The increase of value of debt is the big problem, which is in the original op because banks get stuck with a lot of bad debt and many would fail. While this is

The increase of value of debt is the big problem, which is in the original op because banks get stuck with a lot of bad debt and many would fail. While this is unfortunate, I see it as garbage collection for the economy. Once completed, there are new resources ready to go for the next phase of growth. If there is a deleveraging and saving phase, that provides the capital base for the next growth event. Keeping old processes running forever out of fear of a reboot is worse for the long term. Incentivising bad decisions during boom times with a Greenspan put creates moral hazard.