Friday, February 5, 2016

Puerto Rico Cries Wolf (Again) - WSJ | From Comments: USATHOUGHTS says: "What we consider corruption proves to be common practice in Spanish speaking Nations. Any Puerto Rico bailout can only result in the theft of American Tax Payer money." | Corrupt politicians in Puerto Rico and New York seemed joined at the hip in helping Puerto Rico to shed its obligations. | News Review: February - January 2016

Puerto Rico Cries Wolf (Again)

Published Thu, Feb 4, 2016  |  , Senior Correspondent
Puerto Rico Debt Crisis: More Trouble On the Way
The Governor of the Commonwealth of Puerto Rico, Alejandro Garcia Padilla, is crying wolf amid an ongoing – and deepening – debt crisis.
The island’s taxpayers are on the hook to pay back a whopping $49.2 billion in debt.
Actually, Puerto Rico has about $73 billion in debt – but a big slice of the debt pie belongs to its troubled utility company, as well as other government entities.
Thus, the island’s obligated bond payments continue to swell.
Puerto Rico's Debt Bills Are Coming Due: Island's Bond Payments Swell to a Combined $1.4 Billion on Dec. 1 and Jan. 1
Currently, around 36% of Puerto Rico’s revenue services its debt payments (versus 7% in the United States), but the island says it can’t afford to pay more than 15%.
In a meeting with lawmakers in Washington, Padilla said the island is in a “death spiral” and that “the U.S. faces a humanitarian crisis under its own flag if Congress does not act soon.”
Recently, Puerto Rico has been moving money from one pocket just to pay another, something Padilla blatantly admitted when he said that the government has “paid their creditors up to now with ‘fiscal gymnastics’ but we have no more tricks.”

From Comments: 
USATHOUGHTS says: "What we consider corruption proves to be common practice in Spanish speaking Nations. Any Puerto Rico bailout can only result in the theft of American Tax Payer money." 

Corrupt politicians in Puerto Rico and New York seemed joined at the hip in helping Puerto Rico to shed its obligations. 

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News Review: February - January 2016

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