This maybe old news to some and I’m not sure how I missed this article, but it’s well worth reading.
http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/

I almost fell of my chair when I read this Reuters article, since I’ve been advocating a debt forgiveness plan since the financial crisis started. See this early post in September 2008, about the ancient Shemittah Laws. Amazingly, I still agree with everything I wrote in that article and it’s well worth re-reading.

Even though some people will find a debt forgiveness unpalatable and unfair, the truth is that everyone will ultimately win from such a plan, thru renewed economic growth and a sustained increase in all asset values. I’m surprised this option is now being discussed in the open and I’m hopeful Obama has the guts to pull it off. It would mark the first economic policy, I’ve seen coming out of this administration that would actually work to get us out of our negative feedback loop. Next up should be some major tax breaks to fuel the demand side of the economy.