There will be severe and possibly irreparable damage if the United States defaulted on its commitments.
If the host government were to default on its commitments, investors should be able to seek redress before special tribunals or national courts.
Some venture capitalists have sued limited partners who threatened to default on capital commitments, which they promise up front and pay over several years.
We present an algorithm for learning when to default on group commitments based solely on observed values of group-related tasks and discuss the applicability of this algorithm in settings where multiple agents may be learning.
A year ago, Sid Bass, the Texas investor, had to unload $1.8 billion of Disney stock to cover margin calls, and immediately, phones started ringing with speculation that he would default on his commitments to the Museum of Modern Art, Yale University, the Aspen Institute and a host of other institutions he and his wife, Mercedes, have favored.
When A.I.G. began to teeter in the last few days, it became clear that if it defaulted on its commitments under the swaps, it could set off a devastating chain reaction through the financial system.
"Chinese mills defaulted on their commitments and bought at spot prices which were below contract," said analysts at Liberum Capital, in a note to investors following the company conference call.
Income also plays a big role in the likelihood of defaulting on financial commitments, with agreeable people in higher income brackets less likely to do so than those in lower ones.
If we are forced to default on our financial commitments, we won't be able to co-sign a loan for our daughter.
