What I was saying is that the people who held the bonds may have received some interest but then the bonds went south and they made a net loss.

Also when a bond fails, wealth is destroyed - a bond is a promise of payment, upon which other things are built. If it defaults wealth is destroyed. Which is why having working rating agencies for bonds was and is a big deal.

I ageee and am not saying selling bad bonds Is inherently wealth destructive.

Anyway- I understand you are describing a way these things could be sold, is all.