Posted on 05/02/2016 3:39:05 PM PDT by cotton1706
“What suckers we are.”
Well, they sold many bonds yielding 10% or more by saying “hey, we can’t default by law” until of course they couldn’t make the payments.
Now they want the law changed so they can default. Right now its investors, hedge funds, etc.....the sort of folks that are politically connected and can possibly help make a bailout happen.
I predict RYAN-O sides with Puerto Rican liberals!
I appreciate your posts, you’re helping me to understand this.
“I appreciate your posts, you’re helping me to understand this.”
You are supposed to be confused about this. They guys who are running commercials saying “don’t bail out PR” actually want a bailout.
PR wants to be able to continue the party and corruption. Its actually cheaper for them (for now) to just default and make no payments at all. If they get to declare Chap 9 bankruptcy - they (PR gov’t) turn over control to an overseer, and they lose control over the existing revenue and all the control they have come to enjoy.
An actual bailout that allows a corrupt and bloated government to continue is the worst of all worlds.
A sane, managed Chap 9 may actually instill some discipline (at least short term) in government. They’ll get some financing to operate and transition to a new paradigm for them.
They’ll have to sell assets, privatize things, and shrink government. i could turn out OK if the gov’t can give up on corruption....but they are Puerto Ricans, so that’s going to be the most difficult thing of all.
Chap 9, with limited financing and forced privatization as the means to pay back is probably the right thing to do. Assuming it’s even possible.
Sounds like a charity that the Clinton Global Crime Initiative could take on. Just a couple billion and they have all that cash left over after not doing anything in Haiti.
Spintreebob:
Good observations. I wondered why Puerto Rico became a basketcase after trying to recover its economic sanity.
I’d like to hear more about it.
a few articles from a search. I did not remember Fortuno’s name correctly.
http://conservativereport.org/luis-fortuno-puerto-rico-economic-revival/
http://conservativereport.org/luis-fortuno-puerto-rico-economic-revival/
http://www.reuters.com/article/puertorico-economy-idUSL2E8DLFKI20120221
http://news.cornell.edu/stories/2010/03/governor-discusses-puerto-ricos-political-status
http://www.puertoricoreport.com/fortuno-speaks-on-puerto-ricos-economy/#.VylHMHpECC4
http://www.puertoricoreport.com/fortuno-speaks-on-puerto-ricos-economy/#.VylHMHpECC4
Don’t bail out P.R.
They have been living high on the hog for too long...hell they even have mandatory Christmas bonus.
No. Let them cut spending FIRST and then maybe give them something.
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