# Why not zero the debts?

**URL:** <https://boards.straightdope.com/t/why-not-zero-the-debts/596984>\
**Category:** Factual Questions\
**Created:** [September 20, 2011, 8:22pm UTC](https://boards.straightdope.com/t/why-not-zero-the-debts/596984 "2011-09-20T20:22:10Z")\
**Posts on this page:** 1\
**Page:** 4

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**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\
**Post date:** [November 5, 2011, 12:34pm UTC](https://boards.straightdope.com/t/why-not-zero-the-debts/596984/61 "2011-11-05T12:34:58Z")

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> [@Fat\_Marrow](#):
>
> … I can’t see why the following theory wouldn’t work…  
> 2. Reduce mortgage values to fit the new house prices.

It is encouraging (though belated) news that [some economic experts including Ronald Reagan’s chief economic adviser](http://www.bloomberg.com/news/2011-11-04/ex-trader-lippmann-calls-for-u-s-mortgage-forgiveness-after-subprime-bets.html) (Prof. Martin Feldstein) are now calling for mortgage principle reductions as the best path forward in this on-going crisis.

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