It is unfortunate for Puerto Rico that Puerto Rico could not borrow money to do what the “vulture” hedge funds did — buy their debt cheap. They could then write off their debt and over time pay off the far more manageable loan that they got to buy their bad debt at a discount. It seems to me that there should be opportunity for them to do so.
If I ran the world (and it is a good thing that I don’t) then when a “vulture” hedge fund bought a debt the amount that they could collect would be limited to what they paid for the debt plus a small percentage for profit, say maybe 10 to 20%. If the “vulture” fund is to make a profit then they would need to negotiate an agreement with the debtor before buying the debt. The market would then be involved in deciding the true value of the debt based on what the debtor could reasonably pay, and the debtor would not be hounded in perpetuity for the full amount plus interest by opportunist vultures who buy the opportunity to do so for pennies on the dollar.
It sure is nice seeing someone acting in a responsible manner.
Sounds like a good idea and it will showcase Puerto Rico as a clean energy model complete with all the green jobs it will create. This will, of course be the exact opposite in fact a veritable nightmare for the Koch Brothers-Trump lovers of dirty, non renewables and they will oppose it. Let’s back Puerto Rico with our vocal support.Go Puerto Rico!
Senator Sanders is legally correct that Puerto Rico does not owe one cent to the vultures.
Spain attempted to collect the debts of Cuba and Puerto Rico when the United States invaded and colonized them after they fought for and won their independence from Spain.
US courts ruled that debts of colonies cannot be collected on because corrupt colonial masters lent money to the colonies for purchases from crony capitalists who sold things the colony neither needed or wanted…
I heard too much “to grow” this or that. Overpopulation and fossil fuel use are problems in PR and most everywhere.
Love, Love, Love Senator Sanders!
And the evil emperor and his entire WH staff including the corrupt cabinet refuse to present any such program to benefit the victims of Maria in PR and VI…they are predominantly brown-skinned and don’t talk like 'merricuns. after all. Their lack of care and compassion is mirrored (and parroted) in the cruel faces of the GOP House and Senate members bent on punishing all but the wealthiest U S citizens and corporations with their draconian “tax cut” legislation burgeoning with riders that are outright inhumane. Quintessential work of the devil!
Most Puertoricans are “Republicanos”, Statehooders. They will be sorely disappointed when they find that “Republicanos” there are not “Republicans” here looking after their interests.
This is what regulations are supposed to do, force strict guidelines for buying and paying off debt. Without strict guidelines the debtor is in a hopeless situation. This is closely akin to the vampire predatory loan sharks, payday and car title loans, there one pays forever and the principle just sits earning interest. This is what neo-liberal,(No regulations, trickle down) economics is all about, maximum extraction and exploitation.
I remember many of the promises that were made about how good it would be for all of us after the neo-liberal reforms were made, one result of the reforms was to be good government (government Regan explained to us was the problem).
Can neo-liberalism be defined as “(no regulations) economics”? It seems that the neo-liberals very much favor regulations and strict guidelines for debtors and for those of us on the bottom of the pyramid as they don’t want the foundation to shift and thus shake those in comfort at the top. Mostly the regulations have been privatized and it is the corporations (with the aid of the courts and state) who arbitrarily choose and adjust the regulations and enforce them on us and use them to get their agendas past us.
A good government would take this timely opportunity to rebuild the power grid of these sunny islands to primarily use solar energy. A good government would promote stability, security, equality, democracy and freedom; and would considerably constrain corruption.
— Democracy — Freedom — Good Government — its not too much to expect, nor is it beyond our reach, but the peddlers of neo-liberalism work at convincing us to forget about these aspirations and concepts that are not beyond our grasp.
I would like to see the reasons for Puerto Rico not being a state addressed. It is just votes, or it is something else? I have always heard that every chemical company in the US has a major plant in PR because of its immunity from EPA rules,. Along with energy, I advocate green factories. Enough of polluting the air and the precious ocean waters.
Bernies all we have.
Bernie is all about smart homes, smart grid, and 5G. Imposing these systems of control on Puerto Rico is the “problem-reaction-solution” tactic on desperate people who are not given a choice. Do your research - these are malevolent enterprises. Bernie is not what he seems. Neither is "Puerto Rico/Houston/Sonoma/Boston/Las Vegas/…“Insert-Terrorized-Place Strong.”
US colonies are not availed choices neither now nor in the past.
Be careful what you wish for …
Vulture funds are so called because the specialize in the debt of dead-beat borrowers. They are well aware that the debtor might default and that they might receive pennies on the dollar. That is fine so long as it is > than what they had paid for buy the bonds from others. And the others sold because they didn’t want to go through the fight to get what they were owed.
It can be popular for a politician like Sen. Elizabeth Warren to demand repudiation of debt owed to vulture funds or foreign creditors. I can sympathize with the sentiment, but if Puerto Rico or whoever actually did it then there would be contagion. Lenders would look harder and be less willing to lend anything to bad credit risks. The fear of contagion is why states like Illinois opposed the PROMESA Act more than a year ago.
So, Puerto Rico, do you want or need to borrow money from anywhere off the island sometime in the next forty years? Can you meet your investing or rebuilding needs just from money raised on the island?; money raised here and now. How is your tax base, Puerto Rico?
I am reminded of a complaint Daniel Ortega made in the 1980s. He complained that Big Lenders were more willing to lend to rich Hollywood CA than to Nicaragua. Well, yes, Daniel. Rich Hollywood is a better credit risk to pay back the loan than Nicaragua was. Loans aren’t made on the basis of need; they are made on the ability to pay them back.
Sanders and Warren should be examples to the greed-driven politicians trying to “run” our country. The idea that leaders should serve their constituencies rather than siphon resources for personal enrichment was one of the founding principles of democracy. But we’re drifting back into a system where those with power simply appropriate all the resources they can get their hands on. Are we already there? Can we reverse the trend politically, or will it take a total collapse?
I know little about Puerto Rican politics, but I do wonder if the island would be better off as a state, especially given Sanders’s proposal. Do you or anyone else have an informed opinion?
Here is a link that pretty well covers PR statehood:
Interesting, thanks. Learned something new. Sounds like they are looking for a larger popular vote and more interest from Congress.