I agree a Resolution Trust will help complete the bad debt nullification process, but again how will the overall economy continue?

The FIRE engine is broken. Even a removal of the dead weight of bad debt will not restart it.

Sure, the talk about spending on infrastructure might provide a new engine. But the cost of this spending is ... more debt?

How is this different than a 3 card Monty scheme?

On this hand, bad debt disappears. On this other hand, good debt appears.