis, and the two big questions I have are:
1) What do you do about bonds? A very large proportion of all debt is packaged into bonds, and reducing their yield will have a substantial effect on many pensions
2) Who is going to pay the wages of the people paid to administer these loans? Are they going to accept a deferral of their wages?
I am not trying to dismiss your idea; I had many similar ones early on, but I couldn't figure out how to square the circle.
1) What do you do about bonds? A very large proportion of all debt is packaged into bonds, and reducing their yield will have a substantial effect on many pensions
2) Who is going to pay the wages of the people paid to administer these loans? Are they going to accept a deferral of their wages?
I am not trying to dismiss your idea; I had many similar ones early on, but I couldn't figure out how to square the circle.