Sunday, July 6, 2014

Thousands of people take part in the march in Madrid (PHOTOS)

Thousands of people take part in the march in Madrid (PHOTOS)

1 Share
Tens of Thousands of people-more than one million According To the organizers and TVE-have Emerged Saturday from the center of Madrid in the Pride march to denounce the injustice Suffered lesbian, gay, bisexual and transgender in eighty countries country, Where They are Persecuted by the Authorities, and even Sentenced to death in some of them.
"We march for Those who can not" read the slogan of the parade, in defense of all people who suffer persecution in over 80 countries country Because of Their sexual orientation. In too many places human rights are an illusion or a statement on wet paper, According To read the manifesto at the end.
The event provided bullfighters an environment of great celebration, with lots of people dressed as, and even gladiator Conchita Wurst, one of the heralds That the Holidays 2014 Pride started last Wednesday.
Were Among Those attending many families who eat With Their young children to enjoy the party, like foreigners coming worldwide locations and Spanish in all regions of the country.
WHY YOU CAN NOT
The presidents of the State Federation and the Collective of Lesbians, Gays, Transsexuals and Bisexuals have Reminded Citizens around the world who can not go out in defense of sexual freedom.
In the pre-departure parade celebrations centering MADO 2014, a large demonstration in Which organizers expect 1.2 million attendees moments Boti G. Rodrigo (FELGTB) and Hope Montero (Cogam) have rights and freedoms of Claimed all Citizens, Especially Those living in country clubs That punish the LGBT community.
Rodrigo Recalled That in ten countries country around the world being gay is punishable by death and stressed That citizenship "whole" of Madrid, and not only Their collective invades the streets for Those who can not defend Their rights.
For his part, Montero stressed in many country clubs That LGBT people suffer imprisonment and remarked That Often called Gay Pride is a protest "demonstration."
At the head of the demonstration, along With Other leaders of his party, the PSOE's Secretary for Equality, Puri Causapié, has Indicated That his party would join the rally to support the claim of LGBT groups and to support Persecuted and killed worldwide Because of Their sexual diversity.
Causapié Also Been Reported That in Spain there is homophobia and discrimination Accused Situations and has the makers of the PP "difficulties" have to celebrate This Year.
  • AFP
  • AFP
  • AFP
  • EFE
  • EFE
  • EFE
  • EFE
  • AFP
  • EFE
  • EFE
  • EFE
  • EFE
  • EFE
  • EFE
  • AFP
  • AFP
  • EFE
  • EFE
  • EFE
  • AFP
YOU BE INTERESTED ...
Gtres
  • Megan Fox
    In an Interview with Esquire in 2011, Megan Fox confirmed her bisexuality and said. "Believe that people born bisexual and then make subconscious choices based on the Pressures of society I've never dated a bisexual girl Because That Means They Also sleep with men, and men are so dirty That I never wanted to go to bed with a girl who has slept with a man. "
  • Drew Barrymore
    Drew Barrymore said in a magazine interview in 2009 Contact: .... "Yes I like women sexually Yes, indeed I have always Considered Totally bisexual I love the body of a woman being with a woman is like exploring your own body through another person . "
  • David Bowie
    Although David Bowie has-been shown always reluctant to speak out acerca Their sexuality, said in an Interview with Playboy in 1976 and collected later by Vice: "It's true, I'm bisexual, but I can not deny That I have used my sexuality very is well. best thing That ever happened to me "
  • Angelina Jolie
    Angelina Jolie has Always Been open to Talk About Their sexuality and has-been Recognized with Women multitude numerous relationships, including the actress and model Jenny Shimizu. "I have loved some ladies and I've slept with women If you like them and want to give them pleasure, being a woman Gives you advantage. perfectly Know how to play, "I Told the magazine OK Magazine.
  • Lady Gaga
    Lady Gaga has Always Been acerca open to talk her bisexuality since I Acknowledged in an Interview with Barbara Walters in 2010.
  • Fergie
    The member of The Black Eyed Peas confirmed his bisexuality in an interview with The Advocate in 2009. "It's not a fad, if you ask me in five years you will get the same answer," I said.
  • Cynthia Nixon
    Although I have is currently married to Christine Marinoni, Nixon confirmed in an interview with The Daily Beast That "playing on Both Teams." The star of the series Sex in New York Stated, "I do not use the bisexual word Because nobody likes the bisexuals Everyone throws things at bi ... we do not respect. ".
  • Amy Winehouse
    DESPITE her marriage to Blake Fielder-Civil, the late Amy Winehouse assured his friends That I was bisexual. "There is something very satisfying in being with a woman. I do not care what people think of me," I've Told them.
  • Although married his wife in 1990, member of Green Day said in an interview with The Advocate in 1995. "I think I've always been bisexual, you has-been Something That has always interested me think That people born bisexual, and it is society and That our parents tell us something is wrong, but it's a very nice thing. "
  • .'ve Always Been Heard Amber defined as bisexual Said Told reporters recently: "I do not want me to look at her as if she Were hiding something."
  • Married to the hero of the series True Blood Stephen Moyer, Anna Paquin Told Zooey Magazine in 2009: "Bisexuality is not a problem That is nature and it is not a decision, it is something you feel.".
  • In an interview in August 2013 at The Huffington Post, Said That "technically" was not able To Have sex with one person Because he is bisexual.
  • The music mogul Clive Davis, married twice, in 2013 ADMITTED his bisexuality in his autobiography The Soundtrack Of My Life. acerca Davis spoke've had two relationships with two men after divorce from his second wife.
  • In 2009, I Acknowledged in an Interview with Queerty everyone is bisexual nature. "It's something innate homophobes but can not see it if you ask someone walking down the street if you are bisexual say. What the hell are you saying?".
  • This young rapper has Declared since the start of his career bisexual.
  • Many people Mistakenly Believe That the comic and producer Andy Dick is gay. However, I have said in an interview with The Washington Post That is bisexual.
  • The former guitarist and vocalist for Sleater-Kinney said in an interview Wweek: "It's strange Because nobody ever asked me before People always assume you are This Or That Ok, I'm bisexual ..."
  • "I consider myself bi. 'Ve Done things with girls before. But I would never be with a girl because i like penis ... but it is True that I have experienced," I said in an interview with The Huffington Post in February Jersey Shore 2012 contestant.
  • The young actress Evan Rachel Wood ADMITTED his bisexuality in Twitter.
  • The author of Push, the book that inspired the movie Precious, is defined as Openly bisexual.
  • Following
Megan Fox
In an Interview with Esquire in 2011, Megan Fox confirmed her bisexuality and said. "Believe That people born bisexual and then make subconscious choices based on the Pressures of society I've never dated a bisexual girl Because That Means They Also sleep with men, and men are so dirty That I never wanted to go to bed with a girl who has slept with a man. "

Getty
  • Smacker in Spain before the Pope
    A gay couple kiss Benedict to step into the "popemobile" way to Cibeles in Madrid. It was August 18, 2011.
  • Gay march in Greece
    A couple kissing on February 14, 2011 at a protest in Athens against the government's decision not to legislate gay unions. , In the shopping area of the Greek capital city before photographed Were the church of Ermou.
  • Controversial gay kiss in the series 'Modern Family'
    Fans of the series Cam and Mitchell Protested That They loved but never kissed on camera. So They launched into campaign on Facebook to ask. They did.
  • The tradition of the Marines in the version of these two girls
    In 2011, the U.S. official put the ban on gays serving in the military order. These two girls Were the first to capture a "first kiss" on the port after being separated for 80 days for one mission.
  • The anti gay kiss Genoa after Al-Jazeera reporter
    Mariano Rajoy victory celebration in Genoa and videobombing this reporter by two guys.
  • The reunion kiss in 'Brokeback Mountain'
    Ennis Del Mar (Heath Ledger) and Jack Twist (Jake Gyllenhaal) film in the Oscar-winning. And the look of Michelle Williams in the role metidísima.
  • Heinz advert
    Two parents kissing That did not last long. Heinz stopped using the ad after Receiving 200 complaints from concerned parents Because "they had to explain to children the relationships Between Their people of the same sex" after seeing the ad.
  • Claiming the right to gay marriage in China
    In March 2011, gay couples kissed wedding dresses to claim the right to gay marriage in China. They did so in Wuhan, in Hubei Province.
  • In front of the Eiffel Tower in Paris on a "kiss operation against homophobia."
  • In 1999, on TV, in the erotic dream kiss Ally (Calista Flockheart) and Ling (Lucy Liu). You can see in this video from Youtube. The kiss was nothing else.
  • In 1994. He was seen by 30 million viewers.
  • It was in 2000, in the series 'Dawson's Creek', between Jack and Ethan.
  • The first gay kiss on American daytime TV was on the characters of Luke and Noah in veteranísima series "As The World Turns" in 2007 on CBS.
  • This kiss took criticism from U.S. conservatives.
  • In the Jewish holiday of Purim.
  • Breana Hansen and Monica Chacon kissing on February 7, 2012 at the gates of the City of San Francisco to celebrate the cancellation of the ban on gay marriage in California.
  • Quedada gay kisses to ask the International Day Against Homophobia, in San Francisco.
  • In the gay pride parade in Warsaw (Poland) in 2010.
  • 2011 violence against homosexuals Flashmob in Brussels.
  • It was in 1999. They won the MTV Best Kiss Award the Following year.
  • Darlene Garner and Candy Holmes (right), Both in front of churches in the Metropolitan Community Churches, kissing on the first day of gay marriage in March 2010.
  • Tim Tebow filmed a commercial for the Superbowl 2010 for anti-gay and anti-abortion organization FOTF. But It Seems to have problem in sharing joy with your kisses teammate Demaryius Thomas Denver Broncos.
  • I kissed another member of his group at the American Music Awards 2009. Then his performance in 'Good Morning America', scheduled for the Following week was Canceled and it was controversial.
  • The character of Chuck Bass always does everything with a hidden intent. This also.
  • Following
Smacker in Spain before the Pope
A gay couple kiss Benedict to step into the "popemobile" way to Cibeles in Madrid. It was August 18, 2011.


GETTY
Greg Louganis / Jumping Trampoline
Read the whole story
· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

A well-orchestrated resignation - The New Day

1 Share
July 5, 2014
First Hand - Irene Fernández Garzón
Going, going and gone. 's exsenador Eder Ortiz discreetly stepped down as commissioner election of the Popular Democratic Party, but before I tied several pending appointments and personnel changes in the State Election Commission, where it rains and it pours. The resignation letter of , effective June 30, was submitted by Alejandro García Padilla Ortiz Governor as chairman of the PDP, who is this name a replacement With the advice and consent of the Board of Governors of his party. Reasons for Departure Ortiz Have Not Been put in black and white, but the popular election commissioner had Become a headache for President of the EC, Roman Gonzalez, who said I had not received a copy of the resignation letter. Along With Their Counterparts Jorge Dávila, New Progressive Party and Juan Manuel Dalmau, Puerto Rican Independence Party, Ortiz Had been trying to undermine the authority of Román González, who was appointed last September by García Padilla without the backing of popular commissioned so far. Ortiz, who is a lawyer and has contracts for professional services, including participation in a prominent law firm was apparently losing Influence with Garcia Padilla, who was a close collaborator of the past four years When Both were minority senators. In fact, eleven García Padilla won the governorship, Ortiz was Mentioned as a candidate for secretary of state, que Eventually went to David Bernier. Caliente still chair Ortiz, Have Already left possible successors, With Fortress Public Affairs Director, Jorge Colberg Toro, as The most mentioned. Secretary General of PPD under the chairmanship of Gov. Sila M. Calderon, Colberg Toro then went to the Fortress as Secretary for Public Affairs, a position I left in February 2003 to sworn in as representative for accumulation. many are now wondering What is Whether Colberg Toro, or whoever replaces Ortiz, respect the That agreements lend this Late with the other two election commissioners. changes and appointments, With Their aforementioned wage Increases Were cooked by the commissioners at a meeting on June 27, just three days before it was Effectively the resignation of Ortiz, as evidenced by a certificate from the secretary of the EEC Walter Velez. Commissioners Also Referred to the Director of Human Resources, Enid E. Román Rodríguez, and the deputy director of That office, Portalatín Carlos Esteves, a certification of the decisions taken one at that meeting, including the Formalities 10 appointments Effective July 1, Corresponding PPD OFFICIALS three four four the PNP and PIP. Folk are the deputy director of Electoral Studies, the head of General Services and Planning Coordinator. The penepés are appointed to an administrative assistant for the Center for Electoral Studies, Deputy Director of General Services, a lawyer for the Office of Legal Affairs and Planning Coordinator. pipiolos And are planning coordinator, a coordinator of the Office of Information Systems and Electoral Processing (OSIPE) Step Link coordinator, and an attorney from the Office of Legal Affairs. Interestingly, while the president of the EEC do not Renewed the contracts of 100 temporary employees, the commissioners Agreed to reclassify as "regular trusted" employees four transient political balance in the Security Office, que are Identified by name in the document. Commissioners Also Instructed the Human Resources Office to review the pay scales and award wages for six staff: Director of Electoral Studies, deputy director of the Office of Planning, the director and deputy director of Education and Training; , and the director and deputy director of. the Center for Electoral Studies By unanimous agreement, signed a letter Also Informing the appointment of Jennifer Burgos as Chief of General Services; René Hernandez Arocho as deputy director of the Center for Electoral Studies, and Elan Echevarría as coordinator of geo-electoral affairs. As If That was not enough, Ortiz Davila and Dalmau I wrote a warm letter to Justice Secretary Cesar Miranda, but for the sign Román González, who refused. Reacting The letter was sent to him to One That Miranda Román González blaming the EEC by the Inability to process 18 fraud cases Involving primarista Guaynabo 2012. 'll have to see If This perfect storm leaves more victims. (irene.garzon @ gfrmedia. com
















Read the whole story
 
· · ·

Focus on the fight against child exploitation

1 Share
July 6, 2014
The most disturbing finding acerca child exploitation in Puerto Rico, discussed This at the Annual Conference of the American Bar Association recently held in San Juan, is how little progress has-been made in the effort to address the root form of slavery This New.

One of the Most Shocking findings was presented by the U.S. Attorney Marshall Morgan, manager of the Special Unit for Crimes Against Children and Human-Trafficking children and adults, even though Is that the federal Attorney arrested for one or two people for child pornography illegal transportation ministering purposes of minors for sexual or human trafficking, That amount is tiny in relation to the 50 referrals Receives That the group each month. Revelation Becomes more serious character That When It notes the prosecutor in February federal head of San Juan, Rosa Emilia Rodriguez said that last year his office had issued 51 indictments against an equal number of people and That 100 percent of the Were Convicted defendants. Though Rigorous Recognize That effort, Arises the question how many other authors of this despicable crime walk will loose and hunting more innocent victims . The Widespread use of Internet and social media by children without supervision of a parent or guardian has provided This powerful medium is being used to meet the demand of child pornography and even human trafficking.  That's one of the issues or dificultades Undoubtedly retarded the task you are charged with four federal prosecutors and agents with eleven counts Specialized unit to combat These crimes. A That figure must be added the creepy revelation made ​​some months ago by the departments of Justice and Family before the Commission on Civil Rights and Citizenship of the Senate, in the sense That none of these agencies had registered a single case of human trafficking, DESPITE being criminalized in the Penal Code of Puerto Rico as a separate offense and strong penalties for Those Who Engage In this wild crime. Meanwhile, According to data provided at the conference by Marshall lawyer tax, the fact That Puerto Rico is a territory of the United States jurisdiction to prosecute the transportation of minors for the commission of a sexual offense is wider on the island to include Such Mobilization Occurs from one village to another , que has led since 2012, when yo I took the federal first case of its kind in 70 years, the number of Such crimes have Soared uncontrollably. During the conference, the president of the House of Representatives, Jaime Perello, meanwhile listed some of the recent legislation, and signed by the governor, to protect and help children to more Effectively who are victims of sex crimes.  específicamente Referred to the Law 246 of 2011 expanded the definition That of sexual abuse and its many variants and 158 in 2013 for the operation centers of integrated services for victims of sexual abuse. Again, this is important legislation but by its very nature, is Aimed at Addressing the Consequences of crime. However, it Should be Strengthened to the maximum possible strategies to Prevent this nefarious practice so mercilessly That Continually hurts our society.







Standards Publication
To comment you must register with your actual name and specify a contact e-mail. Any insult or offense, of any kind Threats or insinuations towards or against any person is prohibited. No libelous, defamatory, illegal, obscene or offensive, disrespectful and using Messages that distasteful nicknames or violate the privacy rights of third parties is permitted. El Nuevo Dia reserves the right to decide to Which These messages violate rules, the Rules for comment or Terms and Conditions of Use of the New Day, to remove without notice to expel to User, at its sole discretion, Violates the same. Solely responsible for You are That the content you contribute.
Read the whole story
 
· · ·

The budget and the golden calf: CNE - Center for a New Economy

1 Share
budget_cuts
By Sergio M. Marxuach
Director-Public Policy
Center for a New Economy
The Center for a New Economy is eight years analyzing the annual budget of the government of Puerto Rico. Definitely recommended for the Fiscal year 2015 budget is more complicated than we Examined. The metaphor used to describe this budget would be a Byzantine web woven by some great character devised by Borges or Cortazar, Which connect through multiple new taxes, savings and ethereal Measures dubious of government "efficiency".
The side of the steps includes a swarm of new tax Measures, many of Which are non-recurring, That Were designed at the last minute with little analysis and study less, to "fit" the budget. To be fair, the government has Announced a comprehensive tax reform later This Year. Will Have to wait until then to further analyze the tax system of the country.
On the side of the "adjustments" included Measures is difficult to categorize as "cuts and savings." For example, $ 267 million will be "provided by entities outside the General fund," Un certain public corporations actually, to cover Expenditures of the Central government. That's not saving, That is a disguised financing.
The spectacle of so many government OFFICIALS running from one place to another, improvising to Achieve That elusive "Straighten" budget, makes us think info we have lost sight of some basic principles. The budget allocates financial resources to Contribute towards Achieving a Un certain conception of the common good. Who, in the midst of this chaos, are thinking of Achieving this common good?
Below we summarize some of the Most Important findings of our report on the Recommended Budget for FY2015:
  • Given the deficiency of $ 320 million in Revenues to the Treasury on May 31, it is likely That the General fund deficit for Fiscal year 2014 excede the government projection of $ 650 million. In fact, the Ministry of Finance has Announced That to close the 2014 will use $ 35 million of surplus emission COFINA 2009 and special assignments That Have Not Been Paid will be rescheduled,: such as $ 250 million to repay lines of credit with GDB and $ 90 million of the additional contribution to the Retirement System.
  • The General fund budget for Fiscal year 2015 will not be structurally balanced, and That the government will use $ 269.8 million of money to pay the debt service on the general obligation bonds issued on March 11, 2014.
  • In Addition, the $ 1,357 million of cuts and "other adjustments" that Have Been Proposed are the product partly of accounting tricks. , Moreover, the Office of Management and Budget Estimates That At least $ 309 million of Those cuts are subject to a high risk of estimation and implementation.
  • Malthus, we estimate the structural deficit of the Commonwealth of Puerto Rico for FY 2015 will be at Least $ 578 million, equivalent to the difference Between the revised Estimated Revenues of $ 9,565 million less expenses of $ 10,143 million ($ 9,565 million basic expenses + $ 309 million unrealized savings + $ 269.8 million of capitalized interest).
  • The consolidated budget includes $ 4,552 million, or 16.2% of the total, to service the debt. To put this figure in context, sizable That the consolidated budget includes $ 1,190 million for investment in permanent best, equivalent to a mere 4.2% of it .
  • , Moreover, as shown in the chart Accompanying This Review, Total expenditure on debt service excede the budget of agencies and programs as important as the Department of Education, My Health, University of Puerto Rico and the Puerto Rico Police.
  • The debt of the Commonwealth of Puerto Rico is unsustainable. This is mainly due to Puerto Rico's debt has grown at a compound annual rate of 8.2% since 2000, while the GDP (at current prices) only Domestic Product has grown at an annual rate of 4.1% During the same period.
  • To reverse this trend will require (1) operate with a primary surplus for several years and (2) That the rate of GDP growth consistently excede the interest rate on debt. Both events are unlikely in the near future.
The budget discussion has-been complicated than usual With the approval of the "Law Enforcement With the Debt Restructuring and the Public Corporation of Puerto Rico", que has unleashed a maelstrom in our public debate. On one side Are those who support the move as unavoidable in the best case, or as a necessary evil at worst. On the other side are two groups. Argues That One who must be paid the debt Regardless of the Consequences; Bondholders come first though surgery at the Medical Center Have to be done without anesthesia . While the other group Argues That Should the debt be repudiated or at Least That Puerto Rico must declare a unilateral moratorium on the payment of the same. Neither Of Those options is socially desirable.
The law for the reorganization of public corporations is not perfect but Provides an orderly, logical process, and well structured to reduce the burden of debt service. We can not continue sacrificing our public services to meet the golden calf of the Bondholders. In the words of Pope Francisco. "We created new idols The Adoration of the Golden Calf old (cf. Ex 32.1 to 35) has found a new and ruthless in the fetishism of money and the dictatorship of the economy without a face and without a truly human target version. "Is that society we want to live, where the Medical Center has to resort to radiomaratones to raise the funds for its operation Necessary?
Graphic budget
The author is Director of Public Policy at the Center for a New Economy. This column was originally published in El Nuevo Dia on July 6, 2014. 
Read the whole story
 
· · · · ·

AGP will not go to opening commercial offices in Colombia

1 Share
Governor Alejandro García Padilla no longer participate in a reception this Monday, July 7, in Colombia, on the occasion of the inauguration of the Office of the Commonwealth of Puerto Rico in the South American republic.
The invitation to the reception, which arises from economic development secretary Alberto Bacus Bagué indicates that "will accompany the president of Puerto Rico, Honorable Alejandro García Padilla and senior government officials of the island."
The governor's press secretary, Manuel Jesus Ortiz confirmed that the governor did not attend the activity will be at 6:00 pm at the JW Marriott in Bogota, located on Calle 73, Issue 8-60 . The banquet will be at the Royal Salon I, II. Invite requests a dress suit and tie.
The Secretary of State, David Bernier, replace the governor in the gala, as confirmed both Isadora Ortiz Hernandez, Press Secretary Bernier.
Puerto Rico has sales offices in New York, Madrid, Panama and the Dominican Republic. Last April Bacus Bagué announced the upcoming opening of offices in Peru and Colombia, although no exact dates were given.
Puerto Rico has had throughout the years offices in Costa Rica, Mexico, Chile and Brazil, which eventually had to close.
The office of federal affairs Puerto Rico, meanwhile, has offices in Washington, Main, New York, Orlando and Kissimme.
Fortaleza not reveal the cause of the cancellation of the assistance of the Governor to the activity.
In a press Stronghold Friday afternoon, it was announced that Garcia Padilla, accompanied by first lady Wilma Pastrana will participate in the summer meeting of the Association of Governors of the United States between 10 and 13 July at the city ​​of Nashville, Tennessee.
And prior to those days "will take a few days to share with his wife and children." The Governor is absent from the island since July 4 in the afternoon.
During the absence of the governor of lsland, Secretary of State, David Bernier, will act as interim governor. That includes date Friday 4 pm to Sunday July 13, with the exception of the period between Sunday 6th and Tuesday July 8, a period in which the Justice Secretary Cesar Miranda will serve as acting governor. That date corresponds to the date except that Bernier will go to Colombia.
Read the whole story
 
· ·

Saturday, July 5, 2014

Barron's: "Puerto Rico may have miscalculated when it enacted legislation recently..." - Puerto Rico: The New Detroit | Former ‘Commonwealth’ Party President Urges His Party to Agree to a Statehood: Yes or No Plebiscite

Puerto Rico: The New Detroit

1 Share
July 4, 2014 2:32 a.m. ET
Puerto Rico may have miscalculated when it enacted legislation recently to allow the restructuring of some $20 billion of debt issued by various public corporations, notably the Puerto Rico Electric Power Authority (Prepa), Puerto Rico Highways and Transportation Authority (Prhta), and the Puerto Rico Aqueduct & Sewer Authority (Prasa).
The goal was to cut loose those financially ailing entities from direct government support and thus preserve needed liquidity for the central government. That in turn was supposed to bolster both Puerto Rico's general-obligation bonds and Cofina, an issuer of about $15 billion of debt backed by sales-tax receipts that has been long viewed as the top credit on the island.
However, Puerto Rico's action has backfired with investors who reason that if the commonwealth is willing to change laws to undermine one group of bondholders, it may be just a matter of time before the economically depressed island seeks to restructure other debt.
cat
As we warned last year, Puerto Rico is moving to restructure some debt, slamming municipal-bond investors as well as bond insurers.
In a major move that surprised the markets, Moody's Investors Service on Tuesday sharply reduced credit ratings on all major Puerto Rico debt issues, which now have across-the-board junk ratings. "By providing for defaults by certain issuers that the central government has long supported, Puerto Rico's new law marks the end of the commonwealth's long history of taking actions needed to support its debt," Moody's wrote. The GOs were dropped to B2 from Ba2, and Cofina's senior debt was cut to Ba3 from Baa1; the latter is an investment-grade rating.
The benchmark 8% Puerto Rico bond due in 2035 fell about 5%, to 85 cents on the dollar, and now yields 9.81%. That $3.5 billion deal was sold with much fanfare in March at a price of about 93. Prepa's long-term debt, which was already depressed in anticipation of a potential default, fell to 40 cents on the dollar from 45 cents. Cofina debt was hard hit, with a 6% issue due in 2041 dropped to 67 cents on the dollar from 82 cents and its yield lifted to 9.4%.
Less than a year ago, Barron's warned in a cover story that Puerto Rico was in danger because of "weak economy, persistent budget deficits, and onerous debt" ("Troubling Winds," Aug. 26, 2013). Our view was that a Puerto Rico debt restructuring was a distinct possibility, despite an insistence to the contrary by the government. Puerto Rico would likely impose only so much financial pain on its relatively poor residents, we reasoned, to benefit the affluent group of mainlanders who own its debt.
The bull case now is that Puerto Rico is committed to protecting the GO debt and Cofina, and that yields, which are tax free on most bonds, are enough to compensate for the risk. A former deadbeat country like Ecuador has issued debt at 7%, and Argentine bonds yield 9%.
But Puerto Rico bond yields still may not be enough to compensate for the risks. The likely restructuring proposal that Puerto Rico is expected to put forth for Prepa and the other government corporations could be punitive. And the new law gives bondholders few rights and essentially strips them of their lien on essential-service revenues. Investors are also unhappy that Puerto Rico is treating its own loans to those public corporations through the Government Development Bank, a commonwealth financing arm, as untouchable.
Puerto Rico has burned its two largest mutual-fund investors, OppenheimerRochester and Franklin, which are suing the commonwealth, arguing the new law is unconstitutional. "The government is effectively saying it is no longer willing to pay back loans used to build Puerto Rico's essential transportation, power, and water and sewer infrastructure, in full or on time," wrote analysts at Nuveen Asset Management last week. "Barring a significant and lasting revival in Puerto Rico's economic trajectory, we believe the commonwealth will continue to struggle with budget deficits and may ultimately enact similar restructuring measures for its general-obligation debt."
The Puerto Rico mess does appear to demonstrate the value of muni-bond insurance because insured debt was trading at far better levels than uninsured bonds. The share price of two leading insurers, Assured Guaranty AGO -2.60% Assured Guaranty Ltd. U.S.: NYSE $23.20 -0.62 -2.60%July 3, 2014 1:00 pm Volume (Delayed 15m) : 3.58M AFTER HOURS $24.00 +0.80 +3.45% July 3, 2014 4:00 pm Volume (Delayed 15m): 29,581 P/E Ratio 4.31 Market Cap $4.17 Billion Dividend Yield1.90% Rev. per Employee $3,496,930 More quote details and news » AGO in  Your Value Your Change Short position (ticker: AGO) and MBIA MBI -4.55% MBIA Inc. U.S.: NYSE $10.29 -0.49 -4.55%July 3, 2014 1:01 pm Volume (Delayed 15m) : 5.48M AFTER HOURS $10.27 -0.02 -0.20% July 3, 2014 3:05 pm Volume (Delayed 15m): 12,046 P/E Ratio 5.78 Market Cap $2.01 Billion Dividend YieldN/A Rev. per Employee N/A More quote details and news » MBI in  Your Value Your Change Short position (MBI), did decline last week, but the companies should be able to weather any Puerto Rico defaults. Assured Guaranty fell 6%, to $23.20, and MBIA was down 10% to $10.29. Investors are worried that the two companies might be forced to raise capital to offset any Puerto Rican losses.
Assured Guaranty has $5.3 billion of exposure to Puerto Rico, including $2.4 billion to the three main corporations likely targeted for debt restructuring, according to its March 10-Q report. MBIA has $4.8 billion of Puerto Rico exposure, including about $2.5 billion to the three corporations.
-- Andrew Bary
__________________________________________
» Héctor Ferrer leaves the political anonymity to ask yes or no consultation statehood
05/07/14 10:32 from Mike Nova's Shared Newslinks
mikenova shared this story . The popular exrepresentante Hector Ferrer Rios left his political anonymity since he became a private citizen to attack statehood at a time when the leadership of the New Progressive Party claimed equality in...
» Former ‘Commonwealth’ Party President Urges His Party to Agree to a Statehood: Yes or No Plebiscite
05/07/14 10:29 from Mike Nova's Shared Newslinks
mikenova shared this story from Puerto Rico Report. A recent president of the ‘Commonwealth’ party used the holiday celebrating the independence of the United States Friday to reiterate his call for a plebiscite in Puerto Ric...
» José Aponte challenges García Padilla to accept a yes or no consultation statehood
05/07/14 08:48 from Mike Nova's Shared Newslinks
mikenova shared this story . PNP General secretary the Governor urged us to accept the proposal of the popular exrepresentante Héctor Ferrer The secretary General of the New Progressive Party (PNP), José Aponte Hernández, ...
» Pierluisi held July 4 on a beach
05/07/14 08:44 from Mike Nova's Shared Newslinks
mikenova shared this story . PNP President PARTICIPATED in the activity With the greatest of Fajardo, Anibal Melendez. Video Nodding full and without any flags, Resident Commissioner Pedro Pierluisi held Friday independence of the United...
» García Padilla is going on vacation and Meeting with governors
05/07/14 08:42 from Mike Nova's Shared Newslinks
mikenova shared this story . I Will attend the summer meeting of the Association of U.S. Governors Fortress That said Friday the governor Alejandro García Padilla Attend the summer meeting of the Association of Governors of the Unit...
» Alternative approach to the energy crises
05/07/14 08:39 from Mike Nova's Shared Newslinks
mikenova shared this story . July 5, 2014 Amid the overall alarm over the crises in the Electric Power Authority (PREPA), keep the perspective of what is still the future of the industry and the overall development of Puerto Rico: the cr...
» Former ‘Commonwealth’ Party President Argues for Plebiscite on Statehood
04/07/14 22:24 from Puerto Rico Report
A recent president of the ‘Commonwealth’ party used the holiday celebrating the independence of the United States Friday to reiterate his call for a plebiscite... Read More
» Former ‘Commonwealth’ Party President Urges His Party to Agree to a Statehood: Yes or No Plebiscite
04/07/14 22:24 from Puerto Rico Report
A recent president of the ‘Commonwealth’ party used the holiday celebrating the independence of the United States Friday to reiterate his call for a plebiscite... Read More