Puerto Rico defaulted

[juliedavis91849]

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...

Gottlieb

[wglassfo]

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??

[wrightcattle]

you worry 2 much.

70b amongst central banks now is mere "dust."

[juliedavis91849]

  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

[juliedavis91849]

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...

Headless hedgies...

[Wolfcat9]

I heard that since PR is a US territory, they CANNOT default on their debt.  I would guess that their Uncle Sam will end up bailing them out.

[sw363535]

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...

http://www.fa-mag.com/news/puerto-rico-and-beyond--an-analysis-of-the-municipal-debt-of-u-s--territo...

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