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When the real default rate became known, as it inevitably did, the bonds collapsed in value.
A real default would be an unprecedented event in American history -- and a terrifying event for global financial markets.
That colossal machination worked because Drexel and its colleagues were able for a while to deny the real default rate of the bonds.
Carrió, a legislator of the middle-of-the-road UNEN political party, last night laughed off the government's claim that there can be no real default because it has paid restructured bond holders.
And given the absence of real default risk, long-term interest rates should be more or less equal to an average of expected future short-term rates (not exactly, because of maturity risk, but that's a fairly minor detail).
No principal is due until later next year, giving the beleaguered of Nicolas Maduro a few months of breathing room to save Venezuela from a real default.
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Steve Forbes: If you look at the bad mortgages and actual real defaults, it's bad but seemed no worse than the crisis that we faced 20 years ago.
As the credit crisis deepens, the risk of actual defaults becomes real.
Steven Baum created Pillar Processing in 2007, a provider of real estate default services, and it is located in the same office complex in Amherst as the law firm.
Although very few are watched in real time, default processes of collection and storage, if done comprehensively, would mean that records could be accessed on anyone at any point in the future, aided by increasingly powerful computers and sophisticated algorithms that make it ever easier to pinpoint individuals.
He noted that Brazil, unlike South Korea, Indonesia, Russia, and other victims of the financial firestorms over the last year, has not devalued its currency, the real, or defaulted on debt.
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