at least he's not saying the American taxpayer will be footing the bill... until the banks write off these yugh losses that is
Posted on 10/03/2017 7:30:31 PM PDT by 2ndDivisionVet
In an interview with Fox News, President Donald Trump said that Puerto Rico's debt will have to wiped out.
"They owe a lot of money to your friends on Wall Street and we're going to have to wipe that out. You're going to say goodbye to that, I don't know if it's Goldman Sachs but whoever it is you can wave goodbye to that," Trump said on Tuesday in an interview with Fox News, according to a Reuters report.
Trump visited the island on Tuesday, two weeks after Maria destroyed Puerto Rico's entire infrastructure system, leaving nearly 3.5 million residents without power, and tens of thousands without clean water.
The official death toll more than doubled to 34, a spokesman for Governor Ricardo Rosello said on Tuesday, Reuters reported.
Even before the storm brought Puerto Rico to a near standstill, the government there already struggled with an economy in shambles and a default on billions of dollars of public debt.
Today, the U.S. territory has nearly $70 billion in debt, an unemployment rate 2.5 times the U.S. average, a 45 percent poverty rate, nearly insolvent pension systems and a chronically underfunded Medicaid insurance program for the poor.....
(Excerpt) Read more at cnbc.com ...
at least he's not saying the American taxpayer will be footing the bill... until the banks write off these yugh losses that is
“The is an old Chinese saying. ‘In the end, all debts are paid. If not by the debtor, then by the creditor.’
Math always wins.
Always.
L
Well if the alternative is to have PR be in such a state that everyone in the Island has no choice but to move to the US, then it should be considered.
Next time the companies should be smarter as to who they loan their money to.
If they do it for PUERTO RICO, they will have to do it for ILLINOIS,CALIFORNIA, NEW YORK, and every other blue state. Don’t go there, PRESIDENT TRUMP.
That means the lenders get wiped ouit not the American taxpayers. He actually said “Goldman Sachs”!! He aint payin. The wall street gang thought we would bail them out. To hell with them. Go TRUMP!!
They should not have been extended all that debt. I think major investment in PR should be private.
Yes we need to cut them loose. We can grant them their independence, and we need to.
For years they did not want statehood and would laugh when it came up for vote. After they bankrupted their country and corruption took over they have been voting in favor of statehood. They want us to bail them out and then pay for their goodies from now on. Nope, I say no way.
Yeah, 3.5 million socialist minded people are enough to turn several red states blue. I guess we are going to have to bit the bullet and fork over the money to rebuild PR.
Exactly. We will wing up paying for it
If done right, PR can be the jewel of the Caribbean, there’s no excuse for them not to be.
I’m afraid Donald Trump sees bankruptcies as no big deal.
Turn it into a big 1800 hole golf course resort. Will be very profitable.
No. It’s their choice and congress, iirc.
To pay interest and principal one needs to generate income.
Puerto Rico won’t be able to do that for some time.
They will never be able to pay it off anyhow.
Yeah we will wipe them off, but cut them lose too.
Bankruptcy has a sound business purpose. That’s why it has persisted since the time of the Old Testament. The point is that a fresh start for a hopeless debtor benefits even those banks whose debts are being erased. Simply, they are forced to recognize bad debt for what it truly is, and are then free to start lending all over again to a debt-free Puerto Rico in a better position to make payments on the new money. Watch, there is more money to be made here, and this is exactly what will happen.
Well, these firms lent to Puerto Rico knowing that the likelihood of being paid back was more and more unlikely with each passing year.
If there is a sort of ‘jubilee’...then Puerto Rico’s credit rating needs to be downgraded to worse than junk, so nobody will get any ideas about lending to them for the foreseeable future. That island will have to make due without credit.
As for the lenders? They will have to eat the debt. And they will absolutely deserve it, because they apparently didn’t care about PR’s ability (or willingness!) to repay.
Wasn’t that what the auto bailout was, except people that aren’t allowed to drive had to pitch in?
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