The problem gets worse when those who buy bonds issued by banks conclude that their investments are effectively guaranteed by the government".
Since the current union-endorsed system of tenure makes no distinctions between good and bad work, even the worst teachers are effectively guaranteed a job for life.
Bank customers are effectively guaranteed the right to seek unlimited redemptions of commercial bank money on demand (that is, without delay); any commercial bank refusing to honour the obligation to redeem its bank money is typically deemed insolvent.
All universal and inalienable citizens' fundamental rights and freedoms are effectively guaranteed.
One is it designates a number of banks as too big to fail, and they're effectively guaranteed by the federal government.
Since the debt of banks and other big financial firms is effectively guaranteed by the state already, this would not actually add to the liabilities of taxpayers.
Mitt Romney raised the issue at the first presidential debate, contending that Dodd-Frank should be repealed and replaced because "it designates a number of banks as too big to fail, and they're effectively guaranteed by the federal government.
Mr. Romney called this policy "an enormous boon" for Wall Street because "it designates a number of banks as too big to fail, and they're effectively guaranteed by the federal government".
Raising private capital by rights issues or otherwise would then become next to impossible, and the taxpayer would be left holding the baby – that is, effectively guaranteeing the bank's creditors up to the value of the preference shares.
A drainage pipe cannot be effectively guaranteed.
At the same time, the security of platform system is effectively guaranteed during booting.
