Implode-o-Meter News - Debt Forgiveness -- The IMF, Iceland, and the U.S. of the 1930s all say it works

"The IMF has studied the response of a number of countries to situations where large parts of the population are burdened with high mortgage debt in a recession, and finds that such programs can help prevent self-reinforcing cycles of falling house prices and lower aggregate demand."
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Iceland's mortgage write-down program happened as a result of thousands of its citizens taking to the streets demanding that something be done about the debts the people had incurred buying homes during the bubble at what turned out to be wildly inflated prices. At one point, they surrounded the country's parliament building and started throwing rocks.
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Of course, in our country, there's no way that would ever happen because we're all way to ashamed to be seen on CNN in what would be called, "The March of the Deadbeats." Which is why I suggested the DOERS idea... stay home, send emails and other clever things through the mail. Occupy without leaving your house, if you will.

Relevant:

Debt Forgiveness -- The IMF, Iceland, and the U.S. of the 1930s all say it works - Mandelman Matters