...snip...
I guess there isn't a problem if we don't mind going through the entire local-bank-panic-so-merge-with-another-bank-over-and-over-again-until-it-becomes-a-behemoth-cartel-composed-of-very-few-members-that-hijacks-the-government-and-turns-everybody-into-debt-slaves cycle all over again
Lots of people borrow to their credit limit and rely on the repo man to provide them with motivation. You could even argue that some countries like to borrow right up to their credit limits and then only start to work. That's the way capitalism works - no amount of math will change that. I appreciate that you'd like people not to behave that way but its the way things are.