Puerto Rico's top finance officials said the government of the US territory will most likely shut down in three months because of a looming liquidity crisis, and they warned of a devastating impact on the island's economy.
In a letter to leading lawmakers, including Gov. Alejandro Padilla, the officials said a financing deal that could potentially salvage the government's finances looked unlikely to succeed. It warned of laying off government employees and reducing public services.
"A government shutdown is very probable in the next three months due to the absence of liquidity to operate," the officials said. "The likelihood of completing a market transaction to finance the government's operations and keep the government open is currently remote."
Do you really think that? I think a wave of muni defaults (or rate hikes) would be really interesting.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
Do you really think that? I think a wave of muni defaults (or rate hikes) would be really interesting.
The new republican governor [Bruce Rauner] has some good ideas to fix things, but the democrats have a super-majority in both houses of the legislature, so very little is likely to get done. I hope I am wrong.
Hmmm. Let me guess... his plan includes Tax Cuts!!
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
Illinois is fucked. Existing obligations cannot be cut due to the strength of the constitutional protection afforded them, and there are a ton of existing obligations. The pension debacle can only be solved by raising taxes at this point (and actually putting the money toward the pensions, but that's another issue...).
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
- CEO Nwabudike Morgan
