Default Risk Quotes

The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.

An example of good debt is the debt on the apartment houses I own. That debt is good only as long as there are tenants to pay my mortgages. If tenants stop paying their rent, my good debt turns into bad debt.

Debt is a mistake between lender and borrower, and both should suffer.

Under Bill Clinton's HUD Secretary Andrew Cuomo, Community Reinvestment Act regulators gave banks higher ratings for home loans made in 'credit-deprived' areas. Banks were effectively rewarded for throwing out sound underwriting standards and writing loans to those who were at high risk of defaulting.

I think we ought to all take a step back and remember where we were 24, 48 hours ago, a week ago, two weeks ago - the prospect that was hanging out there that America would not honor its obligations for the first time in its history, and the impact that would have on our economy and the global economy.

Debt, we've learned, is the match that lights the fire of every crisis. Every crisis has its own set of villains - pick your favorite: bankers, regulators, central bankers, politicians, overzealous consumers, credit rating agencies - but all require one similar ingredient to create a true crisis: too much leverage.

Borrowed money, even when owing to a nation by another nation, should be repaid. They hired the money, didn't they? Let them pay it.

The United States has never prioritized or failed to pay any obligation when due during a debt limit impasse. Despite the institutional risks and the lack of clear legal authority, we assume that Treasury will attempt to prioritize payments in a last-ditch effort to avoid default.

Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques.

Congressman Frank and Senator Dodd wanted the government to push financial institutions to lend to people they would not lend to otherwise, because of the risk of default. ... The idea that politicians can assess risks better than people who have spent their whole careers assessing risks should have been so obviously absurd that no one would take it seriously.

Here's the perversity of Wall Street's psychology: The more Wall Street is convinced that Washington will act rationally and raise the debt ceiling, most likely at the 11th hour, the less pressure there will be on lawmakers to reach an agreement. That will make it more likely a deal isn't reached.

For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through default.

If we get to the point where we damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity.

The interest on our debt is going to collapse this country.

If you are a borrower, the more you borrow, the more it costs.

No nation can miss interest or principle payments without some negative impact on its credit standing.

The rating agencies historically actually did a pretty good job rating regular bonds.

Private student loans should be avoided at all costs.

You wouldn't want to underestimate the perfidy of the government. I have no doubt that the government will need to increase revenues substantially to avoid default on either debt or social welfare promises. How they will increase those revenues, I can't predict.

I fully believe that the U.S. has the obligation to honor its debt.

If a division becomes insolvent, the credit markets' reaction to that is immediate - regardless of what period of time you think you have to remedy.

The debt ceiling at some point has to be raised. I don't think there's anybody that questions the fact that if we ended up getting in a situation where the U.S. government was sending out IOUs like the state of California did at one point, that ends up creating quite a brand problem for our country.

The Greeks do not have the option of borrowing because nobody will lend to them.

After everyone has had a chance to bluster, posture, and pontificate, we are left with one basic question: under any foreseeable circumstance, would it be in our national interest to default on our debt? The answer is unequivocally no.

Typically in a panic, corporate bonds sell off as investors fear weaker growth, tighter financial conditions, or need liquidity.