Puerto Rico is the Next Greece

It's the Same Old MO: Entice With Money, Then Foreclose

It's deja vu all over again as Yogi Berra would say. Another country that went down the road of debt accumulation just to pay for essential public services. Since Puerto Ricans are born American citizens, you'd think that Puerto Rico could just declare bankruptcy as Detroit, Birmingham and San Bernardino did. But no, US law forbids that. On May 2, a bond payment of $422 million was missed, and a $2 billion payment comes due in July. There's no way Puerto Rico can pay. Puerto Rico is begging Congress for debt relief. But no debt relief is in sight. Here are the facts: Puerto Rico is $70 billion in debt. 45% of the people live in poverty. The unemployment rate is over 12%.   [Read more...]

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