Creditors

As The Puerto Rico Lawsuits Begin "A Bankruptcy Is A When, Not An If"

On Tuesday Puerto Rico and its federal financial oversight board were flooded with the first lawsuits from stakeholders, with more expected in the coming days, which could ultimately push the insolvent U.S. territory into bankruptcy, and in fact prompting one analyst to conclude that "I continue to think bankruptcy is a when, not an if."

Frontrunning: May 2

  • Trump Gambles on Big Health Victory (WSJ)
  • Provocateur-in-Chief Trump Pokes His Own Party’s Power Centers (BBG)
  • White House Preparing to Replace Top Banking Regulator (WSJ)
  • Trump’s Trade Warrior Is the Most Unpopular Economist in the Class (BBG)
  • Erdogan says to discuss Syria operations with Russia's Putin, Trump (Reuters)

Italy's National Carrier Alitalia Files For Bankruptcy

As was widely expected, on Tuesday Italy's national carrier Alitalia filed for its second bankruptcy in 9 years, after its board decided to formally ask the ministry of economic development to put the money-losing carrier, the partly owned by UAE's Etihad Airlines, under special administration after workers rejected its latest rescue plan meant to unlock much-needed financing.

Global Stocks Hit All Time High As Fed Meeting Begins

With the Fed set to begin its latest 2-day meeting, S&P futures are little changed with European and Asian stocks higher after the VIX dropped to a 10 year low and the Nasdaq rose to record highs, sending the MSCI All-Country Index back to all time highs, as global markets reopen after holiday with investors focusing on stronger corporate earnings, while ignoring weaker than expected "hard" economic data and geopolitical concerns.

Peter Schiff: Damn The Deficits, Huge Tax Cuts Ahead!

For once, at least, this does not appear to be Trumpian braggadocio. It really may be the mother of all tax cuts. But if passed, what may this bunker buster do to the economy? While I have rarely met a tax cut I didn’t like, this one just may be more likely to send the economy into a downward spiral than it is to send up to orbit.

Puerto Rico Takes First Steps Toward Bankruptcy-ish Filing

After what has been the slowest of slow-motion train wrecks, Puerto Rico’s federal overseers have finally taken the inevitable first step toward considering the use of bankruptcy-ish proceedings, known as Title III, to allow the island to escape it's $70 billion debt burden. 

Cataclysm

Collapse generally comes as a surprise, even to those who predict it.

The IMF Is Not Done Destroying Greece Yet

Austerity is over, proclaimed the IMF this week. And no doubt attributed that to the ‘successful’ period of ‘five years of belt tightening’ a.k.a. ‘gradual fiscal consolidation’ it has, along with its econo-religious ilk, imposed on many of the world’s people. Only, it’s not true of course. Austerity is not over. You can ask many of those same people about that. It’s certainly not true in Greece.