It's easy to say that "they will be forgiven" but that's a huge evaporation of debt in the system: these are assets being marked at par in pension funds, etc.

It's easy to say that "they will be forgiven" but that's a huge evaporation of debt in the system: these are assets being marked at par in pension funds, etc. Students are poor and don't vote. That's why it will be different this time. EDIT: (I really should take more time in my replies) Also, let me say that I am in 100% agreement with you about the morality of the situation and how GenY (and GenX) were sold a bill of goods on the debt issue. But I think we are at the end of the line (in the next decade or so) and now it's a matter of who takes the most pain. I wouldn't bet on that being the banks, insurers or pension funds, and evidence so far confirms my non-bet.