Complex Financial Status of PR Pre-Disaster

For the past few days, I have been posting articles about various facets of the economic and financial conditions in Puerto Rico before H. Maria hit the island.  Added to what I shared so far is this article from Bloomberg News about the complex financial and legal circumstances of the massive debt that Puerto Rico had before the hurricane hit. The Diva can barely understand the complexities of their situation. See: Trump Could Push the Justice Department Into Puerto Rico’s Debt Fight.

The bottom line: the recovery in PR is likely to be fractious, lengthy, and perhaps the most complicated ever experienced in the U.S.

This entry was posted in Uncategorized. Bookmark the permalink.

2 Responses to Complex Financial Status of PR Pre-Disaster

  1. recoverydiva says:

    I agree. Puerto Ricans need serious help with this matter in order to recover adequately.

  2. plodinec says:

    While I’m not a big fan of using bankruptcy to elude debt, I see no other path forward. Bond holders a) should not expect the federal government to make them whole; and b) should not expect an island with almost no assets to pay everything back. Investment entails risk, whether it’s my 401k or investment in risky Puerto Rican bonds. Wall Street needs to accept the “haircut” and write off its losses.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s