Bankrupt Puerto Rico

[singular_me]

$72B worth of debts is surely a lot for a small island... maybe a place where to go live when things have calmed down a bit... the boom always comes back..... after the crash

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Vulture funds demand brutal austerity measures from bankrupt Puerto Rico
30th July 2015

‘A group of hedge funds that hold a large proportion of Puerto Rico’s debt have demanded that its government fires teachers, collects more taxes and reforms labor laws, as the US territory contemplates default.

The demand was stated in a report written by three economists with strong links to the International Monetary Fund and was commissioned by the Ad Hoc Group of Puerto Rico, which comprises 34 hedge funds. The financial organizations specialize in buying “distressed debt” – finances owed by borrowers who have no capacity to pay – for pennies on the dollar, and then attempting to extract at least some of the money. Known by the derogatory monicker “vulture funds,” many of the 34 funds were involved in prominent bankruptcies during the 2008 financial crisis, and previous national defaults.

Together they are owed $5.2 billion in bonds issued by the Caribbean island, which belongs to the US, but is not considered a part of it. Last month, Alejandro Garcia Padilla said the island’s $72 billion overall debt was “unpayable.”

http://www.rt.com/news/311040-puerto-rico-vulture-funds/

[Cebu_4_2]

$72B worth of debts is surely a lot for a small island... maybe a place where to go live when things have calmed down a bit... the boom always comes back..... after the crash

----------------------------------------------------------------------
Vulture funds demand brutal austerity measures from bankrupt Puerto Rico
30th July 2015

‘A group of hedge funds that hold a large proportion of Puerto Rico’s debt have demanded that its government fires teachers, collects more taxes and reforms labor laws, as the US territory contemplates default.

The demand was stated in a report written by three economists with strong links to the International Monetary Fund and was commissioned by the Ad Hoc Group of Puerto Rico, which comprises 34 hedge funds. The financial organizations specialize in buying “distressed debt” – finances owed by borrowers who have no capacity to pay – for pennies on the dollar, and then attempting to extract at least some of the money. Known by the derogatory monicker “vulture funds,” many of the 34 funds were involved in prominent bankruptcies during the 2008 financial crisis, and previous national defaults.

Together they are owed $5.2 billion in bonds issued by the Caribbean island, which belongs to the US, but is not considered a part of it. Last month, Alejandro Garcia Padilla said the island’s $72 billion overall debt was “unpayable.”

http://www.rt.com/news/311040-puerto-rico-vulture-funds/


For an island so close to the main US it's really a shame that it is so 3rd world. I know if the US was nice and all it would be as any other over priced place to live. They should tell the hedge funds to go pound sand.

[singular_me]

dont they have a huge tourist industry there?


For an island so close to the main US it's really a shame that it is so 3rd world. I know if the US was nice and all it would be as any other over priced place to live. They should tell the hedge funds to go pound sand.

[palani]

In the 1930's the U.S. turned its back on substance and made debt its' currency.

Puerto Rico is quite rich as a result of being so far in debt. Not in substance though ... in obligations.

And as Puerto Rico is a possession of the United States ... any bailout or bankruptcy talk concerns a FEDERAL solution and not just a PR solution.

[Cebu_4_2]

dont they have a huge tourist industry there?


Good question, never looked into it before.

[expat4ever]

Yes the tourist industry is pretty large and many PR's also serve in the military to get that pension so plenty of US dollars flowing through the island just mismanagement as in all Governments.
Most governments of the world are bankrupt, its just a question of weather or not we want to keep throwing more funny money at em.

[ximmy]

For an island so close to the main US it's really a shame that it is so 3rd world. I know if the US was nice and all it would be as any other over priced place to live. They should tell the hedge funds to go pound sand.


I wonder if it is as third world as Glendale, ca... I was just there today... crazy dirty nut and fruit filled place

[Cebu_4_2]

I wonder if it is as third world as Glendale, ca... I was just there today... crazy dirty nut and fruit filled place


Pretty much the same as Manila or Cebu, never experienced Glendale myself.

[singular_me]

may be better than hawaii...

dont see how the average citizen could be totally broke with so many tourists flocking though


Yes the tourist industry is pretty large and many PR's also serve in the military to get that pension so plenty of US dollars flowing through the island just mismanagement as in all Governments.
Most governments of the world are bankrupt, its just a question of weather or not we want to keep throwing more funny money at em.

[Cebu_4_2]

may be better than hawaii...

dont see how the average citizen could be totally broke with so many tourists flocking though

censes and permits to mingle with the general public and tourists. If you are not in the main areas it is more laid back but you really can only make about 1-2 usd a day if you bust ass. Taking a chance in a populated tourist area will nut you much more money but you can't get caught.
As it goes in the phil, you nee li

[singular_me]

well, the goal is to find a private boat owner coasting in the Caribbean and trade some work for the trip... what I had in mind for hawaii too... find a boat going down latin america

betting on my well educated-world traveler adventurous look... building a friendly rapport and find the right people takes some time, Id guess up to 6 months for sure. possibly more.






censes and permits to mingle with the general public and tourists. If you are not in the main areas it is more laid back but you really can only make about 1-2 usd a day if you bust ass. Taking a chance in a populated tourist area will nut you much more money but you can't get caught.
As it goes in the phil, you nee li

[expat4ever]

Pretty much the same as Manila or Cebu, never experienced Glendale myself.
Manila was just to many people for me. Like 12 million in one city. That's more than on the entire Island of Cuba.

IMO pr is overpriced right now. Same with Mexico, Costa Rica, Panama, Vilcabamba. Nicaragua and Honduras are still priced ok but as more people discover them they too will go up. The crazy expense in the US is driving more and more elderly to become expats. Good for central America but bad for the end of the boomers who will retire last.

[palani]

The crazy expense in the US is driving more and more elderly to become expats.
A change of position is not synonymous with a change of condition. If you cannot regulate yourself where you are a move to somewhere else will not be any more successful.

The drug war in PR is more intense than in Mexico. There are said to be more per capita drug related deaths in PR than anywhere else. I did enjoy the drives through the mountains though. People would set up stands along the road and offer lechon asado (BBQ pork) served on plantain leaves with pan de agua.

[singular_me]

A change of position is not synonymous with a change of condition. If you cannot regulate yourself where you are a move to somewhere else will not be any more successful.

.

I agree with that, I did pretty well up here as I adapted to the local mentality (rural/mountain people can be attaching and most are very generous) hard working and integrity... not everybody can get 4 years of house sitting straight. Its kinda rustic over all with an out house though. My dodge ram 1500 is my only luxury... well, not exactly. Here a truck in good condition is a must.

now time for a new adventure

[expat4ever]

A change of position is not synonymous with a change of condition. If you cannot regulate yourself where you are a move to somewhere else will not be any more successful.


Of course it will. If your on a fixed income in the US and barely making it you can move to a place with a lower cost of living and enjoy life. Probably 80-90% of the countries in the world have a lower cost of living than the US. Europe is probably more expensive. Everyplace else is less. You do give things up to make that move from a 1st to a 2nd or 3rd world country but quality of life usually improves.

[Jewboo]

well, the goal is to find a private boat owner coasting in the Caribbean and trade some work for the trip...




http://photos.vanityfair.com/2014/06/13/539b1ca51536723967b335a1_s-leonardo-di-caprio-world-cup-yacht.jpg

https://a248.e.akamai.net/f/1202/1579/4m/i.dailymail.co.uk/i/pix/2013/05/26/article-2331383-1A03D644000005DC-570_634x419.jpg

:rolleyes:

[singular_me]

always up to sensationalize anything I say... HAHAHAHA... I want to learn how to sail with other REAL adventurers, book.

stay in idaho gardening... while I travel the world.

[singular_me]

agree. everything is relative... generally things become more difficult when one cannot live simple.



Of course it will. If your on a fixed income in the US and barely making it you can move to a place with a lower cost of living and enjoy life. Probably 80-90% of the countries in the world have a lower cost of living than the US. Europe is probably more expensive. Everyplace else is less. You do give things up to make that move from a 1st to a 2nd or 3rd world country but quality of life usually improves.

[Jewboo]

...HAHAHAHA...stay in idaho gardening... while I travel the world.




https://dougsatre.files.wordpress.com/2013/01/burundi-casava.jpg
Return to your Tutsi village and teach them to grow Idaho potatoes.


https://c.photoshelter.com/img-get/I00007Yw3kXOX2ic/s/750/600/cg8JeffreyQ2209.jpg
Too good for us now Goldi?


:D

[singular_me]

race card again... it is so tiresome, really

lets meet in 2 or 3 years to do a trekking in the andes or arctica.... both are on my list.



[COLOR=#008000][SIZE=3]Return to your Tutsi village and teach them to grow Idaho potatoes.

[Jewboo]

my own flesh and blood again... it is so tiresome, really to worry about my Tutsi family in Africa while I bum around North and South America without a care in the world.

Fixed it for 'ya.

:)

[singular_me]

my family is european... it is the education that matters... however my father is a caucasian and forgetting this in your tirades makes you color blind. Unfortunately there is no treatment for your condition... LOL

not to mention that you are aware of my skin color since about 4 years or so, and keep bringing it up since the rwanda thread in which I dared compare low IQ vs high IQ savagery... you aren't genuine on top of that.


Fixed it for 'ya.

:)

[Jewboo]

my family is european... it is the education that matters... however my father is a caucasian and forgetting this in your tirades makes you color blind. Unfortunately there is no treatment for your condition... LOL...not to mention that you are aware of my skin color since about 4 years or so, and keep bringing it up since the rwanda thread in which I dared compare low IQ vs high IQ savagery... you aren't genuine on top of that.

Never been able to understand why you have apparently always rejected and ignored your Tutsi mom's side of your family. Not being very "Singular Me" now is it?


:(?? do they even exist in your constantly-touted Singularity?

[singular_me]

the woman that raised me, my stepmother, is a caucasian too. thats the thinking that defines rapports above all. skin color sword does not lead anywhere: ever wondered how a white, raised by a remote african tribe, would be addressing you?

additonally I dont have the 'monkey' gene as I am Rh negative.

good job, book, keep derailing all my threads because I LOOK inter racial, as if I was responsible for my birth.



Never been able to understand why you have apparently always rejected and ignored your Tutsi mom's side of your family. Not being very "Singular Me" now is it?


:(?? do they even exist in your constantly-touted Singularity?

[Jewboo]

the woman that raised me, my stepmother, is a caucasian too. thats the thinking that defines rapports above all. skin color sword does not lead anywhere: ever wonder how a white raised by a remote african tribe, would be addressing you? additonally I dont have the 'monkey' gene as I am Rh negative.

https://www2.le.ac.uk/departments/emfpu/genetics/explained/images/mtDNA-egg-and-sperm.gif

Your stepmother has nothing to do with it. HALF of Goldissima is from your mom via mitochondria dna. How can Goldissima call herself "Singular Me" while literally ignoring your mom and her Tutsi tribe? You have aunts and uncles and nieces and nephews that you apparently don't even include in your own Singularity. More like Halfularity. More like Half Me.

:(?? i'm being sincere here...i just don't get you...lol.

[Hitch]

always up to sensationalize anything I say... HAHAHAHA... I want to learn how to sail with other REAL adventurers, book.

stay in idaho gardening... while I travel the world.

Singular, I urge you to be very careful on this adventure. I'm a sailor, work in the industry, and know and have experienced a fair share. Only sail, especially in the ocean, with people you trust your life with. I've heard too many horror stories to post. As a boat owner myself, and a licensed captain, the thought of taking on crew for an ocean passage is a tough one if I don't know them very well.

Being a woman, you will get picked up as crew very easily. That might not be a good thing though. People change once far from shore, and you'll most likely be sharing close quarters with people you don't know, and don't know who they will become.

A lot of boat captains seem like the nicest sincere people. Get on a boat with them, and they become very different though.

[singular_me]

I can imagine possible horror stories on a boat in the middle of the ocean...

thanks for the tip - I wont travel alone but with my 7 year partner (we got back together last april after a 9 month break up). In fact we'd be looking for a decent size boat with a captain, not more than a 4 people total - us not included. I dont think we'd be interested in larger crew. From Hawaii preferably since several nice people expect our visit at some point. Or from FL... options are open.

But if we delay Hawaii, I also could fly to Peru next spring for about 3 weeks, in which case I will do it alone but with a contact list of friendly places where to rest and eat.




Singular, I urge you to be very careful on this adventure. I'm a sailor, work in the industry, and know and have experienced a fair share. Only sail, especially in the ocean, with people you trust your life with. I've heard too many horror stories to post. As a boat owner myself, and a licensed captain, the thought of taking on crew for an ocean passage is a tough one if I don't know them very well.

Being a woman, you will get picked up as crew very easily. That might not be a good thing though. People change once far from shore, and you'll most likely be sharing close quarters with people you don't know, and don't know who they will become.

A lot of boat captains seem like the nicest sincere people. Get on a boat with them, and they become very different though.

[ximmy]

I can imagine possible horror stories on a boat in the middle of the ocean...

thanks for the tip - I wont travel alone but with my 7 year partner (we got back together last feb after a 9 month break up). In fact we'd be looking for a decent size boat with a captain, not more than a 4 people total - us not included. I dont think we'd be interested in larger crew. From Hawaii preferably since several nice people expect our visit at some point. Or from FL... options are open.

But if we delay Hawaii, I also could fly to Peru next spring for about 3 weeks, in which case I will do it alone but with a contact list of friendly places where to rest and eat.

Your partner?


https://www.youtube.com/watch?v=XJ4Y7tgK4JI

[singular_me]

back to the OP

only 40% of adults are working or looking for work... or is there a huge grey economy?

Puerto Rico’s economy is in a death spiral and it could threaten the entire United States bond market.

https://www.youtube.com/watch?v=k4iuD7xQDxE

[Hitch]

I can imagine possible horror stories on a boat in the middle of the ocean...

thanks for the tip - I wont travel alone but with my 7 year partner (we got back together last april after a 9 month break up). In fact we'd be looking for a decent size boat with a captain, not more than a 4 people total - us not included. I dont think we'd be interested in larger crew. From Hawaii preferably since several nice people expect our visit at some point. Or from FL... options are open.

But if we delay Hawaii, I also could fly to Peru next spring for about 3 weeks, in which case I will do it alone but with a contact list of friendly places where to rest and eat.

Well, having a partner helps, you can watch each other's backs.

Good luck, and be safe.

[palani]

Puerto Rico’s economy is in a death spiral

For the past 3-4 months Yahoo has been trying to get this message across. They have multiple news stories about Puerto Rico.

Best stay away from bankrupt entities. They are irresponsible. If you gotta go there tell 'em you are visiting Borinquen rather than Puerto Rico. Or if you want to visit the Spanish colony Porto Rico is your best bet.

Names change when the entity chooses to modify something basic.

[burningleg]

Puerto Rico: No money available to make $58M bond payment

SAN JUAN, Puerto Rico (AP) — Puerto Rico's government said Friday it would not make a $58 million bond payment due on the weekend and warned that the general fund will run out of liquidity by November if no action is taken.

Gubernatorial Chief of Staff Victor Suarez said at a news conference that the island's Public Finance Corporation could not meet the payment due Saturday.

"We don't have the money," he said, adding that the government still hopes to reach an agreement with creditors on renegotiating its debts.

Gov. Alejandro Garcia Padilla warned several weeks ago that the government and state agencies cannot repay the $72 billion in public debt that hangs over the U.S. territory, which is struggling with a nearly decade-long economic slump.

Puerto Rican officials contend that failure to make Saturday's payment will not constitute a default because it involves moral obligation bonds, which means there is no legal requirement to repay them.

But economists reject that argument.

"It is a default no matter how they try to disguise it," said Sergio Marxuach, policy director at the Center for the New Economy, a Puerto Rico-based think tank.

Marxuach and other economists said bondholders could file a lawsuit as soon as next week as a result of the nonpayment, which they said would be the first default in the history of the U.S. territory.

Justice Secretary Cesar Miranda said his department has been preparing for such a scenario. "Obviously we have been anticipating lawsuits," he said.

U.S. open-end bond mutual funds together own more than $11.4 billion of Puerto Rico bonds, or just over 15 percent of its outstanding debt, according to a Morningstar report. Hedge funds hold roughly one-third of Puerto Rico's debt. But experts have said they don't expect Puerto Rico's problems to have a spillover effect on the broader municipal market.

Ben Eiler, a U.S. bond trader who lives in Puerto Rico, owns bonds held by the Public Financing Corporation but said he was not surprised by the government's actions.

"Everyone in the world believes they're going to default," he said in a phone interview. "I anticipated that."

Eiler said he expects the bond's price to rise after a restructuring is worked out.

A group formed by the government to initiate debt renegotiation discussions and submit a five-year fiscal reform plan by Aug. 30 has been meeting regularly, Suarez said. He said that so far, they have studied 59 proposals to boost Puerto Rico's economy, including welfare and labor reforms and public-private partnerships.

Suarez said the group also received information about the general fund's liquidity.

"If we don't take any action, we'll be in the red by November," he said.

Puerto Rico's Government Development Bank, which oversees the island's debt transactions, also is struggling with liquidity. However, bank president Melba Acosta said in a statement that the institution would meet a $169 million bond payment due Friday.

Garcia's administration has pushed for the right for Puerto Rico's public agencies to file for bankruptcy under Chapter 9, but the proposal has not drawn any Republican co-sponsors in the U.S. Congress. The White House has said that no federal bailout is planned.

http://apnews.myway.com/article/20150801/cb--puerto_rico-economy-8f09ed6f52.html

[singular_me]

Almost 2 years later



‘Breaking point’: Puerto Rico files for historic $70 billion bankruptcy
4 May 2017 GMT

The Commonwealth of Puerto Rico is seeking the largest municipal bankruptcy filing in US history, after failed negotiations with creditors over its $70 billion debt crisis. That’s more than four times the debt Detroit collapsed under.

On Wednesday, the Financial Oversight and Management Board for Puerto Rico announced they had moved to place the US territory into federal bankruptcy court, making it the largest entity of the US government to seek refuge from creditors in the courts in history.

Chairman of the Oversight Board José Carrión said the filing was made to “provide a method for the Commonwealth and its instrumentalities to achieve fiscal responsibility and access to the capital markets,” according to a press release.’

https://www.rt.com/usa/387052-puerto-rico-bankruptcy-promesa/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome

[crimethink]

The racial angle is unmentioned.

How is an island paradise like Puerto Rico (could be) unable to be filthy rich, like tiny Singapore?

[singular_me]

and of course it turns out that the numbers are worse than thought

=================================

‘Puerto Rico’s bankruptcy process has spread to the territory’s pension system and highway authority, bringing the amount involved to over $120 billion and far exceeding the previous municipal bankruptcy record.

The Employees Retirement System (ERS) and the Highways and Transportation Authority (HTA) were added to the proceedings already involving the territory’s government and the island’s sales tax financing corporation (COFINA).

Puerto Rico and its agencies are roughly $74 billion in debt. While there are conflicting estimates about the gap between the ERS assets and promises, Puerto Rico officials estimated the pension fund’s unfunded liabilities at around $45 billion, with another $3 billion owed to bond-holders. The highway agency is another $6.3 billion in debt, $1.8 billion of which is owed to Puerto Rico’s industrial development bank which is itself insolvent.’

Read more: Roads & pensions swept up in Puerto Rico’s $123bn bankruptcy
https://www.rt.com/usa/389259-puerto-rico-bankruptcy-pensions-roads/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome

[palani]

far exceeding the previous municipal bankruptcy record.

But .... I still don't know what a dollar is.