Topic: Puerto Rico Bankruptcy (Read 1490 times)

Bankruptcy won't be an easy process. A judge still has to approve it. Many prominent Wall Street firms own Puerto Rico's bonds. They are angry about the bankruptcy filing because they fear now they won't get paid back all the money they are owed. The island's financial crisis is so bad that Congress installed a Fiscal Oversight Board to call the shots last year. The board stopped trying to negotiate with creditors this week and filed for bankruptcy.

the Puerto Rican senate held a series of hearings on prepa' s  fuel-purchasing irregularities,prepa got into severe financial trouble before the rest of
the puerto rican government, and it was unable to pay fuel in 2014. without the sort of leverage that can be exerted in bankruptcy.

Politicians aka legalized criminals ignore facts until the get utterly fucking shit stomped by them.

See rome and every other civilzation, we will not be different.

Futhermore the average person would stop wipping their ass if Obama told them to.  Everyone just believes whatever their leaders say...  the can can be kicked for a long time.. the parade marched right at a cliff.. eventually that cliff comes and the parade just walks right off of it.

Everything will keep going EXACTLY the way it is until one day.. boom.

Sounds like a very fucked up situation. The problem is so less people think that Puerto Rico can be a capable country some day, because I believe it can. I was a little skeptical about their progress growth but I was in the country recently, and I found the lifestyle peaceful. They are just a little lazy, they need to overcome their flaws to overcome their troubles. Work harder, work better and get rid of that debt

Puerto Rico ,is under the debt and the tax revenue is paying off the debt . Not performing its current function lately,the money of people who are giving tax is  going to a dead end. People live at 7.25$ minimum wage , and now the debt. I hope things go all right with Rico.

it is not only Greece and Puerto Rico. You can also open a thread for a upcoming insolvency of Venezuela and Ukraine or the likely stock exchange crash in China, which alltogether could cause a perfect storm for the global economy.

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There are many differences between the situations in Greece and Puerto Rico, but many similarities:

Both are severely indebted.

Both will need substantial restructuring, both of their debts (means creditors getting less) and their .gov spending.

Both will have many difficult days ahead...


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Those of us who are not in Greece or Puerto Rico can start learning lessons.  Saving money, outside of the banks, is just safe!  Save some in CA$H (outside of the banks), some in BTC and some in gold.  

In addition, it is important to read the news and stay on top of financial developments.  And be prepared to act.  It can happen here, nothing is impossible.

True, but also true that countries like PR get a sort of "south american" treatment. It's like the countries in south europe, they get disrespected by the elites and then we have a Greece incident popping.

I think that could be prevented with important decisions to be made, strict steps to be taken and shitty situations could be avoided... That's how you close that motherfucking loophole, put a band aid over the damage and let it heal. Once the bruises are healed, you flex up with hard work and start working out the economy again like it should. Like a boss

So you seriously think that 'high' minimum wage is the root of this crisis? I would think it is the other way around. High minimum wages help the economy, not creates debt, people have more money to spend for more goods, not just basic products and foods. It is the motor of the economy growth when you can buy luxury goods. People are spending more money to boost local economy. This type of multi billion debt is not caused by wages.

This is a really interesting point. I wonder if these government bankruptcies may open the door for legalization of more previously illegal activities to allow for more tax revenue to come in to cover debts.

One this if for sure...Governments need stop spending.

Nice article. Although Peurto Ricans are stuck in a downward spiral. No matter what they do something falls apart. The more they try to return debts the more economy suffers and the more they try to redeem the economy the more the magnitude of debts increase. Basically they are in a bad loophole.

Puerto Rico is not in South America. It is located 1,660 km from Miami. It is part of the United States (a territory to be specific). People born in Puerto Rico are U.S. citizens.

Unfortunately my friend, when you have money to invest, you stay away from places like Greece, Puerto Rico or Argentina. I'm saying it bluntly, but if you want to save money for retirement, as most investors want, it's much better to invest in London or Switzerland.

The situation in Puerto Rico is way worse than Greece actually, but since Puerto Rico is some place in south america no one seems to care. Greece is in a very bad situation don't get me wrong, but they getting all the press because they are Europeans.

It is really sad to hear what is happening to few countries in the world, one by one falling down to crisis, still Greece crisis have not been resolved and yet another crisis on the way for Puerto Rico. Any chance that Bitcoin option will change their financial strategy ?

True, which is why the US also saw something back in 2008.

And then the whole international banks took into effect after that incident, its something really we cant stop. Its our very nature.

They need some sort of bail out form and if bitcoin was looked as a universal debt coin this would be actually okay.

So the meaning of value automatically changes, and 1 btc stood for is 1,000 in that foreign currencys value in that currences debt or something.

The tax revenue is going to pay off old debts, it is not going to provide current services. Thus the more of your budget that you dedicate to debt repayment, the worse the value proposition that you are delivering to your territory's residents and businesses. The harder Puerto Rico squeezes, in  the more its economy suffers. But the more the Puerto Rican economy suffers, the harder it is for Puerto Rico to pay back its debts. In other words: death spiral.

This is more about Greece. But I think it applies to Puerto Rico as well because the same greedy, corrupt and powerful intl banks are involved....

I am a puertorican and this look ugly. I hope that with the new law to use medical cannabis for patience could help us a lot with employement and change the way of thinking.
I know Puerto Rico will get up of this one and come more powerfull then ever, if there comes some USA investor they can create a lot of opportunities for puertoricans with a 14% of unemployment maybe some investor can bring work to here and make everybody have jobs and be happy with their lives.
Puertorrican are trying to live a rich lifestyle with a $7.25  minimun wage. Its insane to live by that minimun wage with a 11.5% on ivu



Conclusion Puerto Rico its fucked up but will get up from this in less than 10 years

Since there are a lot of topics on Greek Bankruptcy, it does seem fair to at least have one for Puerto Rico as it is passing under the radar, even the USA has been mentioning how Greece won't really impact them but have failed to mention Puerto Rico.

Puerto Rico’s Governor Says Island’s Debts Are ‘Not Payable’
http://www.usnews.com/news/business/articles/2015/06/30/puerto-rico-wants-bondholders-to-postpone-debt-payments
http://www.nytimes.com/2015/06/29/business/dealbook/puerto-ricos-governor-says-islands-debts-are-not-payable.html

Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment.

“The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.”

A broad restructuring by Puerto Rico sets the stage for an unprecedented test of the United States municipal bond market, which cities and states rely on to pay for their most basic needs, like road construction and public hospitals.

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If Puerto Rico were considered a developing country, it would be the eighth most heavily indebted country in the world.