“Ryan, you dweeb, do the right thing. No bailouts!!!”
Here’s the problem with that:
The right thing (for taxpayer and for PR) is to let them use Chapter 9 Bankruptcy code - which would take some congressional action.
The wrong thing is to take the “assets” on the Feds balance sheet.
the problem stems from the folks lobbying - the folks who actually want a “bailout” (the option where the Fed buys the assets at face value - and they get paid) are calling the extension of the bankruptcy code a “bailout”
It’s a clever game they are playing.
It’s true if they just leave the debt in default that this would be the worst option for the average PR citizen.
If they BK creditors will have a seat at the table.
If they get bailed out by the Fed - well the party just continues, they borrow more money and spend until they need another bailout.
No one American dollar for Puerto Rico, period.