{"id":9628,"date":"2015-07-02T06:24:36","date_gmt":"2015-07-02T11:24:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9628"},"modified":"2015-07-02T06:24:36","modified_gmt":"2015-07-02T11:24:36","slug":"why-the-puerto-rico-debt-crisis-is-such-a-huge-threat-to-the-u-s-financial-system","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9628","title":{"rendered":"Why The Puerto Rico Debt Crisis Is Such A Huge Threat To The U.S. Financial System"},"content":{"rendered":"

Why The Puerto Rico Debt Crisis Is Such A Huge Threat To The U.S. Financial System<\/a><\/h3>\n

\"Puerto<\/a>The debt crisis in Puerto Rico could potentially cost financial institutions in the United States tens of billions of dollars in losses.\u00a0 This week, Puerto Rico Governor Alejandro Garcia Padilla publicly announced that Puerto Rico\u2019s\u00a0 73 billion dollar debt is \u201cnot payable,\u201d and a special adviser that was recently appointed to help straighten out the island\u2019s finances said that it is \u201cinsolvent<\/a>\u201d and will totally run out of cash very shortly.\u00a0 At this point, Puerto Rico\u2019s debt is approximately 15 times larger than the per capita median debt of the 50 U.S. states.\u00a0 Yes, the Greek debt crisis is larger, as Greece currently owes about $350 billion to the rest of the planet.\u00a0 But only about\u00a0$14 billion<\/a>\u00a0of that total is owed to U.S. financial institutions.\u00a0 But with Puerto Rico, things are very different.\u00a0 Just about the entire 73 billion dollar debt is owed to U.S. financial institutions, and this could potentially cause massive problems for some extremely leveraged Wall Street firms.<\/p>\n

There is a reason why Puerto Rico is called \u201cAmerica\u2019s Greece\u201d.\u00a0 In Puerto Rico today, more than 40 percent of the population is living in poverty, the unemployment rate is over 12 percent, and the economy of the small island nation has continually been in recession since 2006.<\/p>\n

Yet all this time Puerto Rico has continued to pile up even more debt.\u00a0 Finally, it has gotten to the point where all of this debt\u00a0is simply unpayable<\/a>\u2026<\/div>\n

Steven Rhodes, the retired U.S. bankruptcy judge who oversaw Detroit\u2019s historic bankruptcy and has now been retained by Puerto Rico to help solve its problems, gave a blunt assessment on Monday.<\/p>\n

Puerto Rico \u201curgently needs our help,\u201d Rhodes said. \u201cIt can no longer pay its debts, it will soon run out of cash to operate, its residents and businesses will suffer<\/strong>,\u201d he added.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Why The Puerto Rico Debt Crisis Is Such A Huge Threat To The U.S. Financial System The debt crisis in Puerto Rico could potentially cost financial institutions in the United States tens of billions of dollars in losses.\u00a0 This week, Puerto Rico Governor Alejandro Garcia Padilla publicly announced that Puerto Rico\u2019s\u00a0 73 billion dollar debt […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1035,195,4106,6897,6898,3461,6899,2139,6061,314,6900,6901,6902,3824,6903,6904,6905,6906,6907,860,6908],"class_list":["post-9628","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cash","tag-debt","tag-debt-crisis","tag-debt-crisis-in-puerto-rico","tag-debt-not-payable","tag-debts","tag-extremely-leveraged","tag-finances","tag-financial","tag-financial-institutions","tag-financial-institutions-in-the-united-states","tag-leveraged","tag-not-payable","tag-puerto-rico","tag-puerto-rico-debt-crisis","tag-puerto-ricos-debt","tag-run-out-of-cash","tag-u-s-financial-institutions","tag-u-s-financial-system","tag-wall-street","tag-wall-street-firms"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9628"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9628\/revisions"}],"predecessor-version":[{"id":9629,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9628\/revisions\/9629"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}