Puerto Rico in trouble of default

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benjamen

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http://www.zerohedge.com/news/2014-01-15/puerto-rico-default-likely-ft-reports

the FT reported moments ago that a Puerto Rico default "appears increasingly likely"

"Puerto Rico cannot really raise taxes much more, since the debt per capita is more than $14,000, while income per capita is almost $17,000, a ratio – at 83 per cent – that makes California, Illinois or New York – each at 6 per cent – models of prudence. Meanwhile, at 14 per cent, the unemployment rate is twice the national average."

:popcorn:
 
Puerto Rico is a different world. Was taken there for two years after my mom shot herself, (I was six); have fond memories of fighting for my lunch money each day. I think the tropical atmosphere is why I like the Philippines so much.
 
Since we were asked [translation: Told to leave] the island of Vieques by Puerto Rico, we also decided to leave Roosevelt Roads because Vieques was the only real reason to have a base there in the first place. Doing so wiped away a huge percentage of Puerto Ricos income.

I have been all over that rock and will never go back. There are several very nice highlights, as can nearly always be expected in the Caribbean, but in general the place is a hellhole of violence and general hatred of Americans. We were constantly warned not to travel outside of the tourist areas and never go anywhere alone.

For a country that is ENTIRELY beholden to the USA for their very existence, PR has become pretty damn big for their britches so to speak. I say give them independence and let's just watch what happens. The population will immediately outstrip the islands carrying capacity and devolve in to a Hati-like vassal state with the first benefactor to stumble along.
 
It will be interesting to see how a bankruptcy there might affect the banking system.
 
PMBug said:
It will be interesting to see how a bankruptcy there might affect the banking system.
Click to expand...

you can be sure there will not be a 'default event' declared in any deritave product that goes bad

and that no one will loose out because the first $x of everyones bank account are guaranteed ......

I reckon that if a problem is forseeable 'they' will deal with it.

We are waiting for that unforseeable event :popcorn:
 
I wouldn't bet any money on that Rblong. Puerto Rico is the red headed step-child of the United States, but it is also a huge expense for us. PR gets more in the form of subsidies for businesses, welfare and food stamps for the people than anywhere else. With these, and a long list of other dollar pits to fill, it wouldn't surprise me one bit if Obama decided to let them figure this one out for themselves. Have you seen any appointments made by Obama that were Puerto Rican? Didn't think so.
 
Agree Ancona.

If hopey changey could cut em loose without it causing the fiat system any major repercussions, he would do it even though there might be ethnically similar folk to him that get hurt.

Its not a big deal to print a few more bennies if its necessary to keep the show on the road so I contend that any forseeable event that has the potential to destabilise will be 'fixed'
 
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