Yes it's like the "cancel all debts" idea. Great idea, but emm.. by the way you do realise that "money in your bank account" is technically a debt that the bank owes you, so that gets cancelled too!
Ah "cancel all debts to people not banks". Great idea, but emm. OK so the bank now doesn't have the assets on it's books, goes bankrupt can't pay you that money in your savings account.
"cancel all debts to people not banks, and let the government bail out those banks". Great Idea, but.... something something hyperinflation.
> Let them go bankrupt or have the banks suspend mortgages.
Is this a serious comment or are you trolling?
Forget about a recession, the devastation a policy like this would cause would plunge the US into a full blown depression. Deflation and asset price collapse across the board. YEARS of stagnation.
(To me) the answer here seems clear: A direct bailout in the form of $ to consumers and some mix of direct $ and tax credits to businesses.
