Amidst all the talks on the Greek debt crisis, Puerto Rican Governor Alejandro Garcia Padilla has revealed that the Commonwealth nation cannot pay its $72 billion debt and compromise would have to come from creditors. Puerto Rico has also been in recession for years. There have been structural problems, economic shocks and weak public finances which resulted to a decade of stagnation, outmigration and subsequently, debt. Here’s a link on the story: http://fortune.com/2015/06/29/puerto-rico-debt/
This really sucks for the people of Puerto Rico. It just sounds like a bunch of bad decisions that were made by the higher ups in the country.
Also, this is just a side note, the spell check said that I was spelling Puerto Rico wrong, whenever I am spelling it right. That would be nice to fix.
It's sad how in a country, the residents are the ones who suffer much from the wrong decisions and actions of the their government. It's the people who feel the hardships of an economy in debt more than the leaders, who despite having the stress of figuring out how to pay the debt still have comfortable lives and money in their banks as compared to the citizens who are sometimes forced to seek greener pastures in other countries.
Yep. We have Greece for strike one. Puerto Rico for strike two. I wonder which country will be strike three??? It is just a little bit frightening how these very tiny countries can have such a negative effect on Wall Street. I don't even dare look at my portfolio. Of course, I'm also kicking myself for buying high and not digging in my heels and buying when its low now.
Well for PR I think they could just default, declare bankruptcy and start fresh. Unfortunately for Greece they cannot do this, they are not just playing with their own future they are playing with the future of the European Union.
I guess that's the thing with Greece. Any move they make will deliberately affect their affinity with the European Union be it big or small. It's the main difference between these two countries which admittedly are in an economic crisis right now. Who knows, Puerto Rico might be able to solve their ongoing crisis faster than Greece with the help of their creditors.
I am shocked that there have not been revolts towards the government in both countries. That is generally what happens whenever the government lets down its' people. However, I think that this means that land and houses in these places will be cheaper soon, so I think that some people will move there.
I feel like it will be another European country. That is really just my gut feeling at this point. I looked at the stocks and it seemed like everything was down, so that really sucks overall.
I think that would be the best thing to do, but I do not really know where they would go after they declared bankruptcy. What is next after that?
