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To that end, the article differentiates defaults caused by insolvency from defaults caused by illiquidity.
Lee said the community colleges group had previously warned the Education Department about defaults caused by split-servicing.
The move, announced late Tuesday and further detailed on Wednesday, concerns an Obama administration decision not to punish as many as 20 schools for loan defaults caused by questionable servicing practices overseen by the Education Department.
Among them is an exemption for forgiven mortgage debt that's an essential part of a broader federal effort to solve a nagging problem, namely the spate of defaults caused by the recession.
Prolonged time between diagnosis and treatment, treatment interruption, and treatment defaults caused by migrant work might increase the risk for multidrug-resistant TB.
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The use of margin as a risk management tool requires the member to provide collateral against a deposit requirement designed to protect the clearing house against default caused by a significant movement in the price of an instrument or instruments.
While many members of both parties say they would like to avoid either a shuttering of the government as of Oct. 1 or a default caused by failing to increase the federal debt limit, no acceptable solution has emerged.
The article then examines the consequences of a U.S. debt default, demonstrating that even a temporary default caused by illiquidity would have severe economic and systemic consequences, significantly raising the cost of borrowing and causing securities markets to plummet.
WASHINGTON -- A federal government default caused by a failure to raise the debt limit could trigger a worse financial crisis than in 2008, the Treasury Department said Thursday in a report designed to pressure Congress to act before the Oct. 17 deadline.
Another shock would be a sharp rise in mortgage defaults -- caused by a spike in oil prices, for example, or another hit to consumers' budgets -- that could lead banks to cut back on lending and lead home prices to fall.
United for a Fair Economy reported that roughly 3.4 million families experienced foreclosure in 2009 and that almost 60% of mortgage defaults were caused by unemployment.
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