But who, you might ask, is buying this debt at these prices with default so close?
Financial institutions are underwriting Shariah-compliant loans and bond issuances without really understanding the risks associated with default and bankruptcy treatment.
As a result of their flirtation with default, the stock market plummeted.
Most important, by changing international law, politicians would send a strong signal that they were serious about creating a procedure to deal with default.
Republicans should waste no time starting to explain their debt-limit terms, so voters also understand the GOP isn't toying with default as a political ploy.
Let's just remember what danger awaits the pursuit of that path, the harm that was brought to this economy simply by the flirtation with default in the summer of 2011.
Among the most cautious is China, which has been selling American agency bonds since their main issuers, Fannie Mae and Freddie Mac, the two mortgage giants, flirted with default in mid-2008.
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The simplest way to cope with default by private borrowers is to improve the inadequate domestic bankruptcy laws that still prevail in many emerging economies, something that is slowly under way.
Greece leaving the eurozone and adopting its own currency would be associated with default in its government debt, a collapse of the Greek banking system, and would probably tip the Greek economy into depression.
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What does this have to do with default?
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And he hopes that as we move -- now that the Republicans have appeared to set aside flirtation with default as a means to move forward in these negotiations, that maybe we can make some additional progress.
We have seen in recent days and weeks a number of Republicans and a number of interest groups allied with Republicans make clear their position that flirting with default is a disastrous idea, it is a terrible idea.
There are two reason for this: First, many consumers have no idea what they should do to secure the products they use and, second, manufacturers try to make installation as painless as possible by allowing devices to work with default configurations.
And as one of their essential responsibilities, to ensure that they do no harm in Congress to this economy and to the livelihoods of average Americans, flirting with default or, even worse, allowing default, would be a violation of those primary responsibilities.
We saw what happened in the summer of 2011 when Congress did flirt with default, when House Republicans in particular used that as an issue to try to achieve some political objectives and just the mere flirtation with default caused severe economic harm, which I spelled out yesterday.
Massive bets against a firm with credit default swaps along with short sales, especially naked short sales, can logically become a self-fulfilling activity, which may or may not have done Bear Stearns in.
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It sold down its interest in Clearwire to below 50%, supposedly to deal with cross default provisions related to its long regretted merger with Nextel some years ago.
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And this social construct often does provide us with a default form of economic institutions.
There would, in short, be a clearly defined process for dealing with sovereign default.
Worse, Linksys' devices come with a default password, "HomePlug, " rather than forcing you to install one of your own.
Although few investors remember it, the U.S. has flirted with technical default before.
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Sallie Mae spokesman Tom Joyce told NPR that the risk for lenders is greater at schools with higher default rates.
If you know your keyboard setup, select it in the list, otherwise you'll be fine with the default 105-key option.
The most we ever got was about eight hours, with the default backlight settings which leave the screen off most of the time.
At that point Ellison began building a 90-foot trimaran, nicknamed "DoGZilla" because it complies with the default rules in the Deed of Gift.
Tests were performed used a Macintosh computer running Apple's operating system (OSX Lion) and Web browser (Safari version 5.1.3) with the default settings enabled.
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Yet globally linked banks simply send this new money offshore, creating jobs in other countries or betting with credit default swaps on which European sovereign bonds would default.
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The discussion is led by Psychology Senior Richard Barton, who maintains Facebook's high strike rate in this area has to do with the default picture it puts up if you don't post your own.
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