So my immodest proposal is simply this: Individuals and households in the bottom 99 percent who owe debt to any large financial institution that received federal government support during and after the 2008 crisis should see their debt forgiven. That would certainly stimulate the economy, as most people would suddenly find themselves with a great deal more money to spend on iPads (and food, and clothing, and housing, and healthcare). The debt can be forgiven by decree or if the government really wants to it can step in to pay it itself; I don’t much care either way. (Though it’d be nice to see it just wiped off the books, to enrage the banks.)
After that we can vote ourselves bread and circuses!
We already have a process to relieve people of consumer debt they can’t afford to pay. It’s called bankruptcy.
Banks don’t keep huge piles of money in their vaults, they loan it out. That’s why they can afford to pay interest on savings.
So if you wiped out all the debt, they would be unable to pay back their depositors. They would simply go out of business, leaving taxpayers holding the bag.