Defaults
in sentence
234 examples of Defaults in a sentence
With bonds of “peripheral” eurozone nations continuing to fall in value, the risk of Irish, Greek, and Portuguese sovereign
defaults
is higher than ever.
The Debt DelusionWASHINGTON, DC -- A second big American interest-rate cut in a fortnight, alongside an economic stimulus plan that united Republicans and Democrats, demonstrates that US policymakers are keen to head off a recession that looks like the consequence of rising mortgage
defaults
and falling home prices.
The list of
defaults
goes on and on.
All of this chaos is the consequence of a massive fiscal deficit that is being financed by out-of-control money creation, financial repression, and mounting
defaults
– despite a budget windfall from $100-a-barrel oil.
When a country defaults, the economic damage swells the number of poor people and worsens their living conditions.
Of course, there is no glee in seeing stock prices tumble as a result of soaring mortgage
defaults.
Historically, these agencies had been reliable in predicting the risk of corporate
defaults.
So, even if the Greek government
defaults
on all of its debt, it might have no option but to print pieces of paper in order to meet its obligations.
Meanwhile, not only is fiscal austerity pushing the eurozone periphery into economic free-fall, but the loss of competitiveness there will persist as relief at the waning prospect of disorderly
defaults
strengthens the euro’s value.
Moreover,
defaults
on securitized credit card debt and commercial loans to companies that are driven to bankruptcy are still to come.
China’s Fire Next TimeBEIJING – Earlier this year, rumors of China’s impending financial doom – triggered by either a housing-market crash or local-government debt
defaults
– were rampant.
As a result, defaults, bankruptcies, and economic decline become more likely, putting further downward pressures on prices.
If a homeowner defaults, creditors can take the house, but they cannot take other property or income to make up any unpaid balance.
The growing gap between mortgage debts and house prices will continue to increase the rate of
defaults.
And the lower prices lead to more negative equity and therefore to more
defaults
and foreclosures.
Yet their new proposals, which bizarrely imply that
defaults
can happen only after mid-2013, defy the basic economics of debt
defaults.
If the US government defaults, however, all of them will “break the buck,” meaning that they will be unable to maintain the principal value of the money that has been placed with them.
On the other hand, if the ECB preferred to let major countries, such as Italy, default on their debts, this would likely weaken the euro even further, as investors feared a contagion of
defaults.
They won’t blindly follow
defaults.
It has also publicized those tools, often inadvertently, by setting overly public
defaults.
East Asian countries were told to raise their interest rates, in some cases to 25%, 40%, or higher, causing a rash of
defaults.
In 2011 and early 2012, there was much talk of a crash in China’s housing market, and a chain-reaction of
defaults
in underground credit networks and local-government finance platforms.
It’s Not Just Russia’s FaultMOSCOW: Today, many people see Russia as undeserving of Western help, due to the chaos, corruption and
defaults
of the Yeltsin years, but also because of concerns about authoritarianism and human rights abuses under President Putin.
But the real problem is that the global economy is badly overleveraged, and there is no quick escape without a scheme to transfer wealth from creditors to debtors, either through defaults, financial repression, or inflation.
Delinquencies, defaults, and foreclosures are now spreading from sub-prime to near-prime and prime mortgages.
In addition to the downturn in real estate, a broader bubble in consumer credit is now collapsing: as the US economy slips into recession,
defaults
on credit cards, auto loans, and student loans will increase sharply.
Given all this, the recession will lead to a sharp increase in corporate defaults, which had been very low over the last two years, averaging 0.6% per year, compared to an historic average of 3.8%.
But it’s worth recalling that in the post-1945 period, fully one half of all
defaults
by emerging-market economies took place at debt-to-income levels below the Maastricht Treaty’s ceiling of 60%.
This will fuel more global deflation and private and public debt
defaults
in debtor countries, which will ultimately undermine creditor countries’ growth and wealth.
But if it is too difficult to restructure and reduce debts when bad luck leads to unsustainable debts, the result is bad for both the debtor and its creditors, who are better off when a reduced debt ratio is serviced than when a debtor
defaults.
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