The banking system should eventually go bust. Probably not tomorrow, but all we have managed to do so far is delay the inevitable
Based on what? Why should I believe that the banking system is suddenly untenable to a degree that it's demise is inevitable? Please present actual evidence rather than soundbite opinions. There are FAR simpler and more compelling arguments (I outline one below) regarding why wages are stagnating recently than debt levels.
The loans they have issued cannot be repaid. The only question is how we are not going to repay them. Either we go bankrupt, or we find some other way to wipe off the debt.
Can't repay them? The US debt as a percent of GDP isn't even the highest it has ever been. It was higher right after WWII. The way to reduce the debt is simple - either raise taxes or reduce spending or both. We merely lack to political will to do this at the present. The notion that we have debts that "cannot" be repaid is nonsense. As for individuals there is copious data showing that individuals and households have been paying down debt levels significantly since 2008. Companies have balance sheets that are historically very strong with large amounts of cash and relatively low debt levels overall.
The Great Depression started with the stock crash of 1929, lasting for the next 10-ish years. But it was the rising debts of the 1920's that were the real problem. Through the depression, those debts started to reduce. But it took the huge spending effort and industrialisation, fighting WWII to really eliminate them. Setting us up for the boom years of the 50's and 60's.
The boom years of the 50's and 60's were largely because the US economy was the only one left standing after WWII. Once the rest of the world recovered the US then had to compete on a more even footing and so the easy money was gone. Our debt level as a percent of GDP was higher after WWII than it is now. That's not to say that our current debt level is responsible in any way but we aren't in uncharted territory either.
The BIG thing that people seem to be overlooking is that we have had about 1/3 of the human population in China and India on the sidelines economically for the last 100+ years. We have a sudden flood of labor into the market in the last 30 years which wasn't a meaningful part of the economy previously. When you have to compete on labor costs against someone else with lower labor costs it tends to hold back wages. The US has among the highest per-capita GDP in the world and the EU on average isn't far behind. There is no reasonable argument to be made that the US is somehow special and will manage to maintain those high wages indefinitely. A reversion to the mean should not surprise anyone.