So, global debt (247T) now outpaces 2008....

[Bluegrass]

and it’s supposedly a large part of the ticking time bomb as we move seemingly inexorably toward a correction/recession/depression.

Once the implosion happens, how is the debt problem resolved? A massive ying and yang of defaults, collections and write offs through which the world emerges with a less risky aggregate debt load? And the prudent play for the average joe (with no debt and investable assets) is to sit in your storm shelter with an appropriate asset allocation?

 

[marko]

And the prudent play for the average joe (with no debt and investable assets) is to sit in your storm shelter with an appropriate asset allocation?

That, and wait/look for bargains.

 

[Koolau]

<SNIP>

Once the implosion happens, how is the debt problem resolved? A massive ying and yang of defaults, collections and write offs through which the world emerges with a less risky aggregate debt load?

You forgot bailouts of those "too big to fail." Hint, that's not anyone here, but YMMV.