Puerto Rico defaulted
ja, a McDebt size storm is brewing and financial obligations are coming home to roost---Puerto Rico say its $70 billion US dollars
can not be repaid...
This was accessed from the muni bond market where Detroit had already defaulted..
Look for more volatility and chaos..A Russian Roulette/musical chairs "period" is occuring, ja...
Re: Puerto Rico just defaulted
I certainly don't pretend to understand financial markets
Does this look like maybe the thinking goes this way
If you can default, then we might as well also
All that debt suddenly became free money
Everybody knows the big countries have been doing this very same thing for yrs
They just call it new debt for old but the debt is never paid and never will be
Even the int on the debt is borrowed money
I see the USD is up tonite
Is that not like the emperor with no clothes??
Re: Just one big McPonzi pyramid monetary system..PERIOD
No "bankruptcy" declaration exists for a commonwealth...
Some of PR's debt is held by individuals via mutual funds, ja..
Doubt they even know it, yet...So, Puerto Rico is taking the "Greek Path"..
And, the Greek banks and their stock markets are closed tomorrow-
Grain bulls will be keeping an eye on the Alpha-pigs panic...
over and out
Re: MWright, it's the hedge investors "Mega-worry"
You can bet your last buck the "hedgies" are burning up email, phone lines, faxes, and twitter trying to lobby their way out of this mess, ja...
Re: Puerto Rico defaulted
If major cities can take bankruptcy so can PR--(not sure either can). But the financial requirements for a state are not there for a territory, so I doubt the US government is obligated to very much support...
This does not come out and say so, I am led to believe the US is not actually obligated to back the debt...
See what you think