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 — Newsmax.com]..
.. [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 ..
Posted in personal opinion | Tagged: Chapter 11, Chapter 9, finance, financial reorganization, public debt, public finance | Leave a Comment »
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 — Newsmax.com]..
.. [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 …
Posted in personal opinion | Tagged: asset sales, Bankruptcy, Chapter 11, Chapter 13, economic reform, economic restructuring, Greece, restructuring | Leave a Comment »