Informative Links for July 2, 2015

Article posted on July 2nd, 2015 by WhatAmIMissingHere

Puerto Rico Poses Bigger Threat to U.S. Investors than Greece – MarketWatch  …  “As U.S. investors have been panicking over a potential Greek collapse, Puerto Rico’s governor Sunday announced that the small U.S. territory cannot pay its roughly $72 billion in debt. Less than 24 hours later, Gov. Alejandro Garcia Padilla proposed a plan to seek a restructuring of the island’s debt, suggesting that the island is virtually insolvent. …The report concluded that the U.S. commonwealth has lost the ability to fund itself through public debt markets, while pointing to what the authors described as “a decade of stagnation, outmigration and debt.”

“But the problem is that, as per the U.S. constitution, Puerto Rico cannot file for Chapter 9 bankruptcy, like Detroit did, and neither can its public corporations and local agencies, Soto-Santoni added. So the governor is basically seeking a negotiated agreement with bondholders for a postponement of payments on the debt for a number of years. But U.S. investors would actually have much more to lose in a potential Puerto Rican default than in a Greek default. The reason is that Puerto Rico’s bonds are trading in the U.S. municipal bond market, while the vast majority of Greek debt is in the hands of the International Monetary Fund, the European Central Bank and eurozone countries.”

Obama Cuba Move Part of His ‘Legacy-Building Bucket List’ – Newsmax  …  “Two top Florida members of the U.S. House of Representatives Tuesday slammed plans by President Barack Obama and Cuban President Raul Castro to announce the re-opening of embassies in Washington and Havana for the first time in 54 years. ‘The re-designation of our diplomatic facility in Havana as an embassy means President Obama can check off another item on his personal ‘legacy-building’ bucket list‎,’ charged Rep. Carlos Curbelo. ‘It will not further our national interests and recklessly confers legitimacy ‎on an absolutely illegitimate military dictatorship.'”

“‘Our country deserves a foreign policy that puts America first and that rewards our allies — not dictators responsible for the death of American citizens and for the theft of American property,’ Curbelo said. Since Obama’s announcement of normalizing relations with Havana, “the State Department has failed to forcibly condemn the increase of repression on the island now that the Castro regime feels emboldened to continue its attacks against the Cuban people,” she said.”

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