Is There an Irony in Writing Off Debt?

Ino: Is there an irony here that we don't like writing off debt of the people in detroit who took out ter second mortgages on their homes, but we seem to have a more lenient approach to debt taken out by big corporations? Ino. The solution that we propose in our book is to make the debt instrument more equity like. If there is a massive crisis and unemployment goes up, the debt payment owed to the creditor would automatically go down. Some countries already do this. For example, australia does that. They have what's called income based repayment. That if you earn less, you therefore are going to owe less on your debt. But the general idea...