Economists say a default would be catastrophic.
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As I explain in this paper, credit derivatives are merely a financial tool that can be used by those exposed to credit risk, say a default by the Greek government or General Electric, to share that risk with others.
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Were, say, Brazil to default on its debts, even Mr Greenspan would be powerless to stop market meltdown.
And we believe, when Senator Cornyn or others say we will not default, period, we will not let that happen.
They say it would make default easier and, whatever the Fund's official line, would increase the power of an institution that is driven by politics more than economics.
The schemes Blago allegedly invented to "monetize" his public authority, while never rising to the sophistication of, say, a credit default swap, still showed a cunning that would command the respect of any Wall Street Ponzi master.
Without it, he will say, the country faces default and catastrophe.
He takes the leaders of Congress of both parties at their word when they say that we will not default, Congress will raise the debt ceiling, will take measures so that the debt ceiling is raised.
If Greece had defaulted back when the problems were first evident, before the IMF, the ECB and so on became preferred creditors, then they could have had an orderly, negotiated, default at, say, a 40% to 50% haircut, the debt would be sustainable and the problem would be over.
But our correspondent says that many people in Greece say they prefer the chaos of default to years of hardship.
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But that is all by default - the girls say they are here to be recognised for the quality of their music, not their background.
And Republican leaders say that they agree we must avoid default.
WHITEHOUSE: President Obama Addresses the Nation on Dangers of Default
Needless to say, I lost the argument about the default behavior (what got assigned to Cmd-Z for out of the box installation) with the introduction of History feature.
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Nash believes that the professional identity is the most natural to become the default public identity, rather than, say, a photo-sharing website.
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Dealers say the Greek market is quite illiquid since insuring against default is so expensive.
ECONOMIST: How the credit-default market will judge a deal on Greece
Whereas most market participants expect a resolution before the Treasury can no longer pay its bills, there is nevertheless a growing uneasiness with protracted political maneuvering that sets up the potential for a U.S. default and credit-rating downgrade, analysts say.
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Let us assume the default rate in a mild recession would be somewhat lower, say 7%.
The polls showing that independent voters say they will blame Republicans more than Democrats for a U.S. default reflects this disconnect.
Some go so far as to say that if a bond is insured and bondholders receive back the par value, no default has taken place, just an unscheduled call.
FORBES: Even If A Bond Doesn't Default, You Can Still Lose Your Money
They say the exposure of German and French banks to Greek debt is manageable and they deny that a default would put at risk the entire European banking system.
The two real estate data firms released a survey showing 59% of Americans say that even if they owed more on their homes than they were worth, they would reject default as a way to get out of the problem.
Analysts and industry executives say it's difficult to predict how many of the maturing commercial property loans will wind up in default because they can't secure a new mortgage.
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