The growing gap between mortgage debts and house prices will continue to increase the rate of defaults.

Default rates in the informal sector are high, and lenders may disappear with depositors money, as happened in Wenzhou.

This holds down interest rates on that debt in the short run, but creates even bigger potential losses in the case of potential default.

Either banks need to default on their senior obligations, or the government will need to default alongside the banks.

The best way to get rid of debt (short of default) is to grow out of it.

By creating the European Central Bank, the member states exposed their own government bonds to the risk of default.

By being less concerned with preventing default, we can make risk and reward more congruent with each other.

Europe s leaders were also paralyzed ruling out defaults and devaluations, as well as deficits and stimulus.

But these interest rate spreads make the benefits of non payment greater, so the same shocks can send a country quickly into default.

The costs of default depend on how messy things become when payments stop. What are the legal difficulties?

A default would be painful but so would any other solution.

Some form of default will almost surely be forced upon Greece, and this may be the most preferable alternative.

If markets self correct, they do so only when defaults are registered and punished.

Even in the US corporate sector, defaults will rise, owing to sharply higher corporate bond spreads.

As Chancellor Angela Merkel and her colleagues promote their well defined plan which comes in addition to a plan for bridge financing while in default the cost of default falls.

Second, banks would also suffer because they had sold insurance against default in the form of credit default swaps.

Unfortunately, there is no program to deal with the defaults and foreclosures caused by high loan to value ratios.

Either officials recognize immediately the inevitability of default and waste no resources trying to prevent it, or they believe that a default can be avoided and deploy all the resources at their disposal as fast as possible.

The impulse simply to cut the Gordian knot of debt by defaulting on it is much stronger when creditors are remote and unknown.

That means that lenders could pursue borrowers other assets not just the house in case of default.

Unsustainable private debt problems must be resolved by defaults, debt reductions, and conversion of debt into equity.

This is a new program, and it remains to be seen how well it will work to prevent future defaults.

The borrower is cut off from international markets, and essential imports can no longer be purchased, while large scale defaults threaten to plunge creditors into insolvency.

According to the bonds collective action clause (CAC), this would not amount to a default if 75 of bondholders accepted the change of venue.

This was deemed a credit event, so credit default swaps were exercised anyone who insured against default had to pay out.

Levels of serious crime are low indeed, not higher than other comparably populated areas of Europe and the trend is positive.

It certainly is not attracted by the return and seemingly riskless security of US government paper both of which are much in play in an era of zero interest rates and mounting concerns about default.

When financial markets discovered that supposedly riskless government bonds might be forced into default, they raised risk premiums dramatically.

Every week, a preposterous coterie of European bankers and finance ministers drags itself from one capital to another to discuss which default restructuring plan to adopt.

Even with external assistance, many view default as a near certainty, because the arithmetic of restoring fiscal balance is so daunting.

Banks balance sheets were by then filled with vast amounts of risky mortgages, packaged in complicated forms that made the risks hard to evaluate.

Doubts about the sustainability of government debt produce sudden surges in interest rates, as risk premia rise dramatically with perceptions of the likelihood of default.

In June 2012, Gabon delayed the coupon payment on its 1 billion bond, pending the outcome of a legal dispute, and was on the verge of a default.

Unemployment has remained remarkably low and confidence relatively high.

And, if Spain is at serious risk of default, government solvency is at risk throughout the eurozone except in Germany.

But unemployment continues to rise in the heavily indebted southern countries, and output continues to lag behind Germany and other northern European countries.

Many homeowners who can afford to make their mortgage payments will choose to default, move to rental housing, and wait to purchase until house prices have declined further.

The benefits of default are the savings on future payments by the government especially payments to non residents, who cannot vote.

Default teaches creditors and their governments a lesson, just as it does the debtors mistakes cost money, and your mistakes are your own.

If a government attempts to push the unemployment rate too low, inflation will increase, and so, too, will inflationary expectations.

That concern was expressed by representatives of countries with high HIV prevalence rates as well as those with low rates

Its savings rate has been distressingly low for decades.

Birth rates in the EU are low with the average woman having 1.6 children.

If interest rates are low, we can attract a great deal of money from the public.

The Bank of Communications performance suggests that China s lending boom of 2003 and 2004 could lead to another wave of defaults this year and next.