Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Chapter 9’

… 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 — 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 ..

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… The Banks may Not Like It [#Puerto Rico][#debt][#bankruptcy][#default]…

Posted by paulfromwloh on Saturday,January 7th,2017

.. the banks are really going to hate this . But , it will teach them an important lesson about loans and U.S. governments , in particular the states . They will have to book their losses , and quit whining ..

.. Puerto Rico is going to have to be realistic . Their government is far too big . Their debt load is far too large for them to manage properly . also , their scope of their government and services is waaay too broad . Simple , the commonwealth cannot afford the current size of government . Things will have to change ..

.. [h/t — Newsmax.com/Finance]..
.. [link] to the news story ..

.. now , will our Congress create a Chapter 9 style bankruptcy system for the states . Some of them are eventually going to need it .. [read : Illinois] ..

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