I understand credit as a tool. Last year, even though I am relatively well off, I took on all the debt I possibly could get... the interest rates were a "steal". Thanks to the Fed. The financial leverage opportunities were amazing.

We own around $10 million in real estate and your debt jubilee would almost double our net worth. Again, a sad truth is the "debtor class" is dominated by the wealthy, not the poor.

The poor tend to have too much credit card debt and not enough "investment" debt. As an aside, I also have margin loans on my stock portfolio are you going to forgive all those to? That would really propel my net worth. But are you really trying to make the wealthy wealthier?

Now if my net worth were doubled, the first thing I would want to do is go out and borrow all over again to double my holdings. Though I suspect you would disallow future borrowings, otherwise the whole proposal collapses.

I do believe credit card companies extend far too much credit to the poor and those "high interest" rates are a form of debt trap. But frankly, if you think the poor would support legislation that effectively prevented them from having credit cards... good luck.

I think a better solution would be to force people to save 10% of their income, give them a tax credit for those savings, and annuitize their savings at 65. Wages would adjust simply because they would have to in order to attract workers and at age 65 people would enjoy a standard of living that made working hard worth it. By instituting this on all earnings the day a young person graduates from college and excluding it from any debt restructuring. You would be turning to the working poor into the middle class.

But taking debt as a tool away from people is a problem. And again, since not all investments work out, not allowing lenders to earn interest makes lending a losing proposition. And so, very few people would be able to afford big ticket things like houses, cars, etc.