With both houses passing the “Puerto Rico Oversight, Management, and Economic Stability Act” (PROMESA), its up to the President to sign the bill and he likely will. While PROMESA may be well-intended, it sends the wrong messages to both public officials, private markets and consumers. For more than a decade, the Commonwealth has covered its […]
This op-ed, published in The Hill’s Congress Blog, discusses legislation designed to allow Puerto Rico to shaft its investors in order to dig itself out of its spending spree. To read the piece, visit The Hill.
This op-ed discusses the attempt to bailout Puerto Rico’s massive debt. The bailout will likely push costs to bondholders and others, instead of taking steps to deal with the root cause — overspending. Who is holding Puerto Rico’s politicians responsible and what will prevent other states from trying to do the same? The article can be read […]
Illinois’ problems with government pension funds started with negotiated promises for excessive benefits. Some Illinois pensions run at $100,000 or more per year and half of employees retire with benefits before age 60. Those problems were inflamed by the state making smaller contributions than needed to support the benefit payouts. Instances of early retirements and […]
At the end of June 2015, Puerto Rico’s governor announced the Commonwealth was unable to repay the $72 billion in bonds and obligations it has amassed. The debt load owed by the 3.6 million Puerto Ricans is $20,000 per capita. In comparison, the current debt crisis in Greece is more severe at $28,475 in per […]