Another bankrupt government. This one a little closer to home. https://www.nytimes.com/2017/05/06/us/puerto-rico-insolvency-business-owners-anxiety.html?partner=rss&emc=rss
Another government borrowed money that they really had no chance of paying back. And the population went along with it. Now the chickens are coming home to roost.
Faced with a $123 billion debt it cannot pay, Puerto Rico filed for a kind of bankruptcy protection on Wednesday, a move that sent shivers down the spines of everyone from bond holders fearful of staggering losses to street sweepers and public employees whose already meager paychecks are likely to dwindle.
The story – being in the New York Times – paints how bad everyone has it because of the eeeevil bankers. Or something. There is only limited discussion of the way the island ended up in these straights. For example, when the current governor, Gov. Ricardo A. Rosselló, took office, it wasn’t clear how much debt there was.
When he took office, Mr. Rosselló said his first task was to determine “how deep the rabbit hole went.” He expected a $3 billion deficit, and instead found a deficit of $7.5 billion
That is a pretty glaring lack of information.