Category

Puerto Rico Debt

Washington

SCOTUS Leaves Puerto Rico's Fate to the Whims of Congress

The Supreme Court struck down Puerto Rico's plan to restructure $20 billion in debt yesterday, effectively handing the issue back to a very slowly moving Congress to handle before the island territory faces a whopping $2 billion payment on July 1…

The justices' decision might make Puerto Rico nervous considering the speed at which these government policymakers work.

But all hope is not lost. Yet...

Washington

The Puerto Rico Debt Crisis Explained

The Puerto Rico debt crisis has reached a point where only help from Washington can save it.

As Congress considers a bill to allow Puerto Rico to deal with its debt, Americans rightfully have a lot of questions about how and why this happened – and how it will affect them.

That's why we've put together this Q&A about the situation.

Here's the Puerto Rico debt crisis explained...

Bonds

How the Puerto Rico Debt Crisis Could Ruin Your Retirement

The Puerto Rico debt crisis is about to hit close to home for many U.S. investors.

Many pension and retirement funds loaded up on Puerto Rico debt to take advantage of the high yields and multiple tax exemptions.

Now it's clear Puerto Rico won't be able to pay back the $72 billion it owes, which means investors need to find out if they are in the line of fire.

These are the municipal bond funds with the most exposure to Puerto Rico...

Washington

Taxpayer Bailout Imminent If Congress Doesn't Save Puerto Rico… Now

A taxpayer bailout to keep Puerto Rico from drowning in its own debt is imminent unless Congress acts fast.

But there's one major "sticking point" keeping Congress in limbo.

Here's more on what needs to happen... right now...

Puerto Rico

Avoid Puerto Rico's Debt Crisis and Make Money on It – Here's How

Puerto Rico is desperately trying to reorganize its $72 billion debt, but it faces a unique hurdle…

You see, it's an unincorporated territory, not a state. It can't actually declare Chapter 9 bankruptcy.

Without those legal protections, the Caribbean island is clearly sunk.

What isn't so clear now is the risk to mainland investors. There will be losses either way, but it's too early to say how big they'll be and how hard they'll hit.  

Whatever happens there, we'll do well. The strategy I'm going to show you today offers protection and the potential for big profits as Puerto Rico's economy circles the drain...

Puerto Rico Debt

Puerto Rico Debt Crisis "a Cautionary Tale" for Misled U.S. Taxpayers

A Puerto Rico debt crisis of epic proportion is officially underway. The U.S. territory defaulted Aug. 3, handing over only 1% of the $58 million owed. It owes $72 billion in total — a debt load that's by far larger per capita than any of the 50 states.

But Puerto Rico's default is nothing compared to what's in store for American taxpayers – who have been misled by Washington into thinking the government's unfettered borrowing can go on forever…

"The Puerto Rico debt crisis should serve as a cautionary tale of how debt heaped upon debt, even to a U.S. Commonwealth, ultimately meets its reckoning," Money Morning Special Contributor Michael E. Lewitt told readers.

You see, the irresponsible fiscal promises that caused Puerto Rico's default are being perpetrated by U.S. federal, state, and local governments every single day.

Of course, it's taxpayers that will be left on the hook for the government's multi-billion-dollar mistakes...