Mulvaney waves off Puerto Rico bailout talk after Trump hints at erasing politicians’ debts

Source: Bloomberg

“President Donald Trump’s budget chief said not to take the president’s suggestion that Puerto Rico’s debt would be ‘wiped out’ literally, as the territory’s bonds plunged to a record low on Wednesday. A benchmark general obligation bond due in 2035 plunged to a record low of 32 cents on the dollar Wednesday morning from 44 cents the previous day after the president’s remarks. ‘I think what you heard the president say is that Puerto Rico is going to have to figure out a way to solve its debt problem,’ Mick Mulvaney, director of the White House budget office, said in an interview Wednesday. ‘We are not going to bail them out. We are not going to pay off those debts. We are not going to bail out those bond holders.'” (10/04/17)