Posted on 09/27/2019 11:52:58 AM PDT by yesthatjallen
After years of wrangling with its creditors, Puerto Rico disclosed a plan Friday for resolving the biggest governmental bankruptcy in United States history, by cutting $129 billion in debts to about $86 billion — a reduction of 33 percent.
SNIP
(Excerpt) Read more at nytimes.com ...
$54.5 billion, the largest debt obligation, goes to public pensions.
You can be sure those won't be cut.
Ping.
Trade them to Denmark for Greenland.
State and municipal bankruptcies (you can call them insolvencies) are coming. Just wait for the next recession and stock crash. No one has yet repealed the the business-cycle
Conservatives need to get ahead of this and start setting the ground rules now. leaving government employees and their cronies whole is merely going to bail-out and perpetuate the groups and political thinking that made them dysfunctional - and leftist.
So whose pensions get cut?
California cities are declaring bankruptcy to get out of these huge pensions.
They’d be better off to bankrupt the corruption and keep the debt rather than the other way around.
In 1984, Congress explicitly forbade Puerto Rico from declaring bankruptcy under Chapter 9, Title 11, United States Code.
Well, cutting debt is one thing, but balancing a REAL budget is another.
What have they done there?
Do people just not pay any attention to the money they put into bonds?
The government of Puerto Rico has been running a Ponzi Scheme for years.
Can investors in bonds really afford to lose all that money, or is it somehow being passed on to the American Taxpayers?
I’ve heard that California is looking at financial problems down the road.
I see a pattern, that places dominated by Democrats, are places which are in financial trouble.
Didn’t Cleveland go bankrupt, when Dennis Kucinich was mayor there?
If you are right and take $54.5 B from both amounts, then the $74.5 B in remaining obligations declines to $31.5 B, a reduction of almost 60%.
Good luck in trying to find someone to borrow from again.
Also, I bet the $54.5 B in stated pension obligations is understated.
Public pensions are an issue that needs attention.
Beat me to it.
They’re basically screwed; the population is leaving the island for the mainland in droves.
n 1917, the United States Congress authorized the government of Puerto Rico to issue triple tax-exempt municipal bonds. These bonds were highly attractive to U.S. investors and very low cost for Puerto Rican local government to issue, laying the groundwork for ballooning national debt, and a public infrastructure built on that de
what is triple tax exempt?
Straight up trade except we keep Vieques Island as a practice artillery range into perpetuity for a dollar a year rent.
Make sure to empty out Allentown & Reading PA first.
Laissez les bon temps roulet!!!
Triple tax exemption[edit]
Interest income paid to owners of bonds issued by the government of Puerto Rico and its subdivisions is exempt from federal, state, and local taxes (so called “triple tax exemption”).[d] Unlike most other US triple tax-exempt bonds, Puerto Rican bonds retain tax exemption regardless of where the bond holder resides in the United States,[c][d][e] a marketing and sales advantage consequent to the restriction typically imposed on municipal bonds with triple tax exemption in which exemptions are available to bond holders that reside within the state or municipal subdivision that issues the bonds. Triple tax-exempt bonds are considered subsidized because bond issuers can offer a lower interest rate to satisfy bond holders; as a result, Puerto Rico can issue more debt.
Triple-tax-free municipal bonds are typically considered a low-risk investment, as they are backed by the government that issues them.
Nearly 70% of U.S.-based municipal bond funds own Puerto Rican bonds or have some kind of exposure to Puerto Rico.
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