The Problem with Puerto Rico

What an interesting time to spring a thing like this on us -- with the problems of Greece and the concern it’s causing the rest of the world -- now Puerto Rico? Democratic Governor Alejandro Garcia Padilla has calmly announced that Puerto Rico’s staggering debt of $72 billion (USD) is simply “not payable.” While the island’s economy is in recession, the unemployment rate is hovering around the 12% mark, water has been rationed, and financial institutions have rightly refused to lend any more cash to its profligate government, Puerto Rico is increasingly looking more and more like Greece. It would seem that the United States is now being tested much in the same way the European Union is being tested across the Atlantic. And with a predominantly Republican Congress offset by a Democratic president, this spells trouble on the road ahead. Even if the U.S. does have bankruptcy laws, much of Congress is going to be opposed to using them in this case....(Read Full Article)