Posted on 07/05/2015 3:52:11 PM PDT by SeekAndFind
Baloney.
“So who is going to get left holding the bag?”
The US taxpayers!
What do I win?
“Of course Puerto Rico is just the tip of the iceberg of the coming debt crisis in the western hemisphere, just like Greece is just the tip of the iceberg of the coming debt crisis in Europe.”
There’s about a quadrillion US dollars worth of derivatives out there. Who’s gonna pay all that when the whole system collapses?
Looks to me like it’s time for one of two things: either global depression or hyperinflation (fueled by QEinfinity).
crank up the presses Uncle Sugar.
It’s almost like they could benefit from a large military instillation that would bring in millions of dollars a year to their economy...
The problem is not the borrowers not paying. That’s a small problem.
Allowing banks to create money by booking unpayable debt as an asset - that’s a BIG problem.
This article was written by someone who does not understand the first thing about finance.
1. Oppenheimer is not the beneficial owner of the bonds it holds. They belong to investors who bought into the fund, so these investors, and not Oppenheimer, will lose money. If millions of mutual fund investors lose 5% or 10% of their money, it would be bad, but would not be the first time this has happened.
2. Derivatives are generally use to hedge risk, not increase risk. MBIA and Ambac are not stupid. They saw what happened to AIG when they took naked derivative positions, so they have undoubtedly used derivatives to lay off the risk on institutions who have solid balance sheets and can bear the losses.
3. Many Puerto Rican bonds are owned by hedge funds who avowedly take big risks in order to reap big gains. Well, sometimes you lose, too, and they are well aware of this and able to bear the losses.
OMG...now that made me spit coffee all over my monitor haha
There is not enough money in the world if the derivative house of cards start to collapse.
Puerto Rico is not going to run out of money. They will still collect taxes.
They need to cut their expenses, and they don’t want to do that.
The government treasury is like a lake filled with money. Money flows into the lake (taxes), and money flows out of the lake (expenses).
My guess is that the biggest problem they have is thievery. People are not paying the taxes they should be paying and people are taking money from the treasury when they shouldn’t be.
We all kind of sigh at the rampant thievery in this country, but it’s a huge problem.
If someone is stealing, then the honest people have to pay more for the same product or service.
That leaves honest people with less money which means they have less freedom.
Thieves enslave everyone.
I’m sorry, but we are going to have to start executing thieves in this country. They enslave us and they are not afraid of jail.
Excellent irony, my compliments.
Their total debt is less than one month of 4 + years of $85B/month QE.
Filled with homo- and transsexual forces and commanders.
Who is going to pay it?
Nobody, that's who.
It can't be paid back.
There isn't enough money on planet Earth to pay it back.
So this fraudulent economic system the West and the rest of the planet is practicing will collapse. It has to. It based on lies and theft with nothing to back it up.
Yes, the Greek debt crisis is larger, as Greece currently owes about $350 billion to the rest of the planet. But only about $14 billion of that total is owed to U.S. financial institutions. But with Puerto Rico, things are very different. Just about the entire 73 billion dollar debt is owed to U.S. financial institutions, and this could potentially cause massive problems for some extremely leveraged Wall Street firms.
Puerto Rico is subject to the same minimum wage laws as the rest of the USA.
Disconnecting labor costs from reality causes bad things to happen.
3. Many Puerto Rican bonds are owned by hedge funds who avowedly take big risks in order to reap big gains. Well, sometimes you lose, too, and they are well aware of this and able to bear the losses.
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MUST WATCH TV ... Puerto Rican Finance Minister interview https://www.youtube.com/watch?v=DDIQNO8PS8M Fraud and theivery pure and simple ,, combined with a willing dupe (hedgies) that have funds to burn.
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