“Vulture Capitalists”? They bought the debt for pennies on the dollar and hoped to collect by reselling it or maybe even having the government make good on it.
They might be idiots but they are not, “Vultures”.
You borrow money, promising to pay it back... Then after taking someone elses money, and promising to pay it back, you decide to get a judge to say you can keep it...with no actual penalty..
In my world, I call that theft, dishonesty and downright dirtbag behavior.
Did they ever plan on paying it back? If not, that’s criminal fraud. Jail them...confiscate their property, sell off their assets and make damned sure they can never borrow money again.
I don’t care if some hedge fund ends up owning the whole place and tosses the people into the sea... That’s called paying your debts. It’s what honorable people do.
I have suffered under debt, and I paid off every dime, interest included. That taught me to never get into debt again.
Folks are borrowing for vacations (writ large the entire island of PR) then defaulting....If you can’t afford fillet mignon, you eat beans.....That’s reality.
I have always figured that bonds were a form of secured debt..ie, give me my money or get out of my building...
Then after Obama screwed over the GM bondholders, I realized that nothing is secure, so long as a government is empowered to intervene..