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If Germany did give its own repayment guarantee, there would be such heavy demand for the bonds from the Middle East and elsewhere that Chinese money might not even be needed, the person said.
He lifted a legal shield that protected Caesars' parent company and the two investment firms from lawsuits over the parent company's ending the repayment guarantee and the shifting of assets and money out of the now-bankrupt business.
Some familiar with state finances, like Albert Porroni, executive director of the nonpartisan Office of Legislative Services, said that recourse to the state's income tax as a secondary repayment guarantee was included in the prospectus of many of the state's bond issues as an additional assurance to the underwriters.
This involved the Greater London Authority borrowing the £1 billion, with a repayment guarantee provided by the UK Government to minimise borrowing costs [28].
How do we respect the fact that a full personal repayment guarantee is a very different "cost" to a business owner who ends up defaulting on their obligation compared to a product that does not carry personal repayment guarantees?
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The administration's view, shared by a number of Democratic lawmakers, is that the private lenders should no longer be paid by taxpayers to operate a virtually risk-free business in which they essentially use taxpayer dollars to originate loans, with repayment guaranteed, and then resell those loans to the Treasury.
Lenders were also throwing cheap money at other borrowers, such as corporations, with loose requirements for collateral or other repayment guarantees, he adds.
He also counseled Obama against the one-sidedness of a recovery policy founded on repayment guarantees to financial outfits such as Citigroup and Bank of America: the policy, that is, favored by Summers and Geithner in preference to massive job creation and a major investment in infrastructure.
China has been spooning out loans primarily to Ecuador, Argentina, Venezuela and Brazil, with repayments guaranteed by "long-term commodity sales".
China has been spooning out loans primarily to Ecuador, Argentina, Venezuela, and Brazil, with repayments guaranteed by "long-term commodity sales"—which essentially means, "destroying the rainforest, dredging it of its natural resources, making the money back, and leaving everything to fester and die".
The list of Obama-bestowed benefincludesudes Head Start when Julia's a tyke, tax credits and Pell grants to carry her through college and low-interest loan repayment afterward, guaranteed birth control when she's a 20-something and government-sponsored loans when she wants to start a business, all of it culminating in a stress-free retirement underwritten by Medicare and Social Security.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com