Puerto Rico bankruptcy storm heading for mainland America

Source: Heartland Institute
by Jesse Hathaway

“The Financial Oversight and Management Board for Puerto Rico, a federal board tasked with managing the island commonwealth’s course out of fiscal emergency, declared failure on May 3, filing paperwork to begin court proceedings restructuring the government debt. Territory government agencies, such as the Puerto Rico Electric Power Authority, are likely to follow the government into bankruptcy court, leaving investors to potentially lose as much as 65 percent of their original investments. In 2015, Puerto Rico Gov. García Padilla warned of an impending ‘death spiral’ if territory lawmakers did not make pro-growth reforms. They did not, and Padilla’s warning has come to pass. Puerto Rico is circling the drain, financially speaking, but it’s not too late for mainland lawmakers to learn from the island’s mistakes.” (06/12/17)

http://blog.heartland.org/2017/06/puerto-rico-bankruptcy-storm-heading-for-mainland-america/