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What had been an implicit guarantee became an explicit one.
Dubai's repudiation of that implicit guarantee marks an important milestone.
"It's entirely a function of deposit insurance and the implicit guarantee that the JPMorgan counterparties have".
The E.C.B. would probably be much less likely to accede to such an implicit guarantee.
Yes, the implicit guarantee encouraged excessive risk, but that had been the case since 1968.
This becomes far worse when the risks are given an implicit guarantee by the taxpayer.
As a result, the US provided an implicit guarantee for those mortgages.
So withdrawing the implicit guarantee on the rest of their bonds would be likely to cause tremors in financial markets.
When it comes to Fannie Mae and Freddie Mac, the presumed government backing is called an "implicit guarantee".
Much depends on whether SIFIs are now perceived to have an implicit guarantee, and on whether that can be monetised.
Banks' other activities would lose the implicit guarantee that lets them borrow cheaply.Defining what is virtuous is hard, though.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com