Not only Greece, but Puerto Rico is on the edge of bankruptcy

[Vandalshandle]

News from The Associated Press

Jeb Bush Supports Chapter 9 for Puerto Rico


I have been predicting a correction this year since early Feb., and I think this may be it. I bailed out mid Feb, and am looking for a 15%-20% correction, especially when the fed starts raising interest. At that point, there will be terrific buying opportunities!

 

[Moonglow]

Well they damn sure will want our help, but not state hood...

 

[Vandalshandle]

Well they damn sure will want our help, but not state hood...

PR has been spending our tax money without having to contribute anything to the USA for so long that there are few, if any, alive there who remember when it was different.

 

[Moonglow]

Well they damn sure will want our help, but not state hood...

PR has been spending our tax money without having to contribute anything to the USA for so long that there are few, if any, alive there who remember when it was different.

I know....We need to stop the welfare checks until they are a state, then I'll get the contract to sew another star on the flag...

 

[CrusaderFrank]

 

[william the wie]

PR has been in big trouble for a long time. IL has been in default for more than a decade, maybe two by now but they have not yet defaulted on actual bonds yet so that is not news either.

 

[Treeshepherd]

Nash Equilibrium: If each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitutes a Nash equilibrium. -wiki

No party to these debt negotiations knows more about Nash equilibriums than Greek Finance Minister Yanis Varoufakis, an academic economist who co-authored a textbook on game theory and who took to Twitter after the recent death of John Nash Jr. to express his debt to the genius mathematician.

The EU, for the sake of the EU as a whole, wants Greece to carry out the austerity promises made by previous Greek governments. The Greeks aren't going to elect a government that's willing to comply. Neither side in the negotiations sees any advantage to changing strategy, so nothing is going to change. It's not like there's a global referee who can decide for one party over the other.

PR sees all this and says, "Hey, Greece isn't paying. Why should we pay?"

Eventually everyone is going to wake up to the fact that there's too much debt in the world to ever be re-payed, and there's no global IRS to enforce debt obligations. In the meantime (despite today's epic equities plunge), the US wins as the least sick in a world full of diseased nations.