> won't it change the equilibrium for future generations of lenders and borrowers such that an inefficiently low amount of lending goes on Yes, at one extreme,

> won't it change the equilibrium for future generations of lenders and borrowers such that an inefficiently low amount of lending goes on Yes, at one extreme, nobody ever pays anything back and no lending ever happens. But at the other extreme, everybody always pays their debts and the bankers asymptotically approach ownership of 100% of the money. I think we are closer to the second extreme than we should be.