Debtor Prisons? Is using leeches for treatment next?

The first great novel of modern Western literature - Don Quixote - was written by Cervantes in debtors prison. Debtors prisons were quite common in Europe of the age -- others like Moliere had also cooled their heels in the slammer. A surge of good new literature is the silver lining in the cloud from a quote reported in a nice post by Tim Iacono:

“Fannie wants to lock people up in a jail of negative net worth for much of the rest of their lives. They’re bringing back the debtor’s prison.”

Fannie Mae announced their intent to punish strategic default by homeowners who are underwater. Details are still scarce. Its nice to see Fannie attempting to manage its losses, but its hard to see how this aligns with US Government bailouts ($140 Billion + at this point, and growing) of Fannie, Freddie, etc to provide relief to struggling homeowners.

A different extreme for dealing with debt is being adopted by Iceland. Felix Salmon submits:

How many times can Iceland’s banks fail? More than once, it would seem, in the wake of an important ruling by Iceland’s Supreme Court. It regards loans which were disbursed in Icelandic kronur but linked to either Swiss francs or the Japanese yen; the court has now ruled that the indexing is illegal, and that the borrowers need only to repay the loans at their initial interest rate in kronur.

Effectively the Icelandic court has "stuck it to the banks" -- a very popular decision given the recent crisis in Iceland. 

What other mechanisms for debt management will we see in the coming months and years given the extreme indebtedness (private and public) in many advanced economies?