SDR, I think that the amount of wealth transfer to existing homeowners (through forgiven debt) will be close to that $1 trillion amount we’ve seen bandied about, but the pain will be split between taxpayers (=govt) and bond investors. Bond investors will be made to pay their part with some defaults, but mostly higher future inflation. Non-homeowning taxpayers who save are going to get…. a really bad deal.
I feel like it’s 1968 all over again, before everyone realized fully how much Johnson’s war and Great Society cost, and what that would do. The 1970’s were a lousy time to be responsible.
