Will PR default and become Our Greece?

[Averageman]

http://www.foxnews.com/politics/2015/06/28/puerto-rico-governor-warning-that-public-debt-unpayable/

Puerto Rico's governor recently confirmed that he had considered having his government seek permission from the U.S. Congress to declare bankruptcy amid a nearly decade-long economic slump. His administration is currently pushing for the right for Puerto Rico's public agencies to file for bankruptcy under Chapter 9. Neither the agencies nor the island's government can file for bankruptcy under current U.S. rules.
Puerto Rico's public agencies owe a large portion of the debt, with the power company alone owing some $9 billion. The company is facing a restructuring as the government continues to negotiate with creditors as the deadline for a roughly $400 million payment nears.

[Averageman]

http://www.dailyfinance.com/2015/06/29/market-wrap-stocks-tumble-greek-debt-crisis-woes-worsen/

U.S. stocks fell sharply Monday in heavy trading, and the S&P 500 and the Dow had their worst day since October after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the eurozone.
The European Central Bank froze funding to Greek banks, forcing Athens to shut banks for a week to keep them from collapsing.
And Greece appeared to confirm it was heading for a default after a government official said the country wouldn't pay a 1.6 billon euro loan installment due Tuesday to the International Monetary Fund.

[Eurodriver]

What amuses me about PR is that their "decade-long economic slump" began exactly (https://en.wikipedia.org/wiki/Roosevelt_Roads_Naval_Station) with their "victory" of kicking the US Military off of the island.

Living in a tourist area, I know not to bite the hand that feeds me no matter how obnoxiously slow they drive, how fat their women are, how they run across the street without bothering to check for traffic, or how ridiculous they look while they soak themselves in sunscreen and wear stupid hats at the beach.

It's unfortunate that an entire population couldn't grasp that same concept.

[docsherm]

I thought that Greece was the EUs PR .......

[Moose-Knuckle]

Got to love fractional reserve banking and Fabian socialism.

[Averageman]

And now for a completely different view from the Huffington Post,
http://www.huffingtonpost.com/joseph-e-stiglitz/europes-attack-greek-democracy_b_7692156.html?utm_hp_ref=world&ir=WorldPost
And, sure enough, what we are seeing now, 16 years after the eurozone institutionalized those relationships, is the antithesis of democracy: Many European leaders want to see the end of Prime Minister Alexis Tsipras's leftist government. After all, it is extremely inconvenient to have in Greece a government that is so opposed to the types of policies that have done so much to increase inequality in so many advanced countries, and that is so committed to curbing the unbridled power of wealth. They seem to believe that they can eventually bring down the Greek government by bullying it into accepting an agreement that contravenes its mandate.

It is hard to advise Greeks how to vote on July 5. Neither alternative -- approval or rejection of the troika's terms -- will be easy, and both carry huge risks. A yes vote would mean depression almost without end. Perhaps a depleted country -- one that has sold off all of its assets, and whose bright young people have emigrated -- might finally get debt forgiveness; perhaps, having shriveled into a middle-income economy, Greece might finally be able to get assistance from the World Bank. All of this might happen in the next decade, or perhaps in the decade after that.

By contrast, a no vote would at least open the possibility that Greece, with its strong democratic tradition, might grasp its destiny in its own hands.

[Business_Casual]

Guys, this is called positioning. If you owe a bunch of money and can't meet the terms of the loans, you try to renegotiate. The first thing you do is stake out a position - for instance "if you don't give me what I want I will go bankrupt and you'll get nothing!" Half a loaf, the theory goes, is better than no loaf. Unfortunately for the brain trust in PR, bankruptcy is not an option. A Federal bail out is more likely, so again, positioning. Get your creditors to call their lobbyists in DC and push for a bail out...

Ps - the people predicting disaster if Greece leaves the Euro are the ECB and Brussels Eurocrats. If Greece is in such bad shape, how can its tiny contribution to the union be so calamitous? It can't...

Simple, really.

[Alpha-17]

And now for a completely different view from the Huffington Post,
http://www.huffingtonpost.com/joseph-e-stiglitz/europes-attack-greek-democracy_b_7692156.html?utm_hp_ref=world&ir=WorldPost
And, sure enough, what we are seeing now, 16 years after the eurozone institutionalized those relationships, is the antithesis of democracy: Many European leaders want to see the end of Prime Minister Alexis Tsipras's leftist government. After all, it is extremely inconvenient to have in Greece a government that is so opposed to the types of policies that have done so much to increase inequality in so many advanced countries, and that is so committed to curbing the unbridled power of wealth. They seem to believe that they can eventually bring down the Greek government by bullying it into accepting an agreement that contravenes its mandate.

It is hard to advise Greeks how to vote on July 5. Neither alternative -- approval or rejection of the troika's terms -- will be easy, and both carry huge risks. A yes vote would mean depression almost without end. Perhaps a depleted country -- one that has sold off all of its assets, and whose bright young people have emigrated -- might finally get debt forgiveness; perhaps, having shriveled into a middle-income economy, Greece might finally be able to get assistance from the World Bank. All of this might happen in the next decade, or perhaps in the decade after that.

By contrast, a no vote would at least open the possibility that Greece, with its strong democratic tradition, might grasp its destiny in its own hands.

Yeah, score for international poor people! Blow all the money other countries give you, that'll teach 'em to share their wealth! (End Sarcasm)

The Huff Post seriously needs to come back to Earth once and a while.

[Outlander Systems]

Got to love fractional reserve banking and Fabian socialism.

Socialism is great...until you run out of someone else's money to spend....womp waaaaaaaah.

[Averageman]

Socialism is great...until you run out of someone else's money to spend....womp waaaaaaaah.

I used to visit Spain quiet often when I lived in Germany. I was always amazed that everyone over 50 was already retired and had free healthcare and a great pension, it would seem Greece was the same way.
Great place to visit, but I wouldn't want to.......

[Ick]

In my opinion PR's slump began at the nexus of an unfavorable change in tax law (§936, happened in 2006) coupled with an expanding union mindset increasing labor cost. Pharma mfg exited the island ASAP.

...add that to an ever expanding PR government... and it spells disaster.

http://www.caribbeanbusinesspr.com/cbdirectory/cb_manufacturing.php?cat_id=11

A VAT has been proposed now and in the past. It doesn't matter. A VAT tax wouldn't have fixed the problem anyhow.

Their "last chance" was to follow the path laid out by Fortuño... but alas, the people would not do what was necessary to avoid disaster and the ousted the last man that had a small possibility of rescuing the island. In fact his successor RAN on a platform of "rehiring the 30,000 workers let go by Fortuño"... even though there was no real work for them to do. The people bought in to it. It was unreal.

Oh, and by the way. They had to have the US military exit the island, otherwise it might have tipped over like Guam. Closure of the base had little to do with the decline. There were other stronger forces that allowed the problems to bloom, the tax law change chief among the causes.