Investors should think twice about using plastic for discretionary items, but remember that all debts aren't bad debts.
"The UK has already cancelled all debts owed to it by Haiti and I strongly welcome today's G7 commitment to forgive Haiti's remaining multilateral debt, " he added.
Also, of course, if you leave the euro, suddenly all debts are denominated in euros, but all income is in relatively less valuable drachmas: you get an instant debt spiral.
The point is that if you add together all debts - government debts, corporate debts, financial institution debts, and household debts - Spain is a much more indebted or leveraged country than Italy.
What is really being said here is that if Greece leaves then Greece can, quite legally, simply state that all debts contracted under Greek law can now be settled in the New Drachma and the fact that this is worth less than the old euros makes no difference.
FORBES: The Important Phrase About the Coming Eurozone Breakup: Lex Monetae
The one single most stupid decision of the past few years (yes, even more stupid than the Kardashian wedding) was Ireland guaranteeing all of the debts of all of its banks.
FORBES: Eurozone: S&P Downgrades Everyone and the Appalling, Horrible, Error
However, the Irish Government, in what several (Paul Krugman I seem to recall) have called the single most stupid and exepnsive action of the past decade, declared that the Irish State would guarantee all of the debts of all of the Irish banks.
Brussels need not take charge of tax and spending, nor need Eurobonds cover all government debts.
All external debts denominated in euros would continue to be honored in euros.
The value of all community government debts when combined with all community government IOUs or bonds is zero for the community.
FORBES: We'd All Better Hope Krugman Is Right On The U.S. Debt
Consider the calculation of "disposable income, " supposedly what's left after you've paid all secured debts (like your mortgage) and living expenses.
Why should Uganda have all its debts cancelled but not Bangladesh, a poor country that has managed its debts more competently?
Or to put it another way, the risk of the US not repaying all its debts is supposed to be infinitesimally small.
But if something completely fails, as long as we bow out gracefully, pay off all our debts and nobody gets hurt, then I don't think people disrespect Virgin for trying.
Millions of people in the UK struggle everyday to pay their bills rather than take the substantially softer option of declaring themselves bankrupt and having all their debts written off.
When it comes to Microsoft, it is still the net cash king in the world, after all its debts excluded, it still has a huge net cash about 50 billion dollars.
Push researchers looked at all the debts, apart from mortgages, accrued by students at different stages of study around the UK, including some on longer courses such as medicine, and some postgraduates.
In the end, NextWave was able to resell the spectrum to Verizon, Cingular (now ATT) and Metro PCS. It was able to pay off all its debts, its lawyers and still have some money left.
If investors are convinced that all bad debts in Spain's banking system have been revealed and if Spain's government shows it can raise the cash to recapitalise weak lenders, then fears about the country's solvency should recede.
What it means is that if the money were to come from the ESM, existing and future commercial lenders to the Spanish government would rank behind eurozone governments in the event that Spain was unable to repay all its debts in full.
Which is one reason why eurozone governments and banks are finding it harder and more expensive to borrow - and why, with all those debts falling due in 2012, eurozone leaders haven't got long to agree a credible rescue package, if they're to skirt default, banking meltdowns and eurozone fracture.
Or to put it another way, there is no serious momentum in economic activity that gives endless time to the leaders of the eurozone to agree measures that will provide reassurance to creditors and investors that Spain and Italy - inter alia - will ultimately be able to pay all their debts.
The most sweeping intervention of all came from Ireland's government, where concerns about spiking credit-default swap (CDS) spreads, falling share prices and jittery depositors led the finance minister to announce, on September 30th, a blanket guarantee on the deposits and almost all the debts of the country's six biggest banks until September 2010.
The only way to assess a country's fiscal condition that is free of this problem is by forming the country's fiscal gap--the present value total of all the official debts and unofficial current and future spending obligations after netting out all the current and future taxes everyone is currently slated to pay.
They are just about insolvent and the Irish government has already pretty much guaranteed all Irish bank debts.
All of which suggests that the eurozone will continue to expect Greece to honour all its massive debts.
Not all of these debts are from governments: Banks, nonfinancial companies and households can also carry heavy debt loads.
应用推荐