So in order to reduce debt that's in opposition of innovation, debtors are penalized by innovation caused deflation, you'd change the terms of the debts from fixed payments to relative repayments that behaved like shares.
I was talking to my dad today how debtors could be enlisted into the share market by the banks, and he said "Who'd buy those things?". Well indeed the banks are there because of the collateral, so I realized it wouldn't be the same if those bonds became shares just like that, but it could still be debts but has terms like shares.
When would you declare default? When the company defaulted of course... right? That's why banks would offer the portions of the debts to the public because banks wouldn't be taking those volatility.
