$72 billion? Some folks became very wealthy.
—This is not politics, this is math,” Garcia is quoted as saying in the Times.—
Too bad we don’t have that attitude in DC.
$72 billion? How the hell did they run up that much debt? Neither Puerto Rico nor any of the 50 states or DC should have ANY of their debt paid for by the federal government (i.e., the other states). And the federal government should guarantee NO state’s debt.
The dominos are staring to fall quickly.
For your perusal...
“Puerto Rico’s bonds were popular with U.S. mutual funds because they were tax-free, but hedge funds and distressed-debt buyers have been stepping in to buy up the debt as the island’s economy worsened and its credit rating drop”
This means as their credit rating dropped, they had to pay a higher interest rate on their tax free bonds to attract investors. So, if they declare bankruptcy, they do not have to pay the bond holders. Now, let me ask you, based on what we have been reading about PR for the last few years, would you buy their bonds? Heck no. If some of these bonds were sold twenty years ago, maybe.
So their debt is 72 billion with an annual budget of only 10 billion?
Nice job!
If he goes by the constitution, then that means that the debt gets paid, and the welfare payments don't get paid.
This means the constitution is more likely to go.
There are people who spend the whole day thinking about money.
Some do it as a job.
Some do it as a lifestyle.
Puerto Rico has been running a state government Ponzi Scheme.
If you got in on their bonds early, you probably made some good money.
If you get in late, well, not so good.
Wait too you get a load of the bailout of California or Illinois.
Peter Schiff recently moved his financial company to PR if I’m not mistaken. Not sure if it was only in legal terms or actually physically moved there.
Taxes were the motivator.
Not criticizing; Mr. Schiff is no slouch in the investment world. His record and his bank account will attest to that.
Just wondering if this came as a surprise (doubtful) to him and if he’ll stay in PR.
The most amazing fact here is that anyone would loan PR $72bil.
Once Puerto Rico is bailed out by the federal treasury, Illinois, California, New Jersey, Maryland, Michigan, and Massachusetts are standing in line.
The public pension chickens are coming home to roost.
I thought everyone there was on welfare?
They get 1.5 billion a year in food stamps.
At the going rate that’s $750 million a year they could get trading them for cash...