Insolvency
in sentence
166 examples of Insolvency in a sentence
In case of insolvency, a bank’s computers would not be turned off, its employees would not instantly be dismissed, and payment transactions would not collapse.
Nor would a run on savings deposits occur, given the official guarantees that they remain unaffected by a bank’s
insolvency.
Of course, the deliberate restriction of the effects of bankruptcy to accounts other than private current, savings, and fixed-term deposits means that the
insolvency
of bank A could lead to the
insolvency
of bank B. For bank B, too, the same liquidation scenario would apply: savings deposits would be safe, payments could be made from its customers’ current deposits, and loans that it granted to non-financial companies would not be revoked.
Obviously, the domino effect need not stop there: the
insolvency
of banks A and B could get a bank C – and additional banks – into trouble.
The risk may be limited today, but it will become larger should the new ESM become full-coverage insurance against
insolvency
with no burden-sharing by creditors.
In order to deposit the required new collateral at the ECB, the banks should have had to raise fresh capital, with those that failed to do so entering
insolvency
proceedings.
Only then will the
insolvency
regime be genuinely subject to market forces.
But they must also be wary of analysts who are either incapable of, or uninterested in, distinguishing between causality and correlation, and between
insolvency
and illiquidity.
From May 2010, this
insolvency
was addressed by means of sequential extend-and-pretend loans on conditions that were guaranteed to shrink national income, investment, and credit.
A case of
insolvency
was made increasingly worse by continuing to pretend that it was a mere liquidity problem.
In the US, once Wall Street wakes up to the country’s impending insolvency, interest rates will skyrocket.
Indeed, by 2017, just six years from now, official US debt will exceed 90% of GDP – the value that Carmen Reinhart, Kenneth Rogoff, and other prominent economists believe is an historical indicator of
insolvency.
But the true measure of US
insolvency
is evident from the adjustments needed to reduce the country’s fiscal gap to zero.
So privatization would not protect retirees against the Social Security system’s insolvency; it would merely add enormously to today’s fiscal deficit, because partial privatization entails diverting money to private funds that would have been used to close the gap between government expenditures and revenue.
The only way to continue doing this in 2015 and beyond, however, was to push Greece deeper into
insolvency.
One hopes that the ground is now better prepared for such proposals to take root, before Greece sinks further into the quicksand of
insolvency.
Deluded by the convergence of bond yields that followed the euro’s launch, investors fed a decade-long private-sector credit boom in Europe’s less-developed periphery countries, and failed to recognize real-estate bubbles in Spain and Ireland, and Greece’s slide into
insolvency.
To halt this downward spiral, Ireland’s risk of
insolvency
needs to be put to rest.
Instead, the EU, the ECB, and Ireland have reached a Faustian bargain that keeps Ireland liquid (i.e., it gets euros), but does nothing to halt the growing likelihood of
insolvency
(i.e., its increasing inability to pay back those euros in the future).
A European politician heads the IMF, its board of directors is far more weighted towards Europe than is justified by Europe’s economic relevance, and it is rushing to ease lending conditions to Europe just as EU members are suffering deep
insolvency
problems.
The recently released Chinese Academy of Social Sciences (CASS) National Balance Sheet Report suggests that China is unlikely to undergo a foreign-exchange or national
insolvency
crisis.
That means that 95% of their operations are financed by debt – and thus that only a small negative shock would be needed to push them toward
insolvency.
Eight years after its bankruptcy, the Greek state’s persistent
insolvency
remains an embarrassment for Europe’s officialdom.
And, by ossifying Greece’s insolvency, while pretending to have overcome it, Europe’s establishment is demonstrating its dogged refusal to address the eurozone’s underlying fault lines.
In reality, the prospect of recovery will be dealt another blow, because long-term investors will be deterred by the combination of prolonged
insolvency
and protracted austerity.
The plaintiffs argue that, in the case of Greece, breaching Article 125 required proof that its
insolvency
would pose a greater danger than anticipated when the Maastricht Treaty was drafted.
Rather, the banking system is at the brink of insolvency, with a permanent loss in equity capital.
Portugal – where growth has been stagnant for a decade – is experiencing a slow-motion fiscal train wreck that will lead to public-sector
insolvency.
In Ireland and Spain, transferring the banking system’s huge losses to the government’s balance sheet – on top of already-escalating public debt – will eventually lead to sovereign
insolvency.
Banking on the IMFCHICAGO – The biggest financial nightmare looming over the world economy is the
insolvency
of a large international bank.
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