JUNE 24, 2017
PUERTO RICO GOING BANKRUPT:
It’s been on the verge for a year.
Investors Business Daily says Puerto Rico “essentially declared bankruptcy” earlier this month.
Has Puerto Rico gone “Full Illinois” before Illinois goes Full Illinois? Not according to the article.
It’s been on the verge for a year.
Investors Business Daily says Puerto Rico “essentially declared bankruptcy” earlier this month.
Puerto Rico is currently $73 billion in debt, which is close to 100% of the island’s annual output. It owes a sizeable portion of this to the island’s current and future pensioners: Puerto Rico’s pension fund is woefully underfunded. It also owes billions to general obligation bondholders — whose investments are guaranteed by the island’s constitution — and to COFINA (also known as Puerto Rico Sales Tax Financing Corp.) bondholders, who hold debt explicitly backed by sales-tax revenues.
Illinois also has taken a page out of the Puerto Rico playbook by beginning to demonize its bondholders as greedy investment bankers profiting off the misery of others..."Read on!!
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