USA TODAY: The root causes of Puerto Rico’s debt crisis bear a striking resemblance to the financial collapse of Detroit, which filed for bankruptcy in 2013 to escape a crushing debt load amid a severely diminished tax base.
But there’s one big difference between Puerto Rico and Detroit, aside from the obvious fact that one is a commonwealth and one is a city: Puerto Rico can’t legally file for bankruptcy.At least not yet…
The White House has ruled out a bailout but signaled that Congress should consider legislation allowing the commonwealth’s debt-strapped public entities the chance to file for municipal bankruptcy… (more)
EDITOR: Bond investors make pigs of themselves on the supposition that the tax payers will be made to pay them. To hell with that. Let them gauge the ability of the government to pay as they do with other investments.
