NBER WORKING PAPER SERIES HOLDOUTS IN SOVEREIGN DEBT RESTRUCTURING: A THEORY OF NEGOTIATION IN A WEAK CONTRACTUAL ENVIRONMENT Rohan Pitchford Mark L. J. Wright Working Paper 16632 http://www.nber.org/papers/w16632 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 December 2010 While all errors are our own‚ we thank Rui Esteves‚ Daniel Klerman‚ Lee Ohanian‚ Christoph Trebesch‚ the editor‚ three anonymous referees‚ and numerous seminar participants for comments
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War‚ Republicans in Congress enacted some of the most forward-looking legislation in American history‚ but they have made no progress recently. Republicans shut down the government and held national health care hostage. They aren’t raising the U.S. debt ceiling until they get what they want and thus shutting down the government. The shutdown cost us millions of dollars in revenue. Republicans are holding the government hostage to get what they want‚ but even they don’t know what they want (Hertzberg)
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A Collateralized Debt Obligation or CDO is (according to The Big Short) a lumping together of many different loans into one big loan. And the market crashed in 2008 primarily because many of these CDOs were full of loans that should have been rated poorly‚ but due to a combination of greed‚ stupidity‚ and fear‚ the CDOs were rated at the highest possible rating‚ a AAA. Think of The Big Short as a CDO. It is a mixture of ideas from lots of better movies‚ all lumped together‚ and it desperately wants
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The United States of America’s government spending is rising‚ deficit is persistent‚ thus the federal debt reached alarming level during recent years. Endlessly skyrocketing the amount of debt in United States of America has been a huge concern to government and citizens. I interviewed two U.S. citizens for their opinions on government spending and national debt so to get different perspectives on this matter. They are Miss. Simpson‚ the History and Economics teacher at Ocean View Christian Academy
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10.3: Deficits‚ Surpluses‚ and the National Debt I. From Deficits to Debt A. Predicting the Deficit- What factors affect the accuracy of the deficit projection? -The way expenditures are reported and changes in the economy B. Deficits Add to the Debt- What is the only way the annual budget can lower the federal debt? -By generating surplus C. A Growing Public Debt- Why do most economists tend to disregard trust fund balances? - Because trust fund balances represent money the government
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2010–present government debt crisis Main article: Greek government debt crisis Greek government debt levels between 1999 and 2010. By the end of 2009‚ as a result of a combination of international and local factors (respectively‚ the world financial crisis and uncontrolled government spending)‚ the Greek economy faced its most-severe crisis since the restoration of democracy in 1974 as the Greek government revised its deficit from a prediction of 3.7% in early 2009 and 6% in September 2009
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National debt ceiling 101: Is a crisis looming? The Christian Science Monitor‚ Mark Trumbull‚ March 8‚ 2011‚ CSMonitor.com In this article‚ Mark Trumbull‚ a staff writer for The Christian Science Monitor‚ points out several different areas that the USA‘s National Debt crisis effects. Trumbull asks nine different questions about the debt crisis and then answer’s them as best as possible. His effort is to bring the words of this huge political battle from a high scope to the reading level of the
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“US AND EU ZONE DEBT PROBLEM AND DOWNGRADE and ITS IMPACT IN GLOBAL FINANCIAL MARKET and GLOBAL ECONOMY” Contents Introduction to the Crisis 3 American Debt crisis 3 The EU Zone Debt Crisis 5 Impact on Financial Markets and Economy 7 The U.S. Debt Crisis and its Impact 7 The EU Zone Crisis and its Impact 8 Conclusion 9 Works Cited 10 Answers to Questions based on Passage Reading 11 Works Cited (For The Questions only) 13 Introduction to the Crisis
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budget deficits and the nation debt. In order to do this; I first had to find out exactly what they were. I will also discuss whether I think the government should operate with a balanced budget. Budget deficit is the amount by which total government spending is more than government income during a specified period; the amount of money which the government has to raise by borrowing or currency emission in order to make up for the shortfall in tax revenues. National debt denotes the total sum of
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SUMMARY: European sovereign-debt crisis is still going on in some countries in eurozone‚ such as Greece‚ Spain‚ Ireland‚ Portugal. The origins of these crises started from Greece when the government borrowed a huge amount of money from foreign investors and was unable to repay. As a result‚ a financial crisis started to hit Greece as the starting point of the crisis over countries in Eurozone. While the old deutschmark (DM) bloc – Germany‚ France‚ etc. experience lower than average growth and inflation
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