Puerto Rico files for bankruptcy in last-ditch attempt to sustain public services
Experts applaud decision that could protect vulnerable communities and return public debt of more than $70m to manageable levels, but creditors cry foul
If PR only owned $70 million then they really wouldn’t be having a problem.
Detroit has about 700,000 people.
20 billion dollar debt when they declared bankruptcy.
Puerto Rico has more than 3 million people.
Go figure.
Experts applaud decision that could protect vulnerable communities
Vulnerable communities? They mean non-White people. Yet again Culture trumps all else. PR has a stable political system. It has access to American courts. It should be wealthy.
Instead they are Venezuela’s little brother. Dependent on welfare from the White population on the mainland.
Feckless Latins cannot but feck.
When Congress hands a socialist leaning provintial government a magic money tree, then kills the golden goose, what else other than massive public debts can we expect?
We’ll Venezuela but we’re talking about a small region in a far larger and richer nation, even if we include Mississippi.
Experts applaud decision that could protect vulnerable communities
I like the use of the term ‘experts’, but the only one they cite is the head of some obscure political pressure group (or “an NGO that focuses on debt relief” as the Guardian calls it).
$70bn for 3.4m people. Impressive.
The truly amazing thing is that people still keep on lending money to places like this, Greece, etc.
The population has dropped by over 1/20th in the last 5 years, probably slightly more for those of working age. Using my Hackney mathematics that means debt per capita is going down so it will be easier to sort out a solution.
Rob,
In PR’s case people stopped lending money because federal tax credits ended.
Just to make it clear, yes PR did over spend. Unfortunately it requires un-electable politician to not see a magic money tree over-exploited.
Another news article that will be filed under “W” in a small bedroom in Ely.
“Countries can’t go bankrupt.”
“We need Government debt”
“Banks create money out of thin air”
Er, if PR only owned $70m they would have a pretty serious problem.
Case of Muphry’s law given the comment on the non-error of the husband from Bengaluru :-3
“Countries can’t go bankrupt.”
Technically that’s right, isn’t it? They have sovereign immunity and therefore they can choose to default without a court’s permission.
True, dearime, but the response David S Landes reported in his book “The Wealth and Poverty of Nations” went something like this (I haven’t got my copy handy for the exact quote)
But you’re a sovereign nation, you can always default?
Yes, but then who would we borrow from?
“There’s a Sucker Born Every Minute”
… and often found running a government and spending your money.
“Yes, but then who would we borrow from?”
That may explain why PR has set up a system whereby it can use a court to oversee its defaulting. Maybe it hopes that it’ll be easier to borrow again sooner.