Typical DEFAULT clause

admin — Sun, 26 Jul 2009 22:47:09 +0000

In case of default of any of the covenants herein, Nonresident may enforce the performance of this Agreement in any modes provided by law and the Resident hereby waives any statutory notice of such default. This Agreement may be forfeited at the Nonresident’s discretion if such default continues for a period of three days and thereupon this Agreement shall cease and come to an end as if they were the day originally fixed herein for the expiration of the term and Nonresident’s and/or its agents shall have the right, without further notice or demand, to reenter and remove all persons and occupants and property therefrom without being guilty in any manner of trespass, or without any prejudices to any remedies for arrears of rent or breach of covenants. Nonresident may resume possession of their premises and relet the same through the remainder of the term at the best rent Nonresident may obtain for account of the Resident who shall make good any deficiency, including the cost of reletting. In the event of cancellation or termination of this Agreement by Nonresident under the option provided for herein, Nonresident shall deduct from the Resident’s security deposit (if any) all unpaid rentals and damages and charges for which the Resident is liable hereunder any balances shall be returned to the Resident.

Fed Action and the Yield Curve, November 1998–July 2003

admin — Mon, 27 Oct 2008 11:40:26 +0000

The previous example occurred in the middle of what became known as “goldilocks” economics, not too hot and not too cold. It shows an example of a central bank taking early action to choke off inﬂationary pressures. While inﬂation remained in check through the 1990s the economy enjoyed one of its longest ever periods of sustained growth. The previous example demonstrated the success of the Fed’s monetary policy at that time. It had a much harder job in the period November 1998 through to July 2003 with the threat of a deﬂationary recession a real possibility:
November 1998–October 1999. The Fed left the discount rate unchanged through this period. Rates at the long-end star ted to drift up and despite their low nominal level they were relatively high in real terms and suggested rising inﬂationary expectations.
November 1999–January 2001. Over the course of a year the Fed increased the discount rate by approximately 150 bpts. These hikes continued through the ﬁrst half of 2000 even though long-term rates had peaked in Januar y and (with the beneﬁt of hindsight) appeared to be heading down. By Januar y 2001 long-term rates had fallen about 150 bpts from the peak and it appeared as though the Fed had overdone its tightening. The yield curve was inver ted in January 2001. This coincided with the bursting of the technology and stock market bubble.
February 2001–December 2001. Over the course of 2001 the Fed continued to cut rates aggressively and by the end of the year had cut nearly 500 bpts in total. At 1.25% the discount rate was at a historic low. Despite these cuts long-run rates continued to fall and by June 2002 had fallen a further 100 bpts. With very mixed signals of the economic outlook the Fed cut a further 50 bpts in November 2002 but these had little visible effect. The shape of the yield curve at the end of July 2003 remained largely unchanged from June 2002. The outlook in July 2003 remained very mixed with risks of a deﬂationary recession balanced by hopes of a modest recovery.

Business oportunities » loan

Typical DEFAULT clause

Fed Action and the Yield Curve, November 1998–July 2003