NEW YORK TIMES: …The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment.
“The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.”
It is a startling admission from the governor of an island of 3.6 million people, which has piled on more municipal bond debt per capita than any American state… (more)
EDITOR: The bond industry routinely puts the best face it can on a pig and sells it to the public. Investors pig out on higher interest rates. The bond selling industry is no where to be found; the investors howl for their interest and principle; and the public is expected to pay. Some racket!
