According to the Fed’s accounts, "Households and Nonprofit Organisations" is a broad-based measure of all domestic assets in the US, including household investments in domestic hedge funds, private equity funds, and personal trusts.
Some State, Local and Military retirement funds have purchased debt so extinguishing debt (aka default) moves the pain elsewhere. It doesn't eradicate the problem.
"There will be a recession eventually, that is normal cycle and easy to understand why it occurs. When it happens there are opportunities not armageddon."
Agree. But recessions do differ in their impact depending on how they are managed. People survived the great depression but a lot of people lost all their wealth. If the public is spending all their wealth to pay off debt then they will spend less money of goods which will cause a depression in itself.
