/biz/ - Business & Finance

>>15156946
>>15156974

Ok so can someone redpill me on the whole "deep in debt during a crisis = good thing" idea?

Everything I've heard from normies and boomers suggests that "those already in debt will be hit the hardest" during a recession or some shit like that.

But that doesn't make sense:
>in mountains of credit card debt (like above anons mentioned)
>great depression 2.0
>no one can pay back their debts
>big banks (Capital one, discover) run dry
>go out of business
>no moar debt :)
>???
>Profit!

I assume you'd get your manila folder send to a collection agency or something for a lifetime of mandatory penis inspection days, so not like you're just off the hook - but if everyone who took a loan from a huge financial entity suddenly stops making repayments, what's that entity to do? (unless they get bailed out by uncle sam of course)