.. 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 …
.. 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 ..