Posted on 06/14/2016 3:13:13 PM PDT by Olog-hai
Majority Leader Mitch McConnell said Tuesday the Senate will consider a rescue package to ease Puerto Rico’s financial crisis before the U.S. territory’s $2 billion payment to creditors is due July 1.
The House overwhelmingly passed legislation to create a new control board and restructure some of Puerto Rico’s $70 billion debt last week. The Senate is expected to take up the same bill “sometime before the end of the month,” McConnell, R-Ky., told reporters Tuesday.
Puerto Rico has already missed several payments to creditors while a lengthy recession has crippled commerce, sparked unemployment and driven hundreds of thousands of people to the U.S. mainland. In a rare display of political unity, the House bill had the support of President Barack Obama, House Speaker Paul Ryan, R-Wis., and Minority Leader Nancy Pelosi, D-Calif., who see it as the best hope for the island’s 3.5 million Americans. …
(Excerpt) Read more at hosted.ap.org ...
Let's make a deal.
Mr. Trump....pick up the phone so we don't get scr**** again.
Restructuring is OK, bailing out is not, in my book.
Under restructuring, the bondholders take a hit. I suppose that might not seem fair at first glance, but it’s a lot better than the taxpayers taking the hit. Puerto Rico’s bonds sold because they offered a higher than average rate, and they offered that rate because they were risky.
In fact, a year or so ago, I distinctly remember reading in either Barron’s or the Wall Street Journal the opinings of some heavyweight bond investor that he was investing in the Puerto Rican bonds because he believed the US Congress wouldn’t let them default (or for that matter, restructure). This guy took the risk... he deserves to take the hit in the form of a reduced or delayed payout, and so do others like him.
It’s no different than when one invests in junk bonds. Sometimes they pay off as promised, sometimes they do not.
Apparently the Bankruptcy Code has a way for bankrupt municipalities to restructure (I think its Chapter 9). Puerto Rico couldn’t do that because it’s not a municipality. As I understand it, this intervention allows that to happen. I don’t mind that. What I would mind would be if Congress voted $$$$ to pay off the bonds.
BOHICA.
This is not aid for Puerto Rico.
Puerto Rico is an unincorporated territory of the United States.
The bonds were issued in the name of the United States.
For all this huffing and puffing, this bill is merely the United States wrangling with how to make good on its obligations.
The consequence of NOT doing so is dire.
If the United States defaults on its bonds, then its bonds are no good anywhere in the world.
No one will buy bonds from a nation who will not honor them.
Not paying on the bonds would be game over.
Romney has an off shore account there in Puerto Rico, the reason that RINO RYAN fought so hard to get passed...
This account came about when Romney headed Baines Capitol...of course RINO RYAN and Turtle head and the rest of the uniparty are going to okay it...it’s what they have been told to do, besides they have to ‘pay for their positions’ or it gets taken away from them....Clinton Cash, page 4....
In 2013 I published a follow-up called EXTORTION, which argued that members of Congress from both parties were in the habit of ‘extorting’ campaign contributions and other favors from businesses and out side groups. Money flowing into politics was not just about outside interests trying to ‘bribe’ politicians; politicians were knowing putting outside interests in a position where they had to buy ‘protection’ from them. I also released to the public for the first time the ‘party dues’ lists whereby politicians were required to pay a certain amount of money to their party in order to obtain seats on certain congressional committees. The more important the committee, the more you were expected to pay. I further explained how politicians from both parties were using leadership PACs to feather their own nests, tapping those funds to pay for things that enhanced their own lifestyles”....Clinton Cash page 4
Where the Money Lives
For all Mitt Romney’s touting of his business record, when it comes to his own money the Republican nominee is remarkably shy about disclosing numbers and investments. Nicholas Shaxson delves into the murky world of offshore finance, revealing loopholes that allow the very wealthy to skirt tax laws, and investigating just how much of Romney’s fortune (with $30 million in Bain Capital funds in the Cayman Islands alone?) looks pretty strange for a presidential candidate.
http://www.vanityfair.com/news
by Nicholas Shaxson,
|July 3, 2012 12:00 am
Top Bond Holder of Puerto Rican debt is....drum roll...Bain Capital...Mitts company
How can one pay when the only source of payment is fiat currency backed by nothing and which can be printed near-instantly?
Fuqum!!!
Not one dime for Mexirico
Let them capsize (yes I know thats Guam, same difference)
You know, I can’t even stand to see Mitch McConnell’s name in print.
Here comes the bought and paid for RINOs to bail out their bond-holding masters.
Bain will get their bailout.
Maybe then Mittens will shut up.
Ah, yes. There is that.
Worthless paper dollars issued to shore up worthless paper bonds.
Sounds like a recipe for a market crash.
And soon.
There is little doubt that McC will add to the debt. He will just say he is doing what his Kentuckians want done.
It’s a shame that KY defeated the Democrat Walter Huddleston in 1984 considering what they bought instead.
That was before I moved here. But my consolation is that I’m no longer in Florida. I wish I had left Florida a long time before I did, ten years ago.
Who will bail out the U.S.A. after we bail out PR, CA, IL, NJ, banks too big to fail, auto makers, the list goes on but the money does not. The dollar is teetering as it is, scary is an understatement.
When it crashes, I wonder if there will be a civil war, a world war, or maybe both?
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