Puerto Rico defaults

[elfbarf]

[quote] The commonwealth paid a mere $628,000 toward a $58 million debt bill due Monday to creditors of its Public Finance Corporation. This will hurt the island's residents, not Wall Street. The debt is mostly owned by ordinary Puerto Ricans through credit unions.

"This was a decision that reflects the serious concerns about the Commonwealth's liquidity in combination with the balance of obligations to our creditors and the equally important obligations to the people of Puerto Rico," Puerto Rico's Government Development Bank president Melba Acosta Febo said in a statement.

The default is a historic moment in Puerto Rico's economic "death spiral," a term the island's governor, Alejandro Garcia Padilla, has used. The island is struggling with about $70 billion in total outstanding debt, and its economy is in recession.

Padilla has put together a team to come up with a plan to restructure Puerto Rico's debt crisis by the end of the summer. [/quote]

[url]http://money.cnn.com/2015/08/03/investing/puerto-rico-default/index.html[/url]

[Sableye]

Well shit, how did we (the US) let it get to this, I'm not exactly familiar with how much autonomy we give our territories but it seems like we shouldn't have let them default

[A B.A. Survivor]

So... how'd this happen?

[OmniConsUme]

Think Predatory Loan Companies X100

[agentfazexx]

So what happens now?

[OmniConsUme]

Puerto Rico now has to get citizens to pay for loans the government has... Note: Declaring Bankruptcy will not be allowed... Wall Street has seen to that...

[EmperorScorpious]

Wasn't there a video or infographic explaining how the territory system works for Puerto Rico is that is assumes all the risks of investments with little of the benefits or protections of them?

[agentfazexx]

[QUOTE=OmniConsUme;48366722]Puerto Rico now has to get citizens to pay for loans the government has... Note: Declaring Bankruptcy will not be allowed... Wall Street has seen to that...[/QUOTE]

So I guess the next steps to this are higher taxes then, correct? I travel to PR very frequently (once a year or more), so I assume this affects tourism as well?

[Antdawg]

[QUOTE=agentfazexx;48367088]So I guess the next steps to this are higher taxes then, correct? I travel to PR very frequently (once a year or more), so I assume this affects tourism as well?[/QUOTE]

Higher taxes are dangerous considering they're in a recession.

[editline]4th August 2015[/editline]

[QUOTE=OmniConsUme;48366722]Puerto Rico now has to get citizens to pay for loans the government has... Note: Declaring Bankruptcy will not be allowed... Wall Street has seen to that...[/QUOTE]

Who else would pay for loans that governments take out? Governments are funded by taxes. Who pays taxes?

[OmniConsUme]

[QUOTE=Antdawg;48367461]Higher taxes are dangerous considering they're in a recession.[/QUOTE]

Tell that to the loan companies... It will not matter... actually... I think that is the plan... Puerto Rican Virtual Slavery.

[editline]4th August 2015[/editline]

[QUOTE=Antdawg;48367461]Who else would pay for loans that governments take out? Governments are funded by taxes. Who pays taxes?[/QUOTE]

Apparently The Puerto Rican Government was able to pay off one company's loan... only another to show up and said not so fast... you have to still pay their loan.