The rich rule over the poor. The borrower is servant to the lender.

The rich rule over the poor. The borrower is servant to the lender.

The rich ruleth over the poor, and the borrower is servant to the lender.

The rich ruleth over the poor, and the borrower is servant to the lender.

debt service coverage reduces the financial risk to investors and translates into lower borrowing costs for the borrower.

When investors make less risky loans, they require a lower risk premium , thereby reducing the cost of borrowing to the borrower.

And it shall be, as with the people, so with the priest as with the servant, so with his master as with the maid, so with her mistress as with the buyer, so with the seller as with the lender, so with the borrower as with the taker of usury, so with the giver of usury to him.

And it shall be, as with the people, so with the priest as with the servant, so with his master as with the maid, so with her mistress as with the buyer, so with the seller as with the lender, so with the borrower as with the taker of usury, so with the giver of usury to him.

In the 1990 s, Argentina tied its hands with a dollar pegged currency in order to enhance its credibility as a borrower. The strategy worked too well the large credit inflows that it attracted triggered an inflationary boom that reduced the country s competitiveness.

Incentives for brokers and credit rating agencies have been even more perverse. In the United States, brokers were selling mortgages without checking whether the borrower had the means to repay.

Philosophically, the debt forgiveness approach rests on the belief that creditors share culpability for defaults with debtors, since they made the bad loans in the first place. As long as the borrower has not misled the lender at the time of taking the loan, the lender bears at least some responsibility for the transaction.

In the old days, when borrowers found it impossible to make their payments, mortgages would be restructured foreclosures were bad for both the borrower and the lender. Securitization made debt restructuring difficult, if not impossible.

Right now is precisely the time to do so, given that the United States has become, without rival, the world s most reckless borrower. The US is draining a whopping 75 of the world s surplus savings.

After the depreciation, the collateral, valued in dollars, is worth less. Loan covenants have likely been broken, and lenders begin demanding that the borrower either put up new collateral or deleverage and repay part of the loan.

For both borrowers and creditors, the risks and costs are enormous. The borrower is cut off from international markets, and essential imports can no longer be purchased, while large scale defaults threaten to plunge creditors into insolvency.

The key to mortgage regulation is the concept of risk weight, a measure that increases with the probability that a borrower will default. For example, a loan to AAA rated Microsoft has a 0 risk weight, meaning that it is virtually risk free.

So there is an upside to today s massive US fiscal and current account deficits. The structure of global imbalances, with the US the big borrower and emerging markets the creditors, presents a rare opportunity to finance a change in governance at the IMF.

Decree 78 2002 ND CP by the Government on credits for the poor and other policy entitlement groups stipulates that for a less than VND 10 million loan, the borrower needs only an application form and land use right certificate without collateral.

Just as the dollar is often the unit of account in debt contracts, even when neither the borrower nor the lender is a US entity, the dollar s share in invoicing for international trade is around 4.5 times America s share of world imports, and three times its share of world exports. The prices of some 93 of US imports are set in dollars.

From the mighty eBay, the grandfather of exchange marketplaces, to car sharing companies such as GoGet, where you pay a monthly fee to rent cars by the hour, to social lending platforms such as Zopa, that will take anyone in this audience with 100 dollars to lend, and match them with a borrower anywhere in the world, we're sharing and collaborating again in ways that I believe are more hip than hippie.

Such automatic borrower initiated filings, if made legal by Congress, could reduce the household debt overhang without the need for government subsidies. To the extent that the alternative is costly foreclosure proceedings that make borrowers and lenders worse off, this proposal should attract the support of both sides.

If the massive wave of defaults on securitized mortgages was purely the result of bad luck, we would expect that the characteristics reported to investors would not differ from those recorded in the banks databases. This is especially true of characteristics that are relevant to default risk, such as whether the borrower was an owner or an investor, or whether there was a second lien on the property.

A transaction involving potatoes happens at one point in time only the buyer parts with her money, the seller parts with his tubers, and that is it. A financial transaction, by contrast, happens over time the borrower gets the money today and promises to repay in a month, year, or decade.

The second adverse effect of deflation is to raise the real interest rate, that is, the difference between the nominal interest rate and the rate of inflation. When prices are rising, the real interest rate is less than the nominal rate since the borrower repays with dollars that are worth less.

Chen Delin said that currently together with the mortgage loan provided by the developer, the mortgage percentage of the borrower can reach 85 90 . If the property price fell by 10 , there would be negative assets (i.e. the market value of the property fell below the level of the total outstanding mortgage loan).

After Argentina s unilateral default in 2001, many investors saw more clearly the need to allow explicitly for less drastic alternatives ahead of time, and so incorporated so called collective action clauses into debt contracts. If the borrower runs into trouble, CACs make it possible to restructure debt with the agreement of a substantial majority of creditors (usually around 70 ).

The car loan market underwent a mini boom in 2003 04, but non repayment rates in excess of 50 forced banks to pull back. The difficulty of repossession (where did the borrower park the car?) and sale (the used car market is still in its infancy) meant that most of these bad loans had to be written off.

Start with the proposal made by Martin Feldstein, who recommends a trade the government should reduce the value of mortgages when they are sufficiently underwater, with the government and the banks splitting the losses in exchange, the borrower must agree that the new loan becomes full recourse. That means that lenders could pursue borrowers other assets not just the house in case of default.

As (lovely as) rubies and as (beautiful as) coral.

As (lovely as) rubies and as (beautiful as) coral.

Food is as important as energy, as security, as the environment.

We have trained girls as carpenters, as masons, as security guards, as cab drivers.

It can be something as prosaic as shoes, and something as complicated as overthrowing a government.

Not as great a general as Napoleon, not as great a statesman as Frederick the Great.

And you just want to learn as much as you can as soon as you can.

A man is as old as he feels and a woman as old as she looks.

As well as with a series of provisions such as

I've rescued children as young as three years, and I've rescued women as old as 40 years.

As long as you are here, we might as well begin.

He described this expedition as 10 times as dangerous as Everest.

I was as smelly and as depressed as anyone in line.

As we all know, this challenge remains as urgent as ever.

It's there, but it's not nearly as important as happiness, and it's not nearly as important as love.

But in the end she is as bitter as wormwood, and as sharp as a two edged sword.

But in the end she is as bitter as wormwood, and as sharp as a two edged sword.