Here Comes "Prexit": Puerto Rico In "Death Spiral", Debts Are "Not Payable"

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

 

[Skylar]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

 

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

 

[Skylar]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

 

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

Fuck off, you didn't even read the article, stop wasting my time.

 

[Steinlight]

So the question is, will we bailout this shithole, or cut off this third world dead weight and revoke their territorial status?

 

[Skylar]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

Fuck off, you didn't even read the article, stop wasting my time.

I checked the source. Its a doom factory. That's all Zerohedge does. And its record of accuracy is essentially worse than guessing.

Oh, and its anonymous. With its author being a character from Fight Club.

But as I said, its not like its audience actually asks questions. Or even thinks particularly hard about it.

 

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.
Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

Fuck off, you didn't even read the article, stop wasting my time.

I checked the source..

No you didn't, so fuck off and stop wasting our time.

 

[Skylar]

Zero Hedge pretty much bases its business model on advertising revenue from never ending predictions of doom.

And as you just demonstrated, there's never a shortage of folks willing to gobble down such predictions. Conservatives in general have Armageddon fantasies that border on a sexual fetish. Making Zero Hedge rather like their porn.

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

Fuck off, you didn't even read the article, stop wasting my time.

I checked the source..

No you didn't, so fuck off and stop wasting our time.

You wasted your time....by citing an anonymous source with a laughably shit record of accuracy that always does the same thing: predicts doom.

I'm the one informing you of the poor investment you just made, timewise.

 

[Steinlight]

Oh, look, a **** with zero substance is polluting the only thread worth a damn in Current Events. Go back to one of your stupid confederate flag or gay marriage threads. Leave issues like the looming debt crisis in Puerto Rico to adults.

I'm commenting on the absolute shit record of Zerohedge predictions of imminent economic doom. Which makes this latest prediction of imminent economic doom a little....

..predictable. Its what Zerohedge does. It not like their audience actually asks questions.

Fuck off, you didn't even read the article, stop wasting my time.

I checked the source..

No you didn't, so fuck off and stop wasting our time.

You wasted your time....by citing an anonymous source with a laughably shit record of accuracy that always does the same thing: predicts doom.

I'm the one informing you of the poor investment you just made, timewise.

You don't even know what the article said or who they referenced you dumb b-itch. You probably don't even know the governor of Puerto Rico and couldn't even locate it on a map.

 

[RoshawnMarkwees]

Jane, you ignorant slut...

 

[Statistikhengst]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Ahhh, Zero Hedge!!!


"The sky is falling, the sky is falling, we are all gonna die, we are all gonna die!!!"

 

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Ahhh, Zero Hedge!!!


"The sky is falling, the sky is falling, we are all gonna die, we are all gonna die!!!"

Go back to some Hilary Clinton thread or one of your autistic threads on polling for an election 2 years away that doesn't matter. Leave the discussion on puerto rico's debt crisis to adults.

 

[B. Kidd]

So the question is, will we bailout this shithole, or cut off this third world dead weight and revoke their territorial status?

Depends on the amount of U.S. bank exposure to Puerto Rico, which we don't know, and the banks ain't sayin'.........

 

[Steinlight]

So the question is, will we bailout this shithole, or cut off this third world dead weight and revoke their territorial status?

Depends on the amount of U.S. bank exposure to Puerto Rico, which we don't know, and the banks ain't sayin'.........

According to their Governor, they have 72 billion in debts. An issue along with bank exposure is how this affects bond holders. This could have a domino effect where if they don't get some structured plan to pay down this debt, states and municipalities will see a hike in their interest rates as well.

 

[Manonthestreet]

http://www.nytimes.com/2015/06/29/b....html?partner=socialflow&smid=tw-nytimes&_r=0 there...... a "reliable" link for libs....now maybe they can address the topic

 

[Steinlight]

If Puerto Rico does not implement austerity and start paying back their creditors, this could lead financially vulnerable states and municipalities into bankruptcy risk as well, since borrowing will become more expensive in the greater bond market.

 

[Statistikhengst]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Ahhh, Zero Hedge!!!


"The sky is falling, the sky is falling, we are all gonna die, we are all gonna die!!!"

Go back to some Hilary Clinton thread or one of your autistic threads on polling for an election 2 years away that doesn't matter. Leave the discussion on puerto rico's debt crisis to adults.

Ahhh, the butthurt sits deep with you, I see...

Gesendet von meinem GT-I9515 mit Tapatalk

 

[B. Kidd]

And then there's this............

Millions of American Retirees at Risk if Puerto Rico Defaults on Debts Fox Business

 

[Steinlight]

Could the debt crisis in Puerto Rico be the lynchpin for the US bond market? Will be interesting to see how this debt crisis evolves in the coming months now the sovereign debt crisis that has plagued Europe is a little closer to home.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it. Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.”

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this 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."

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

Here Comes Prexit Puerto Rico In Death Spiral Debts Are Not Payable Governor Refuses To Kick The Can Zero Hedge

Ahhh, Zero Hedge!!!


"The sky is falling, the sky is falling, we are all gonna die, we are all gonna die!!!"

Go back to some Hilary Clinton thread or one of your autistic threads on polling for an election 2 years away that doesn't matter. Leave the discussion on puerto rico's debt crisis to adults.

Ahhh, the butthurt sits deep with you, I see...

Gesendet von meinem GT-I9515 mit Tapatalk

Fuck off loser. Stop polluting the thread.