Yet collective-action clauses will not make much difference to the way debt defaults are actually handled.
And in 1986-1989, when Mr Greenspan made his debut, a rash of debt defaults followed.
Yet there are few sanctions, even in theory, in the case of government-to-government debt defaults.
With corporate debt defaults low these days, the temptation is high to write insurance policies on bonds.
Some had lost their jobs, and the subsequent cascade of debt defaults was not something they chose.
In 1982 Mexico was in the midst of economic collapse amid runaway inflation, interest rates and debt defaults.
Significantly, Japan's weak banks are not exposed to debt defaults in Latin America, as are European and U.S. lenders.
Lenders quietly whisper that debt defaults are rather high given today's buoyant environment.
The report also acknowledges that it ignores possible risks such as disorderly debt defaults and unsustainable use of natural resources.
It usually follows payment delays, debt defaults and a push for courts to force the company into liquidation to pay its debts.
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The recent history of emerging market investing has been fraught with currency crises, massive fiscal and trade deficits, debt defaults, political risk and hyperinflation.
There isn't agreement either on how those banks vulnerable to sovereign debt defaults should be recapitalised or how big a default Greece and others should be forced to undergo.
In other words, a foreign inflow, as well as financing good things such as public infrastructure and corporate investment, is also associated with debt defaults, inflation and currency crises.
What if they are so committed to their agenda and dismissive of their constituents that they will allow unemployment to rise, interest rates to skyrocket, government services to disappear, seniors to lose their Social Security checks and other catastrophic consequences of debt defaults and government shutdowns?
And the Federal Reserve Board is imposing new stress tests to determine whether leading banks can withstand a wave of sovereign- debt and bank defaults in Europe.
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They are also beefing up their distressed-debt and bankruptcy teams, a source of profit that should mitigate any pain from a rise in defaults and tougher debt markets.
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Some of these assets are extremely complicated: credit derivatives, collateralized debt obligations, credit defaults swaps.
Since American firms and households are so much in debt, bankruptcies and defaults are sure to mount.
Mr. Flexner of Citigroup said the bank became more aggressive in pursuing REIT underwriting business after the sector weathered the brutal downturn with very few defaults on debt obligations.
Deflation erodes profitability and increases the real burden of debt, and so makes defaults more likely.
The same is true if Greece defaults on its debt: from the default there will be large losses yes.
Will investors have to chip in with debt restructuring or even bond defaults?
Markets have been speculating that if Greece defaults on Euro debt and leaves the common currency, then Italy may be next.
Norquist advised against taking an all-or-nothing approach in which the nation defaults on its debt unless major cuts (and no revenue hikes) are instituted.
First, he needs to orchestrate partial, but significant defaults on GIIPS debt that leave the GIIPS fiscally solvent even if their economies take years to recover.
Greece's long-running economic woes have shaken global markets and led to fears the country could crash out of the eurozone single currency if it defaults on its debt.
In an end-of-an-era type note to investors today Bove writes that there is a growing desire to test what will happen if the U.S. defaults on its debt next week.
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Without it, the U.S. defaults on its debt.
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The story goes that if Greece defaults on its debt it would have such a devastating effect on the European financial system that an economic recession in Europe would be unavoidable, and would spread globally.
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