It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Puerto Rico facing historic default on its $72 billion debt

page: 1
10
<<   2 >>

log in

join
share:

posted on Jun, 29 2015 @ 01:24 PM
link   
Meanwhile, as everyone is focused on Greece and the EU, is seems that there is another real crisis in the US that no-one seems to mention:
USA Today
This topic should be first and foremost in many retirees minds as a huge portion of mutual funds have purchased Puerto Rico's debt so they could capitalize on the high paying coupons. Now, if PR defaults, those bonds will turn to junk and the holders of the debt will lose a significant portion of their holdings which will of course be handed down as losses for many pension funds.

Puerto Rico's Governor seems to get it as he says:


“the debt is not payable. There is no other option. I would love to have an easier option. This is not politics. This is math.”

This seems to be the tipping point of a potential huge crash in the US and subsequently the world unless somebody steps in and gives some help (read angel).

edit on 29-6-2015 by notmyrealname because: (no reason given)




posted on Jun, 29 2015 @ 02:00 PM
link   
I had no idea that the Bronx had so much debt.



posted on Jun, 29 2015 @ 02:02 PM
link   
Looks like the "Greece of the Western hemisphere". Though I doubt it will be handled quite as disastrously as Greece has so far.



posted on Jun, 29 2015 @ 02:05 PM
link   
a reply to: Blazemore2000
The debt is going to be a huge problem for the funds that own it and it sets a precedence for more defaults coming soon….



posted on Jun, 29 2015 @ 02:10 PM
link   

originally posted by: notmyrealname
a reply to: Blazemore2000
The debt is going to be a huge problem for the funds that own it and it sets a precedence for more defaults coming soon….

Yes.
There certainly will be more.



posted on Jun, 29 2015 @ 02:35 PM
link   

originally posted by: butcherguy

originally posted by: notmyrealname
a reply to: Blazemore2000
The debt is going to be a huge problem for the funds that own it and it sets a precedence for more defaults coming soon….

Yes.
There certainly will be more.

I can't stress this enough to people looking for investments strategies: GET OUT OF PAPER!

All paper, as the next contraction will make 2008 look just great..
edit on 29-6-2015 by notmyrealname because: (no reason given)



posted on Jun, 29 2015 @ 02:38 PM
link   
Tsipras says "to hell with IMF! We will survive."

Greece announces it will default!



posted on Jun, 29 2015 @ 02:59 PM
link   

originally posted by: texasgirl
Tsipras says "to hell with IMF! We will survive."

Greece announces it will default!


My only feeling is best portrayed here:



posted on Jun, 29 2015 @ 03:06 PM
link   
You can bet that the US has a contingency plan. I would guess that Obama may even try to pull them into statehood prior to his leaving office as has been looked at before....only now the citizens there seem to want it by a majority according to polls.

With Cuba getting a lot of new freedoms with the US I would imagine that the US would look to this maneuver in order to re-open a lot of it's military bases/activity there in order to monitor everything from a southerly point with Cuba a bit better.

This would also allow the US to monitor anything going on with the new Nicaragua Canal, and once completed, allow them to heavily influence the shipping that goes through there.



posted on Jun, 29 2015 @ 03:09 PM
link   
a reply to: Vasa Croe

Excellent insight! I can't agree more. The only problem is who is going to give the US the money to bail anyone out. Buying another state while bankrupt can be a bit difficult.



posted on Jun, 29 2015 @ 03:11 PM
link   

originally posted by: notmyrealname
a reply to: Vasa Croe

Excellent insight! I can't agree more. The only problem is who is going to give the US the money to bail anyone out. Buying another state while bankrupt can be a bit difficult.


They won't....the US would acquire PR's debt as a part of it becoming a state. PR would effectively get itself out of trouble with the US being the debt holder at that point....then the exploitation of PR gets fully recognized. Of course there would also be an emergency economic bailout plan in place as well....effectively nullifying any of the real debt to the US. So we would essentially acquire PR for free.....
edit on 6/29/15 by Vasa Croe because: (no reason given)



posted on Jun, 29 2015 @ 03:33 PM
link   

originally posted by: notmyrealname
a reply to: Vasa Croe



Excellent insight! I can't agree more. The only problem is who is going to give the US the money to bail anyone out. Buying another state while bankrupt can be a bit difficult.



Maybe they're just going to let that asteroid hit Puerto Rico like all the doomsayers on here are predicting.



posted on Jun, 29 2015 @ 04:47 PM
link   
S&P reduces rating to CCC-

Perfect place for new budding progressives as we will probably try to bail them out with our own monopoly money….

Downgrade

...Of course the actual debt is much larger that currently reported….



posted on Jun, 29 2015 @ 05:03 PM
link   
One Year ago:

Zero Hedge Reports

But all US investment banks told their clients that PR would be Okay and it would all turn out okay effectively kicking the can down the road for another year.
edit on 29-6-2015 by notmyrealname because: redundant


If you want to know why, you can consider "Huge Rips" for the bankers and FAs selling them.
edit on 29-6-2015 by notmyrealname because: (no reason given)

edit on 29-6-2015 by notmyrealname because: damn thimbs , erm, thumbs



posted on Jun, 29 2015 @ 06:06 PM
link   
Bonds issued by the government of Puerto Rico and its subdivisions are exempt from federal, state, and local taxes (so called "triple tax exemption"). So that was the way the government raised revenue, by just selling and selling bonds. At the same time, they didn't bother letting the state energy company upgrade from crude oil to natural gas to take advantage of lower prices. So now they are stuck $80 billion of debt. Try and raise taxes to pay off the debt and employers stop hiring, and everyone migrates to the USA or Cuba.



posted on Jun, 29 2015 @ 06:18 PM
link   
a reply to: stormcell
Yep and all of the 'smart' money (hedge funds etc) sold their positions to mutual funds that gobbled them up for the effective yield benefits and the high coupon rates. Now there are some 'hurting units' for mutual funds who have major positions in this junk and that means that retirees should be paying attention to this a lot.

But this is, of course, not important to most as people are paying attention to whatever nonsense is playing on the idiot-box today. Wait a few weeks and see how relevant of an issue this becomes. This one will sting!



posted on Jun, 30 2015 @ 01:09 AM
link   
a reply to: notmyrealname

If the elite want it to burn, let it burn. The more the bankers hold on to this insanity, the sooner we reach revolution.

The world debt is ridiculous and complete BS.

I would rather do without than to keep lining the pockets of thieves.

The world needs to follow Iceland. There is no reason the economy needs to crash. The debt needs to be erased EVERYWHERE.

No debt = Problem solved


(post by xfifaonline removed for a serious terms and conditions violation)

posted on Jun, 30 2015 @ 11:05 AM
link   

originally posted by: xfifaonline
Added titles will be added to the annual "on a rolling basis," according to Microsoft. New releases will be priced at £3 ($4.30, 360 Microsoft points) for a standard-definition rental and at £4.50 (540 points, $6.45) for top defitnition, with library films advancing in hardly lower. At the aforementioned time Microsoft aswell arise that the Xbox Reside quiz 1 vs. 100 was advancing to the region FIFA 15 Account, forth with 12 new songs for Lips, the firm's yield on Sony's multimillion-dollar Singstar franchise. The beforehand will be fabricated attainable over the next three weeks and will affection The Rasmus, Hinder and Coldplay, and more.

Could you kindly let me know what you are commenting on? I am confused.



posted on Jun, 30 2015 @ 11:36 AM
link   
a reply to: notmyrealname
That appears to be spam.... by a new member.
Bad move by them.




top topics



 
10
<<   2 >>

log in

join