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So there is a reasonable case that what we're seeing in Italy is a self-fulfilling crisis trying to happen, in which fear of default is precisely what leads to default.
Unless the party in question can be bailed out, the de-leveraging process usually leads to default and insolvency.
This leads to default purpose living.
Frequently reported minor side effects could be successfully dealt with proper instructions on drug consumption, reassurance to patients and prompt symptomatic treatment before it leads to default.
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If there are problems with those loans that lead to default — if the bank didn't properly check a borrower's income, for example — the government can effectively send them back to the bank that made them.
That would lead to defaulting on some debt.
"This leads to defaults, bank bankruptcies, or government bailouts," he said.
In the perfect storm scenario what happens is that falling house prices (leading to a negative equity position in a house) combined with a job loss can lead to default and a foreclosure.
A similar fight almost led to default in 2011, and damaged the nation's credit rating.
Doing nothing could lead to default and the end of American economic supremacy.
He still maintains that unilateral abandonment of the pact would would lead to default and chaos.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com