“With more “fairness,” heavy borrowers couldn’t just walk into a court, turn over their spare cash, and walk away free, as those who declare bankruptcy under Chapter 7 do today. (Granted, they take a big hit on their credit report.)”

If that’s how bankruptcy actually worked, I don’t think people would be so mad. But the definition of “spare cash”, and the question of the actual identity of the “borrower”, are the crucial details that have people so angry. Bankers who are responsible for generating trillions in bad debts still own millions upon millions in personal assets, and they have not been asked to “turn over” any of it. This trick has been accomplished through sleazy and unfair financial chicanery unavailable to anyone who makes a mere five figure salary: the shell-game of corporate personhood and limited liability, an intricate system of offshore asset shelters, etc.

McArdle is being disingenuous at best in ignoring this elephant in the room.