Posted on 05/16/2016 6:14:37 PM PDT by WENDLE
The Puerto Rican Government squandered the capital raised from the sale of these bonds on operating expenses and transfer payments. They ate it. These bonds were tax-free to make them a better deal and they were not insured. The Puerto Ricans and their officials should take the “haircut”, not the United States tax payers. Create a Go Fund Me site for Democrats and Paul Ryan to donate to... don’t hold a gun to my head and tell me it is my obligation.
Same Paul ryno that wants to shift money from social security recipients to puerto rico bail out . Dont let the folks tell you it is just allowing bankruptcy. I know about bankruptcy law. What happens is “restructure” with infusions of capital to pay the wall street idiots that loaned them money— NO BUENO!!
Let me tell you what is happening . Puerto Rico has handed out $77 billion in bonds to idiots on Wall street that bet you would guaranty that crappy drbt so they would finance them. The money went for welfare and government Unions. Puerto Rico has $44 billion in unfunded pensions. This isn’t about debt “restructure”— this is about cutting Treasury department checks to WALL STREET!~! The same Wall street that bought Illinois crap debt and California debt. We don’t pay for for state debt— It is not our concern . We darn sure don’t want to pay Wall street for PR debt.
They don’t speak our language and they have per capita income of less than 1/2 of ours because they are on the DOLE!!STOP RYno!!
So well reasoned and stated. What Ryno and the establishment are doing is receiving bribes from Wall Street in order to pay those crappy bonds back. That is what this is ALL ABOUT. They think we are stupid and don’t know. This is why TRUMP has wiped them out. They know the end is very near . They are desperate to pay this back to wall street for all the money they and their spouses have received . The entire thing is a robbery from the people.
Yes but all these puerto rican takers vote dem
Gots to bail em out
Illinois is next
It violates the Constitution. It will be immediately enjoined in Federal court. Congress cannot pay the debts of a foreign country.
Oh just take it out of Social Security. They won’t miss it. (Sarc)
I’m not interested in ‘saving’ fools on Wall Street from taking excessive chances... knowing they’ll be bailed out.
Me either!
Maybe someone will propose that at some point, and if that happens, you'll have a lot of company in your outrage. But that is not what is happening right now.
The fear is that PR will keep trying to pay these bonds and pensions haphazardly, will have no money to pay to keep hospitals and schools running, etc., and so will then come hat in hand to Congress to stop people from dying. And then, whether your or I want it, some taxpayer money may indeed get paid.
What needs to be done is a budget -- pay a certain amount to bondholders, and a certain amount to pensioners, and keep the government running. The pensioners and bondholders are going to have to suck up those losses themselves. That's what some in Congress are trying to do now, before we get the weepy images of dying kids on TV, and bleeding hearts pouring taxpayer dollars into PR.
You getting all fired up about attempts to restructure that debt so that it can be handled without a taxpayer bailout is exactly the kind of thing that will make a bailout more likely.
LOL - yeah, I kinda guessed that from your earlier comment...
Ok, I understand your confusion. Here is how it will work so you can see what will actually happen.
The “bankruptcy”, enforced by US bankruptcy court, will stop all creditor collection cold. Then a “plan of reorganization” will be quickly adopted where in exchange for USA infusion of $10- 20 billion NOW, the debts will be GUARANTEED by the USA assuring Wall Street. Wall street will extend the terms and now sell the debt on the secondary market like hotcakes like they did when the stupid government guaranteed low income fat mortgages!! The joke is that we will be placated by the installation of a “CONTROL BOARD” to “watch over things” since we now have billions in the game and soon will have $70 billion in the game ( plus 44 billion for union retirements!!) because of our guarantees. The statute they want to pass says that the Control Board SHALL HAVE THE POWER to pay debt and to guarantee debt!! A BAIL OUT!! We don’t even do that in Illinois. But if you read this bill it may apply ti other states!!! There is no permission in the Constitution to pay a foreign countries debt with our money. There is no constitutional authority to pay the debts of Illinois.
Ok, I understand your confusion. Here is how it will work so you can see what will actually happen.
The “bankruptcy”, enforced by US bankruptcy court, will stop all creditor collection cold. Then a “plan of reorganization” will be quickly adopted where in exchange for USA infusion of $10- 20 billion NOW, the debts will be GUARANTEED by the USA assuring Wall Street. Wall street will extend the terms and now sell the debt on the secondary market like hotcakes like they did when the stupid government guaranteed low income fat mortgages!! The joke is that we will be placated by the installation of a “CONTROL BOARD” to “watch over things” since we now have billions in the game and soon will have $70 billion in the game ( plus 44 billion for union retirements!!) because of our guarantees. The statute they want to pass says that the Control Board SHALL HAVE THE POWER to pay debt and to guarantee debt!! A BAIL OUT!! We don’t even do that in Illinois. But if you read this bill it may apply ti other states!!! There is no permission in the Constitution to pay a foreign countries debt with our money. There is no constitutional authority to pay the debts of Illinois.
Who is suggesting an infusion of cash? That’s what a bailout is, isn’t it? Debt restructuring is something states have done.
The “bankruptcy”, enforced by US bankruptcy court, will stop all creditor collection cold.
First, it is unlikely to be a traditional bankruptcy under the code. It would be Congress creating a mechanism that has the power to renegotiate debt.
Then a “plan of reorganization” will be quickly adopted where in exchange for USA infusion of $10- 20 billion NOW, the debts will be GUARANTEED by the USA assuring Wall Street.
That would require Congress to appropriate that infusion of $10-20B, and if Congress were to attempt that, then I agree we should try to stop them cold. That's the legislation that should be opposed, but that's not what is being described in your article. You apparently oppose any permission to restructure even if it does not include a dime of taxpayer money or loan guarantees. And that's just stupid.
I promise you that they are planning infusion!! There is no doubt! I appreciated your knowledge and caring about this important discussion. We must stop this. It is much bigger the PR — IT IS ABOUT ILLINOIS AND CALIFORNIA. I want not 1 dime to go to these profligates!!
I assure you they are infusing using “ bankruptcy reorganization” subterfuge. Please believe me!! also what do you think US taxpayer guaranty is? We pay later. Stop this!!
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