Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Chapter 11’

… Puerto Rico needs a Financial Restructuring [#Chapter 9]…

Posted by paulfromwloh on Wednesday,January 18th,2017

.. or , the rough equivalent of a Chapter 11 bankruptcy reorganization ..

.. yes , the public sector bondholders are going to take a serious ” haircut . ” But doing so will also teach them an important lesson . The US Government ‘ s Treasury is not a bottomless pit , where states and other entities can go for a bailout when the need suits them …

.. [h/t —]..
.. [link] to the blog post …

.. that way , once Puerto Rico emerges from its restructuring , it will have to pay a much higher price for its financial folly . In that way , it will do so just like any business that goes through a Chapter 11 bankruptcy reorganization plan . public entities are different , though ..

.. you cannot breakup a state , county , or local government . You have to live with what is there . The near – term financial future for that reorganized entity will be tough . But it will have learned a very hard set of lessons ..


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… Greece needs a U.S. – style Chapter 11 restructuring [#bankruptcy]…

Posted by paulfromwloh on Thursday,December 24th,2015

.. it is that simple ..

.. Greece got itself into one hell of a pickle . It needs to get out of it . But piling on debt on top of more debt is not going to do it ..

.. economic stricnyne from the I.M.F. will not work . What the I.M.F. usually insists upon is austerity , always austerity . It means budget cuts , but also major tax increases . It almost never asks for economic restructuring from the target country . Which figures ..

.. [h/t —]..
.. [link] to the blog post ..

.. the debt has to be written down . It is that simple . There is no other way around it , folks . Piling more debt on top of debt will not do it ..

.. Greece will need to undergo extensive economic reforms . The way that things are going now , Greece will undergo a very slow and painful economic death . Which is obviously something that they do not want . But they will have to do something about it ..

.. also , there will have to be asset sales . Greece cannot avoid it . There is waaay too much state involvement in the economy . It is strangling Greece , economically > Also , it is killing Gree in terms of its tax revenue …

.. whether Gree remains in the Euro is up to them . They know what they need to do .They just need to do it …

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