This is something new?

They can probably mitigate that by deferring payments and injecting cash into consumers until things pick up. The fed has already mandated that for fed-backed home loans (about 50% of them). The rest of the industry is expected to follow suite.

Deferred payments, not debt forgiveness. Just puts consumers in a deeper hole.

Corporate debt levels are a historic levels too. There will be municipal bankruptcies left and right.

complete lack of institutional confidence will fuel things further

I hope I’m wrong, but I don’t see how we don’t wind up on a recession or depression on the backside of this.