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Same thing as if everyone stopped paying any type of loans. A shock to the banking system, potentially a collapse if the debt in question is a significant percentage of all debt. Many people would lose their savings.
And no don’t hope that bank owners would absorb the debt, they would just liquidate the bank in a bankruptcy wiping out everyone’s deposits.Edit: In most countries there’s also a deposit insurance scheme meant to cover cases of bank failure. But it can cover one or two banks failing, not all of them at once.
Remember in the late 2000s when it was discovered they were literally breaking a slew of lending regulations, giving mortgages to people unqualified for them, etc. etc. you can lookup the details but basically they were raping the country’s banks, and then when they were found out, they retired with multimillion dollar retirement packages plus bonuses. And the banks got the federal government to bail them out.
Biggest fucking grift in history and it was not long after the auto industry did the same fucking thing. Again and again this shit happens.
So don’t be under any delusion we could cause any kind of actual consequences to the ultra rich because they’ll just line us up and take the shirts off our backs before they pay a dime.
