Either banks need to default on their senior obligations, or the government will need to default alongside the banks.

But these interest rate spreads make the benefits of non payment greater, so the same shocks can send a country quickly into default.

The best way to get rid of debt (short of default) is to grow out of it.

By creating the European Central Bank, the member states exposed their own government bonds to the risk of default.

The growing gap between mortgage debts and house prices will continue to increase the rate of defaults.

By being less concerned with preventing default, we can make risk and reward more congruent with each other.

Europe s leaders were also paralyzed ruling out defaults and devaluations, as well as deficits and stimulus.

The costs of default depend on how messy things become when payments stop. What are the legal difficulties?

A default would be painful but so would any other solution.

As Chancellor Angela Merkel and her colleagues promote their well defined plan which comes in addition to a plan for bridge financing while in default the cost of default falls.

Unfortunately, there is no program to deal with the defaults and foreclosures caused by high loan to value ratios.

Unsustainable private debt problems must be resolved by defaults, debt reductions, and conversion of debt into equity.

Some form of default will almost surely be forced upon Greece, and this may be the most preferable alternative.

The borrower is cut off from international markets, and essential imports can no longer be purchased, while large scale defaults threaten to plunge creditors into insolvency.

According to the bonds collective action clause (CAC), this would not amount to a default if 75 of bondholders accepted the change of venue.

If markets self correct, they do so only when defaults are registered and punished.

Default rates in the informal sector are high, and lenders may disappear with depositors money, as happened in Wenzhou.

When financial markets discovered that supposedly riskless government bonds might be forced into default, they raised risk premiums dramatically.

Every week, a preposterous coterie of European bankers and finance ministers drags itself from one capital to another to discuss which default restructuring plan to adopt.

Doubts about the sustainability of government debt produce sudden surges in interest rates, as risk premia rise dramatically with perceptions of the likelihood of default.

Default of appearance

Second, banks would also suffer because they had sold insurance against default in the form of credit default swaps.

Many homeowners who can afford to make their mortgage payments will choose to default, move to rental housing, and wait to purchase until house prices have declined further.

The impulse simply to cut the Gordian knot of debt by defaulting on it is much stronger when creditors are remote and unknown.

That means that lenders could pursue borrowers other assets not just the house in case of default.

This is a new program, and it remains to be seen how well it will work to prevent future defaults.

Either officials recognize immediately the inevitability of default and waste no resources trying to prevent it, or they believe that a default can be avoided and deploy all the resources at their disposal as fast as possible.

This was deemed a credit event, so credit default swaps were exercised anyone who insured against default had to pay out.

One reason that banks oppose debt write downs is that many underwater homeowners continue to repay debt rather than default, even while cutting back on other spending.

The Failure of China Bashing

It certainly is not attracted by the return and seemingly riskless security of US government paper both of which are much in play in an era of zero interest rates and mounting concerns about default.

Even with external assistance, many view default as a near certainty, because the arithmetic of restoring fiscal balance is so daunting.

The Bank of Communications performance suggests that China s lending boom of 2003 and 2004 could lead to another wave of defaults this year and next.

This holds down interest rates on that debt in the short run, but creates even bigger potential losses in the case of potential default.

In June 2012, Gabon delayed the coupon payment on its 1 billion bond, pending the outcome of a legal dispute, and was on the verge of a default.

(a) Evading to perform military service

We wouldn't be caught dead in Chicago.

At last, we stopped going out there.

And, if Spain is at serious risk of default, government solvency is at risk throughout the eurozone except in Germany.

Then, with the immediate default risk removed, money stormed out of risky assets into Treasuries to wait out the economic bad news mainly feeble and declining growth, employment stagnation, and falling equity prices.

So e to the minus infinity is going to go to zero much faster than this is going to go to infinity.

Some were unable others were unwilling.

The benefits of default are the savings on future payments by the government especially payments to non residents, who cannot vote.

Default teaches creditors and their governments a lesson, just as it does the debtors mistakes cost money, and your mistakes are your own.

What do you say to going fishing with me?