You get a small tax cut -- which was never in question btw -- and the wealthy get a much huger one that must be financed by borrowing from China, and which will not be repaid by the wealthy.
When capital was cheap and easy, a lot of money was wasted on bad investments and loans that will not be repaid.
Many of these individual debts will not be repaid, and yet, once they'd been bundled and stripped, they were magically reconstituted as investment-grade debt products — worthy paper.
It is likely to conclude that at least half the cost of student loans will not be repaid, and therefore count as public expenditure.
More immediately, it means having the honesty to admit that the full Greek debts will not be repaid, and being ready to negotiate towards something more realistic".
Banks have always been at risk of two things: that the loans will not be repaid, and that customers will want to withdraw their deposits faster than the bank can turn its assets into cash.
In theory, credit ratings should reflect the risk that a lender will not be repaid, and are thus inversely related to the interest rate the lender demands to hold a debt.
When Americans overwhelmingly believe that taxes have gone up, the economy is shrinking, that the Wall Street bank rescue money will not be repaid and that the stimulus did not create jobs — all demonstrably false — somebody has not been doing something right.
But, the OECD annual report says, much of this will not be repaid and that a "well-developed system of financial support" has allowed rising numbers of students to go to university.
The bottleneck is the credit squeeze — the reluctance of banks and other financial institutions to lend because of fear that they will not be repaid, given the defaults and foreclosures spreading in the mortgage market.
