Puerto Rico Declares Bankruptcy...

gotta be honest, i thought they already did last year. Knew they defaulted on debt a while ago, shit's rough down there

i guess there goes any chance for potential statehood
 
A lot of US states have massive debt, so how this is handled could be an extremely important precedent. Most states have far too much debt in the form of pensions for government employees.
 
Puerto Rico has a lot of population for such a small island of course its not going to be sustainable
 
#1 zip code in the United States for # of people receiving disability payments, too. So that's nice.
 
i heard it costs a grand a month just for the water bill if you start your own business.

i dont get it they are surrounded by water, and if the government is broke they probably shouldnt be gouging tax sources dry
 
Good. We've been fucked left and right by everyone and everything including our own politicians.

We need to press "reset", but I have little hope that the corrupt POS (plural) that run the island will get it right this time, or that the US will give enough of a fuck to fix it.
 
Obviously it's the government that is to blame for the "PR collapse 2016" but the people of that country did something that really angered me.

Something like 95% that fled the country for the US just left their dogs there. Many of them locking the door behind that and trapping the dogs in the houses. So basically Puerto Rico is dead dog Island right now.
 
uncommon said:
i heard it costs a grand a month just for the water bill if you start your own business.

i dont get it they are surrounded by water, and if the government is broke they probably shouldnt be gouging tax sources dry
Click to expand...
probably no purification plants

i remember researching it last year for school, and Germany had like 9000k plants operational.

Conversely, cuba had 9. none of them operational hahah

granted they're communist, but i don't imagine it's much better in PR, especially w/ i think only 1 US military base there (FT Buchanan) so not a really strong presence
 
Puerto Rico's department of treasury is so shitty to deal with some companies refuse to do business there even if it's profitable.

This has lead to industries leaving the educated population following them
 
evansusmc2 said:
Obviously it's the government that is to blame for the "PR collapse 2016" but the people of that country did something that really angered me.

Something like 95% that fled the country for the US just left their dogs there. Many of them locking the door behind that and trapping the dogs in the houses. So basically Puerto Rico is dead dog Island right now.
Click to expand...
That's fucked up.
 
I'm gonna move to Puerto Rico, enjoy the sun and live like a king. Have a nice stable of Puerto Rican girls at my beckon call.

Bwahhahahah
 
uncommon said:
i heard it costs a grand a month just for the water bill if you start your own business.

i dont get it they are surrounded by water, and if the government is broke they probably shouldnt be gouging tax sources dry
Click to expand...

Small island surrounded by salt water. I agree that taxing the shit out of businesses is a great way to collapse an economy though.

wlu.29 said:
Thanks trump
Click to expand...

Sure. Because we all know Puerto Rico's problems began in the past 100 days. :rolleyes:
 
Which US State is in danger of being bankrupt like Puerto Rico? Time to scoop up some real estate when the time comes.
 
These bankruptcies always start on the periphery and work their way inward. For this next correction, instead of banks going into default, we're going to see government's going into default.

Es normal, for 10 years of near ZIRP...
 
Puerto Rico Makes Unprecedented Move To Restructure Billions In Debt
COLIN DWYER | May 3, 2017

04db-rico-articleLarge.jpg


Puerto Rico has asked for a form of bankruptcy protection to help it grapple with more than $70 billion in public-sector debt. The unprecedented maneuver, requested by the governor and filed shortly afterward by a federal oversight board, sets in motion what would likely be the largest municipal debt restructuring in U.S. history.

By comparison, Detroit's 2013 bankruptcy, which sought relief from some $18.5 billion in debt and liabilities, made it the largest such filing in the country's history at the time.

"After extensive discussions in good faith and the opening of the financial books of the Government of Puerto Rico to the creditors, there has not been sufficient progress in the negotiations," the U.S. territory's governor, Ricardo Rossello, said in a statement.




The situation now heads to federal court, where the struggle between Puerto Rico and its disgruntled creditors will be decided. The territory also has more than $49 billion in pension liabilities.

But don't call it a "bankruptcy," exactly, since the territory isn't technically eligible for the same Chapter 9 protection as states. Rather, Congress passed a law last year specifically to deal with Puerto Rico's debt problem, which has been simmering for years. Among other things, the law, called PROMESA, set up a federal oversight board to handle the territory's debt negotiations and imposed a stay on financial obligations it owed.

It set up a bankruptcy-like process tailor-made for Puerto Rico. NPR's Camila Domonoske recently broke down the procedure:

"PROMESA doesn't call this 'bankruptcy,' and it's not identical to Chapter 9. But the underlying principles are the same.

" 'It mirrors conventional bankruptcy processes that are ordered and arbitrated through a court system,' says Eric LeCompte, the executive director of Jubilee USA Networks, a religious development organization that supports debt relief and debt forgiveness.

"The 'Title III' process, as it's called in PROMESA, allows Puerto Rico to address all of its debts at once, in a comprehensive process — which even Chapter 9 doesn't allow, LeCompte says. It's essentially a bankruptcy process custom-built for Puerto Rico's debt crisis."

The island has been grappling with runaway debts for years, though the situation finally reached a crisis in 2015, when the island's governor at the time announced that its debts were unpayable as long as it hoped to provide basic services to residents.

Camila notes that since then, Puerto Rico has been buffeted by "defaults on loan payments, budget cuts and tax hikes" — including significant austerity measures for Puerto Ricans.

And those economic woes have taken their toll. In a court filing Wednesday, the federal oversight board laid out some grim numbers:

  • Puerto Rico's labor participation rate is only about two-thirds that of the U.S. mainland.
  • The territory's population has dropped by 10 percent since 2007.
  • Nearly half of Puerto Rico's residents live below the federal poverty level.
The stay imposed by PROMESA expired overnight Monday, and The New York Times reports that right on cue, "bondholder groups and at least one bond insurer sued" on Tuesday.

As The Wall Street Journal reports, Puerto Rico will now "face off against angry hedge funds, mutual funds and bond insurers in the court-supervised proceeding known as Title III, a legal mechanism created by Congress to restructure debts by force if negotiations broke down."

In its filing, Puerto Rico's federal oversight board expressed optimism about the legal wrangling to come.

In other words, the board remains "hopeful that continued negotiations (including through mediation) will lead to consensual resolutions such that Puerto Rico will once again be able to experience economic and social prosperity after this difficult process is resolved."

http://www.npr.org/sections/thetwo-...-move-to-restructure-tens-of-billions-in-debt
 
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