reduced by negotiation with creditors or by a legal bankruptcy process, which can result in dismissal of certain types of debt such as credit cards. Some lenders may agree to write down mortgage values (reducing the homeowner's obligation) rather than taking even larger losses in foreclosure. Economist Joseph Stiglitz argued for a rapid bankruptcy process for homeowners, to allow debts to be written down. Economists Joseph Stiglitz and Mark Zandi both advocated significant mortgage refinancing or write-downs in August 2012. They explained that more than four million Americans lost their homes since the housing bubble began bursting in 2006. An additional 3.5 million homeowners are in the foreclosure process or are so delinquent on payments that they will be soon. Roughly 13.5 million homeowners are underwater (in negative equity), meaning they owe more than their home is now worth, increasing the odds that millions more will lose their homes. The household debt and foreclosures are significantly holding back the economy. Economists Kenneth S. Rogoff and Carmen M. Reinhart wrote in April 2013: "In the United States, we support reducing mortgage principal on homes that are underwater (where the mortgage is higher than the value of the home). We have also written about plausible solutions that involve moderately higher inflation and “financial repression” — pushing down inflation-adjusted interest rates, which effectively amounts to a tax on bondholders. This strategy contributed to the significant debt reductions that followed World War II. Professor Luigi Zingales (University of Chicago) advocated a mortgage debt for equity swap in July 2009, where the mortgage debt would be written down in exchange for the bank taking an interest in future appreciation of the home upon sale (a debt-for-equity swap). Fund Manager John Hussman also advocated debt-for-equity swaps for households and banks during April 2009. Journalist Steven Clemons wrote in July 2012: "The Great Recession of 2008–2009, from which there are still repercussions in the US and global economies, resulted from a massive surge in consumer loans—98% in just five years—and ... the combined total of US business and consumer loans is basically at the same level as at the moment this crisis hit." He argued for debt forgiveness or restructuring to help stimulate the economy. During the Great Depression, the U.S. created the Home Owners Loan Corporation (HOLC), which acquired and refinanced one million delinquent mortgages between 1933 and 1936. Inflation If wages increase due to inflation,