Bankrupting Leverage: Are We A Zombie Nation?

``Set aside for a moment the argument about what is the right level of debt for all banks and all households. Let’s run a fire drill, and assume in 1980 we had it right. Assume GDP is a valid starting place to determine our ability to pay debt. And then assume $7 trillion of household debt and $14 trillion of financial debt is un-payable. All of it is a write off in this scenario. How do we erase this value-less pestilence?''