Who will the regionals hire while they wait for these instructors to get 1500/ATP? Moreover, who will these CFIs instruct?
The CFIs will instruct the group of students getting the now $100,000 in SLM loans to learn to fly, the Regionals will hire more DE captains (they'll have to be able to keep functioning) and then hire all of the guys who happen to be at about 1500TT at the time. I am not sure how many guys are going to retire once age 65 makes them ineligible (i'm sure someone has the stat) but its not going to create a shortage that was anyworse than the last hiring frenzy. These things come in waves.
My limited perspective only really sees a trickle down theme as the possibility:
Geezers Retire
Majors Upgrade some FOs-Captains
Majors Hire New FOs
Regionals Upgrade new Captains
Regionals Hire New FOs & DE Captains
--Wages for FOs stay the same
Flight Schools see a shortage of CFIs with over 1500TT
-So they hire more guys straight out of CFI school and pay them better than every before (as was the case in the last pilot shortage)
Cargo Outfits see a shortage of guys over 1500TT
-So they start hiring guys to be VFR PICs at 500TT
Banner Tow, Pipeline Patrol, Traffic Watch and Skydiving operations are saturated with sub 300TT resumes, mins go up accordingly.
Places like ATPs offer "Guaranteed Job to 1500TT," PFT/PFJ becomes more prevalent as people want to hit 1500TT with more "experience".
Alaska mins stay roughly as they are now as insuring people under 1500TT is hard enough anyway.
The quantity of flight training students stays the same because of people touting the "great pilot shortage or 2012."