What you are suggesting is exactly what happened in Japan, especially in the commercial sector. What did it get them? 15 years of stagnation (the lost decade).
We lectured Japan for years to bite the bullet and write off the bad debts, sell them and move on. From an economic standpoint, it’s better to let the market cleanse itself without intervention.
I hope that our regulators will have better sense than to permit such monkey business.
