no. because bank going bankrupt doesn't wipe away YOUR debt. it wipes away banks obligation to the governing body.

also micro-lending will be as big in west as it's in China in the next decade. borrowing 10k to margin trade the stock market is inherently more risky than borrowing 10M for a mortgage.

It makes things worse because the banks now have an incentive to engage in riskier behavior. Their downside is covered by the government and their upside is payoff. So reckless behavior becomes a nobrainer.

If only. The debt becomes worn as inflation and higher taxes.

Hardly, it may (or may not) help to mitigate the fallout though.