So, Moody's has downgraded Puerto Rico's bonds to just two steps above junk bonds and stopped *this* short of declaring the island officialy broke.
Net tax- supported debt as a percentage of personal income is 56.7 percent in Puerto Rico. In 2003, it was 51.2 percent. THE MEDIAN FOR THE STATES, is 2.4 percent.
This means that you are probably better off speculating on stocks than lending money to the government. It also means that to pay back the debt, every Puerto Rican would have to reach into their pockets and come up with almost $7,000. All the public works we do on our own two feet comes from the money of lenders. If we are downgraded we won't even appear in the basic bonds portfolio offerings at Wall Street and we will be dropped from the ones who already carry us. This means no more money for public works: no needed expansion for the urban train, an unfinished "Expreso", layoffs in the government payroll - the biggest employer in the island. What makes us "better" than other Latin American countries: this incredible American citizenship conceit that makes us believe that nothing can go wrong because Uncle Sam will always rescue our asses off. The funniest thing is that people on the street are not worried or do not understand that full fledged generalized poverty is knocking on our doors. Standard and Poor is preparing to publish their own very damaging report on the state of our economy.
As I always ask statehood supporters here in the island, what in hell do we have to offer the US to warm them up to the idea of making us part of the federation?
Joe Mysak's column at Bloomberg.com
Net tax- supported debt as a percentage of personal income is 56.7 percent in Puerto Rico. In 2003, it was 51.2 percent. THE MEDIAN FOR THE STATES, is 2.4 percent.
This means that you are probably better off speculating on stocks than lending money to the government. It also means that to pay back the debt, every Puerto Rican would have to reach into their pockets and come up with almost $7,000. All the public works we do on our own two feet comes from the money of lenders. If we are downgraded we won't even appear in the basic bonds portfolio offerings at Wall Street and we will be dropped from the ones who already carry us. This means no more money for public works: no needed expansion for the urban train, an unfinished "Expreso", layoffs in the government payroll - the biggest employer in the island. What makes us "better" than other Latin American countries: this incredible American citizenship conceit that makes us believe that nothing can go wrong because Uncle Sam will always rescue our asses off. The funniest thing is that people on the street are not worried or do not understand that full fledged generalized poverty is knocking on our doors. Standard and Poor is preparing to publish their own very damaging report on the state of our economy.
As I always ask statehood supporters here in the island, what in hell do we have to offer the US to warm them up to the idea of making us part of the federation?
Joe Mysak's column at Bloomberg.com