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Here Comes "Prexit": Puerto Rico In "Death Spiral", Debts Are "Not Payable", Governor Refuses To "Kick The Can"

Tyler Durden's picture




 

As we noted last night, for a whole lot of time nothing at all can happen under the guise of "containment"... and then everything happens all at once. Because not even two full days after Greece activated the "Grexit" emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn't mean that the commonwealth will service it.  Quoted by the NYT, García Padilla said "The debt is not payable." He added that "there is no other option. I would love to have an easier option. This is not politics, this is math.

Funny: math went out the window in 2009 when central bank "faith" took over. The problem is that faith has run out, as has the "political capital" to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this is "a startling admission from the governor of an island of 3.6 million people, which has piled on more municipal bond debt per capita than any American state."

More:

A broad restructuring by Puerto Rico sets the stage for an unprecedented test of the United States municipal bond market, which cities and states rely on to pay for their most basic needs, like road construction and public hospitals.

 

That market has already been shaken by municipal bankruptcies in Detroit; Stockton, Calif.; and elsewhere, which undercut assumptions that local governments in the United States would always pay back their debt.

The immediate implication, as accurately presented by the NYT, is that Puerto Rico's call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors become more wary of lending. Indicatively, Puerto Rico’s bonds have a face value roughly eight times that of Detroit’s bonds.

What is worse for the illusions that is US "capital markets" is that virtually all the same hedge funds who are long Greece on hopes of some central bank bailout, are also long Puerto Rico. As such, while tomorrow most will be spared...

... some of the most "respected" US hedge funds will suffer a gruesome bloodbath.

What happens next is unclear: "Puerto Rico, as a commonwealth, does not have the option of bankruptcy. A default on its debts would most likely leave the island, its creditors and its residents in a legal and financial limbo that, like the debt crisis in Greece, could take years to sort out."

So without the "luxury" of default, what is PR to do? Why petition to be allowed to file Chapter 9 naturally: after all everyone is doing it.

In Washington, the García Padilla administration has been pushing for a bill that would allow the island’s public corporations, like its electrical power authority and water agency, to declare bankruptcy. Of Puerto Rico’s $72 billion in bonds, roughly $25 billion were issued by the public corporations.

 

Some officials and advisers say Congress needs to go further and permit Puerto Rico’s central government to file for bankruptcy — or risk chaos.

 

“There are way too many creditors and way too many kinds of debt,” Mr. Rhodes said in an interview. “They need Chapter 9 for the whole commonwealth.”

García Padilla said that his government could not continue to borrow money to address budget deficits while asking its residents, already struggling with high rates of poverty and crime, to shoulder most of the burden through tax increases and pension cuts. Where have we heard that before...

He said creditors must now “share the sacrifices” that he has imposed on the island’s residents.

 

“If they don’t come to the table, it will be bad for them,” said Mr. García Padilla, who plans to speak about the fiscal crisis in a televised address to Puerto Rico residents on Monday evening. “What will happen is that our economy will get into a worse situation and we’ll have less money to pay them. They will be shooting themselves in the foot.”

And the punchline:

“My administration is doing everything not to default,” Mr. García Padilla said. “But we have to make the economy grow,” he added. “If not, we will be in a death spiral.”

And this one: any deal with hedge funds, who are desperate to inject more capital in PR so they can avoid writing down their bond exposure in case of a default, "would only postpone Puerto Rico’s inevitable reckoning. “It will kick the can,” Mr. García Padilla said. “I am not kicking the can.”

We wonder how long before Tsipras, who earlier was quoting FDR, steals this line too.

And speaking of Prexit, how long before Puerto Rico exits the Dollarzone... and will there be a Preferendum first or will the governor, in his can kick-less stampede, just make a unilateral decision to join Greece, Ukraine, Venezuela and countless other soon to be broke countries in the twilight zone of Keynesian sovereign failures?

 

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Sun, 06/28/2015 - 21:58 | 6247360 HonkyShogun
HonkyShogun's picture

LMAO @ the NWO "elites" watching shit crumble.

Sun, 06/28/2015 - 22:07 | 6247384 TeamDepends
TeamDepends's picture

OK "Rich Port", if you don't want to play there will be an "asteroid" headed your way.

Sun, 06/28/2015 - 22:09 | 6247410 rubiconsolutions
rubiconsolutions's picture

Perhaps Puerto Rico can align itself with a financially sound country that has a robust economy. Oh, wait. Oops.

Sun, 06/28/2015 - 22:18 | 6247439 NoDebt
NoDebt's picture

"Kick those worthless Puerto Ricans out of the Union!"

I just wanted to get that in before somebody else stole it.

Sun, 06/28/2015 - 22:22 | 6247454 knukles
knukles's picture

Hot boogers!  MOAR Good News!
Now, I ask you, just how much will Obie-won throw at the PR vote?
Huh huh huh huh huh?

              So comforting that everything's A-OK Hunkie Dorrey!

                        NoDebt:  You left off the "Bitchez"

Sun, 06/28/2015 - 22:23 | 6247473 Stuck on Zero
Stuck on Zero's picture

Puerto Rico has one of the highest AIDS rates in the world.  Now they have one of the highest debt to population ratios. What will they go for next?

Sun, 06/28/2015 - 22:28 | 6247497 ThroxxOfVron
ThroxxOfVron's picture

"What will they go for next? "

 

Largest ethnic group representation on waiting lists for rent controlled apartments in NYC.

 

Sun, 06/28/2015 - 22:34 | 6247520 Soul Glow
Soul Glow's picture

A LOT of people in the US own Puerto Rican bonds.

A LOT.

Sun, 06/28/2015 - 22:41 | 6247561 NoPension
NoPension's picture

Do they know it?

Sun, 06/28/2015 - 22:47 | 6247583 Anusocracy
Anusocracy's picture

Just another canary in the cornhole.

Sun, 06/28/2015 - 23:20 | 6247712 TruthInSunshine
TruthInSunshine's picture

Detroit had 18 billion in liabilities when it declared municipal bankruptcy.

Puerto Rico is Detroit x 4, and no, they are no more able to print their own currency than Detroit or Greece in an effort to technically pay creditors in debased currency (since they use the Fed Reserve Fiat Paper).

We're going to see China, Spain, Greece, Portugal, Japan, Italy, France, possibly South Korea and some smaller players all tip into deep recession or even depression this year, with China + Japan kickstarting the next global economic crisis in a massively leveraged, collateralized by increasingly meaningless fiat paper and derivatives thereof, world.

Mon, 06/29/2015 - 01:04 | 6247937 Dolar in a vortex
Dolar in a vortex's picture

I booked airline tix last night for PR in August.

Why did i not know this earlier? I'm not a stranger to ZH.

Mon, 06/29/2015 - 01:19 | 6247961 HardlyZero
HardlyZero's picture

So...PR gets their bankrupt financed before Greece. 

Will there be a race to the Xexits, like Portugal, Spain, Italy ?

Which country will next go Bankrupt ?

Mon, 06/29/2015 - 04:31 | 6248207 USisCorrupt
USisCorrupt's picture

Look for a RUN on the PHYSICAL Precious Metal's Market, that will be the run that matters.

 

The FED's put out a terror alert for the US for the coming July 4th Holiday. They should know for they will be the ones who will be the one's who are doing the dirty deed.

Mon, 06/29/2015 - 07:41 | 6248465 Luc X. Ifer
Luc X. Ifer's picture

last week got news from all my friends working in IT departments for financial institutions all over the world that they got directives to prepare to be able to face a shitstorm of epical proportions. it was expected and if you think it wasn't u r just a plain ignorant retarted ass.

Tue, 06/30/2015 - 05:05 | 6253165 fancyfree
fancyfree's picture

The shitstorm of epical proportions is simply the switch to real assets and the rule of law, as the Network of Global Corporate Control

 

http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf  

comes under receivership in the Global Debt Facility.    The coalition for the rule of law is now in charge.  The dirty deed is Zerohedge and you trying to scare everybody.  We know who is in charge, and it's us, not the 1% ers.

Sun, 06/28/2015 - 23:27 | 6247732 Shawnee
Shawnee's picture

I thought those were gerbils

Mon, 06/29/2015 - 00:19 | 6247851 SFopolis
SFopolis's picture

I'm going to start to use the "...canary in the cornhole" line.  Good one.

 

Mon, 06/29/2015 - 07:59 | 6248516 Cornholio
Cornholio's picture

CORNHOLIO!

 

Sun, 06/28/2015 - 22:58 | 6247644 ThroxxOfVron
ThroxxOfVron's picture

I think some stagehands I know are going to get a big surprise when they open their Mass Mutual annuity packet next month...

Mon, 06/29/2015 - 00:56 | 6247927 disabledvet
disabledvet's picture

Talk about "hoovering up dollars."

Plus the Fed is still on track to raise rates this fall.

This could start slamming into all sorts of muni classes of debt inside the USA itself.

Yet again...

Mon, 06/29/2015 - 05:43 | 6248286 Nobody For President
Nobody For President's picture

The Feds are NOT gonna raise rates this Fall, September, October, fucking never.

Get over it. It is total sound bite bullshit.

The Feds CAN NOT RAISE RATES. Period.

Ain'[t gonna happen. Political theater only. 

Mon, 06/29/2015 - 06:44 | 6248354 THE 4th Quadrant
THE 4th Quadrant's picture

We're entering the 4th Quadrant.

Mon, 06/29/2015 - 08:20 | 6248577 StychoKiller
StychoKiller's picture

Is that the lower-left corner of the "Swirly-gram?"

Sun, 06/28/2015 - 23:31 | 6247745 Abitdodgie
Abitdodgie's picture

Did you know that EVERY American has a Corporation registered in Puerto Rico. Well you most likely did not if you had you would of taken possestion of it.

Sun, 06/28/2015 - 23:44 | 6247778 ThroxxOfVron
ThroxxOfVron's picture

"Did you know that EVERY American has a Corporation registered in Puerto Rico. "

 

An interesting assertion.  Link to information, please.

Mon, 06/29/2015 - 06:45 | 6248355 PirateOfBaltimore
PirateOfBaltimore's picture

Is that like everyone having a cousin in Miami? 

 

Oh wait, wrong bankrupt island.

Mon, 06/29/2015 - 20:35 | 6252022 Calmyourself
Calmyourself's picture

WGAFUCK

Sun, 06/28/2015 - 22:48 | 6247591 Save_America1st
Save_America1st's picture

exactly...obama will send ships down there and bring all 3 million of them into the country.  We already pay for everything they have and they pay no income taxes to the feds...he'll make them the 51st state and register every single one of them to vote for the fucking D's.  They'll think they hit the fucking lottery jackpot, but they'll just be added to the slave pool just like all the rest.   

Mon, 06/29/2015 - 02:24 | 6248038 TheSecondLaw
TheSecondLaw's picture

Make that the 52nd state.  Israel is the 51st.

Mon, 06/29/2015 - 03:14 | 6248110 Seahorse
Seahorse's picture

I thought it was the UK

Mon, 06/29/2015 - 07:57 | 6248502 HowdyDoody
HowdyDoody's picture

Make that the 52nd state.  Israel is the 1st.

TFTFY

 

Mon, 06/29/2015 - 07:16 | 6248407 spiral galaxy
spiral galaxy's picture

Re: Obama's saving ships  ..........with Captain Boehner at the ship's wheel and 1st mate Roberts hoisting the Rainbow flag!??!  Yes, it will be glorious.  However, given both suffering from navigation and  sense of political direction disability, it'll be a hard left out of the PR ports and across the Atlantic blue to safe havens of the Middle East!!  Bon voyage El Capitan!!!

Sun, 06/28/2015 - 23:40 | 6247770 Larry Dallas
Larry Dallas's picture

Cockroaches. Never ever visit or be in Manhattan on the first weekend of June. Ever.

Mon, 06/29/2015 - 05:06 | 6248246 Its_the_economy...
Its_the_economy_stupid's picture

The June PR parade is a skin fest  of the highest order.

Mon, 06/29/2015 - 07:58 | 6248508 HowdyDoody
HowdyDoody's picture

I didn't know people working in Public Relations went on parade. That seems a bit - radical - for that sort of person.

 

Sun, 06/28/2015 - 22:54 | 6247623 Savyindallas
Savyindallas's picture

maybe gay marriage will slow down these promiscuous homos. Probably not, but it will be a boon for divorce lawyers. They'll get rich. 

Mon, 06/29/2015 - 01:41 | 6247982 Chandos
Chandos's picture

As long as they have gay mariage they'll be a l l right.....

Sun, 06/28/2015 - 22:37 | 6247537 Wahooo
Wahooo's picture

Oh, but it's Bush's fault my friend, Bush's fault.

Sun, 06/28/2015 - 22:59 | 6247603 Anusocracy
Anusocracy's picture

Everybody in government and every government lover's fault.

I hope the dupes of the world are on the short list for extinction.

Sun, 06/28/2015 - 22:51 | 6247605 Mentaliusanything
Mentaliusanything's picture

Which Bush,... Hue Due or Lue (I never trusted Lue)

Sun, 06/28/2015 - 22:28 | 6247484 ThroxxOfVron
ThroxxOfVron's picture

"Kick those worthless Puerto Ricans out of the Union!"

I just wanted to get that in before somebody else stole it. "

 

SHUT UP Wolfnodebtl !

 

( hee hee hee hee )

 

Sun, 06/28/2015 - 22:49 | 6247595 NoDebt
NoDebt's picture

It does sort of make you wonder if PR is more a part of the US than Greece is a part of the Euro/EU.

If you see the US government smashing PR over the head with "cash for reforms" demands, you know there is no such thing as the United States.  Which would be sad.  Except for Texas, which should have given the middle finger to the rest of the union quite some time ago (and might see such a situation as the perfect reason to do so).

 

Sun, 06/28/2015 - 23:09 | 6247657 ThroxxOfVron
ThroxxOfVron's picture

How can a bailout be spun as saving the pensions of our beloved hard working IRS and TSA employees?

 

Or, maybe they've been watching and learning from the Greek drama and are talking to the Russians about a deep water port or ng pipeline to Cuba?

Mon, 06/29/2015 - 00:11 | 6247832 sun tzu
sun tzu's picture

I believe TX tried to leave in 1861 and it didn't turn out too well

Mon, 06/29/2015 - 08:38 | 6248629 TuPhat
TuPhat's picture

We didn't want to leave.  We just like to fight.

Mon, 06/29/2015 - 08:57 | 6248711 marathonman
marathonman's picture

Yep, Texas and the rest of the South is still occupied territory.

Sun, 06/28/2015 - 22:32 | 6247513 NoPension
NoPension's picture

Jennifer Lopez has on of the finest asses I've ever laid eyes upon.
Does THAT count for anything?

Sun, 06/28/2015 - 22:38 | 6247543 A Nanny Moose
A Nanny Moose's picture

You didn't oggle that.

Sun, 06/28/2015 - 23:43 | 6247776 flyingcaveman
flyingcaveman's picture

Might have to double-ly seasonally adjust that ass.

Sun, 06/28/2015 - 23:43 | 6247777 flyingcaveman
flyingcaveman's picture

Might have to double-ly seasonally adjust that ass.

Sun, 06/28/2015 - 23:17 | 6247700 Antifaschistische
Antifaschistische's picture

nothing says, there is no true market for debt...like the revelation that someone loaned PUERTO RICO  SEVENTY TWO DAMN BILLION US DOLLARS!!

Mon, 06/29/2015 - 20:41 | 6252035 Calmyourself
Calmyourself's picture

NO SHIT, are these assholes responsible for any due diligence whatsoever??  Why is it just hang it on the taxpayer, corrupt bastards in Washignton, weeping cheetoh bastard flying on AF1 last week, sucking Barrys or Moochelles dick no doubt....

Sun, 06/28/2015 - 22:54 | 6247622 bluskyes
bluskyes's picture

Luxembourg, Switzerland, or Vatican City?

Sun, 06/28/2015 - 23:11 | 6247683 The central planners
The central planners's picture

The dream its getting over folks!!!!

Sun, 06/28/2015 - 22:20 | 6247455 Beatscape
Beatscape's picture

This has negative implications for the muni bond market.

It's all interconnected...  Now we get to see how resilient the system is to handle two major sovereign defaults. 

Sun, 06/28/2015 - 22:44 | 6247572 NoDebt
NoDebt's picture

PR is not soveriegn.  They are a territory of the US.  The Spanish gave it to us after we beat the stuffing out of them in the S/A war.  I think they were glad to be rid of it, to be honest.

Sun, 06/28/2015 - 22:55 | 6247628 rbg81
rbg81's picture

Who cares?  Gay marriage is now the Law of the Land.  All is well.

Sun, 06/28/2015 - 23:38 | 6247764 Ward cleaver
Ward cleaver's picture

Correct RBG and don't forget the banning of the Confederate Flag, our politicians are prioritizing by least important issues. Don't worry about unemployment, destruction of the middle class, police basically on work slowdowns and ZIRP creating massive financial bubbles in equity and fixed income "markets". Anybody know who's left in dancing with the stars?

Sun, 06/28/2015 - 23:31 | 6247632 Radical Marijuana
Radical Marijuana's picture

http://www.zerohedge.com/news/2015-02-11/small-grexit-dominoes-global-crises-grow

From Small 'Grexit' Dominoes, Global Crises Grow

Domino Chain Reaction (1:10 YouTube video)

Everyone with anything to lose has had a stake in not starting the dominoes falling. However, that meant the layout of dominoes was able to get even BIGGER, and thus, even more unstable, and so, more subject to some out-of-control series of catastrophic collapses ... There are indeed a wide and wider variety of relatively tiny dominoes, such as Grexit and/or Prexit, that could start the smash up:

http://www.youtube.com/watch?v=8yYWILv91YU

Skip to the 2 minute mark, to watch Largest Toppling Dominoes, as metaphor ??? Financial weapons of mass destruction are as unprecedented as physical weapons of mass destruction ...

Sun, 06/28/2015 - 22:24 | 6247474 MsCreant
MsCreant's picture

I don't feel as confident as you do about this. You set dominoes up to fall according to a plan so that they can put on a show for the viewers.

The Elites may be applauding.

Sun, 06/28/2015 - 22:30 | 6247508 Normalcy Bias
Normalcy Bias's picture

That's what I'm starting to fear: 1. Create crisis 2. Make people desperate for a solution 3. Present solution (total subjugation sold as liberation)

Sun, 06/28/2015 - 22:54 | 6247625 A Nanny Moose
A Nanny Moose's picture

We've seen this before. Thesis, Antithesis, Synthesis.

Thought experiment: If one presumes that any crisis (purposeful or not) is just the means by which the next step in some central plan is sold/activated by something or someone, what does it look like when the that something/someone loses control? At what point does the loss of control by the become recognizable or even actionable?

How can it be helped along?

Sun, 06/28/2015 - 23:00 | 6247650 Radical Marijuana
Radical Marijuana's picture

Good questions!

Mon, 06/29/2015 - 07:14 | 6248401 Bogdog
Bogdog's picture

For the answer to that you'd have to ask the Reptillian Overlords. And you can't get an appointment.

Mon, 06/29/2015 - 09:11 | 6248713 conscious being
conscious being's picture

How can it be helped along?

By formulating and presenting a viable, better alternative. Never let a crisis go to waste.

Greece should go back to the Drachma.

Banks could have currencies that compete based on perceived risk.

What else?

Democracy needs to appear in the media. The stranglehold that the overlords have on the media has to end. Competing news brands?

Blue sky this thing.

Mon, 06/29/2015 - 06:16 | 6248328 Solio
Solio's picture

You are fully awake!

Sun, 06/28/2015 - 22:33 | 6247518 doctor10
doctor10's picture

shoulda repealed O'Care last week

Puerto Rican Peso anybody?

Sun, 06/28/2015 - 22:53 | 6247616 NoDebt
NoDebt's picture

Before the dollar, they used the Spanish Peseda.

Mon, 06/29/2015 - 12:17 | 6249761 Charming Anarchist
Charming Anarchist's picture

Strike both of them out of ag and you can call them whatever you want. 

Sun, 06/28/2015 - 22:38 | 6247542 WillyGroper
WillyGroper's picture

They're the ones laffing.

IIRC Schiff moved & operates there.

Sun, 06/28/2015 - 22:59 | 6247647 zorba THE GREEK
zorba THE GREEK's picture

I went to Puerto Rico once. Got off the plane, had a look around, got back on

the plane and came back home. Hell, the whole damn place was overrun with

Puerto Ricans.

Mon, 06/29/2015 - 00:15 | 6247841 sun tzu
sun tzu's picture

Puerto Rico would be great if it wasn't full of Puerto Ricans. 

Seriously, most of them are good people. They're typical islanders. You can get much work out of them. The island would be much worse if the scum didn't all go to New York. 

Sun, 06/28/2015 - 23:46 | 6247785 Trogdor
Trogdor's picture

LMAO @ the NWO "elites" watching shit crumble.

I wouldn't break out the party hats just yet - the psychopaths are evil, arrogant and sick as Hell, but they're NOT stupid.  While the coat-tail riders and feckless cheerleaders will be stripped naked, wire-washed and punted onto the street peniless, wondering stupidly at WTF just happened, the Deep State knows what they're doing - they're gambling on the doctrine of "Order out of Chaos"

The trick is for the people to see it for what it is: a big game being played on them .... before the noose is tightened even more.  Hopefully, humanity will recognize the rot at it's source, track it down, and burn it to it's roots.

Mon, 06/29/2015 - 06:41 | 6248349 keed
keed's picture

that is precisely their plan.  ALL economies crash,   everyone become debt slaves,  order out of chaos. problem-reaction-solution.   after the starvation and riots worldwide,  depopulation ensues,  they have all the assets,  we have worthless paper,  they bring in the new solution - one world govt,  one world currency.  NWO is right on track

Sun, 06/28/2015 - 21:58 | 6247361 davidalan1
davidalan1's picture

Here we go....all those been waiting for reset may be getting your wish...oh oh domino...Van Morrison

Sun, 06/28/2015 - 22:13 | 6247427 salvadordaly
salvadordaly's picture

the commonwealth cannot pay its roughly $72 billion in debts

But $18 Trillion is nothing to worry about? Hedge accordingly.

Sun, 06/28/2015 - 22:30 | 6247510 onewayticket2
onewayticket2's picture

Don't worry, they 'identify' with solvency.

Best
Rachel Dolezar

Sun, 06/28/2015 - 22:34 | 6247523 NoPension
NoPension's picture

You know the old saying;
" owe the bank $72 billion, the bank owns YOU. Owe the bank $18 trillion, and you own the BANK!"

Heard that somewhere.

Sun, 06/28/2015 - 22:01 | 6247368 buzzsaw99
buzzsaw99's picture

janet will buy them

planet shmanet janet [/frank n furter]

Sun, 06/28/2015 - 22:24 | 6247479 Proofreder
Proofreder's picture

It's just a Jump to the Left ...

Then a Jump to the Right

Pelvic Thrust, pelvic thrust, pelvic thrust     Oops

Sun, 06/28/2015 - 23:25 | 6247726 WTFMOFO
WTFMOFO's picture

<<<<<< You do the hokey pokey and you turn yourself around?

<<<<<< Let's do the time warp again?

Sun, 06/28/2015 - 22:02 | 6247373 This is it
This is it's picture

Inconsequential.

Sun, 06/28/2015 - 22:05 | 6247389 buzzsaw99
buzzsaw99's picture

The immaterial has become... immaterial. [/Lord Cutler Beckett]

Sun, 06/28/2015 - 22:08 | 6247409 disabledvet
disabledvet's picture

Looks like another Skyscraper in Lower Manhattan has just spilled onto the open market again.

Opening bid: one dollar.

Sun, 06/28/2015 - 22:08 | 6247407 HonkyShogun
HonkyShogun's picture

Don't you mean "inconceivable"?

 

 

Sun, 06/28/2015 - 22:11 | 6247423 This is it
This is it's picture

Hey how's your weekend so far? Did anything exciting? It's morning where I am and the weather is great.

Oh, i'm straight. Always been.

Sun, 06/28/2015 - 22:32 | 6247514 Wahooo
Wahooo's picture

Exceptional!

Sun, 06/28/2015 - 22:03 | 6247382 401K of Dooom
401K of Dooom's picture

Who cares!  We have hot babes!  Gimmie MOAR babes Tyler!  MOAR pictures of the babes Tyler!

Sun, 06/28/2015 - 22:14 | 6247426 grunk
grunk's picture

Go to the website GoodShit.

Sun, 06/28/2015 - 22:04 | 6247385 Chad_the_short_...
Chad_the_short_seller's picture

Anyone know of a PR etf or stock? Anything that tracks PR?

Sun, 06/28/2015 - 22:09 | 6247414 LetThemEatRand
Sun, 06/28/2015 - 22:17 | 6247444 Puerto Rico is ...
Puerto Rico is worst than Greece's picture

Nothing that tracks PR or its bonds, but you can look at companies (mostly banks) based on the Island: BPOP, OFG, FBP, GTS & EVTC.

Sun, 06/28/2015 - 22:53 | 6247618 Chad_the_short_...
Chad_the_short_seller's picture

Hey thanks A LOT man, really appreciate that!!!!! I will look them up and start watching. Might even grab some puts on one tomorrow. Any opinion on which would fall the hardest due to this news out of PR?

Sun, 06/28/2015 - 22:05 | 6247388 wendigo
wendigo's picture

FUCK THOSE MOTHERFUCKING MOTHERFUCKERS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Sun, 06/28/2015 - 22:10 | 6247417 This is it
This is it's picture

U mean the homomomomos??

Sun, 06/28/2015 - 22:07 | 6247404 cherry picker
cherry picker's picture

I think Puerto Rico is a US responibility isn't it?

Who's next?  Spain.

This may be the little straw that breaks the camel's (USSA) back.

Sun, 06/28/2015 - 22:11 | 6247420 disabledvet
disabledvet's picture

More like the USS Saipan would appear...

Sun, 06/28/2015 - 22:11 | 6247424 disabledvet
disabledvet's picture

More like the USS Saipan would appear...

Sun, 06/28/2015 - 22:21 | 6247459 Archive_file
Archive_file's picture

Chicago is next.

Sun, 06/28/2015 - 22:52 | 6247607 Fukushima Fricassee
Fukushima Fricassee's picture

More ricans there than on the whole island.

Sun, 06/28/2015 - 22:15 | 6247437 A Lunatic
A Lunatic's picture

Clearly Puerto Rico will be let into the Union and become the 58th State.......

Sun, 06/28/2015 - 22:17 | 6247441 CHC
CHC's picture

Were are all the fucking know it all experts now?!?

Sun, 06/28/2015 - 22:20 | 6247457 kowalli
kowalli's picture

on CNBC, they didn't go anywhere

Sun, 06/28/2015 - 22:53 | 6247615 rbg81
rbg81's picture

Obviously, they need to elect Steve Liesman as Governor of PR--pronto!

Sun, 06/28/2015 - 22:25 | 6247481 buzzsaw99
buzzsaw99's picture

they're all here proclaiming teotwawki (for the 99th time)

Sun, 06/28/2015 - 22:18 | 6247446 Z_End
Z_End's picture

Goodbye and Good Riddance. Send over the hot chicks and the really good rum...

Sun, 06/28/2015 - 22:34 | 6247521 ThroxxOfVron
ThroxxOfVron's picture

Come to the Bronx.  Half of them are here already..

I gotta admit some of them are unbelievably stupid hot gravity defying brick house masterpieces even at 16 or 17.  

I mean..Daaaayaaaamm...

Sun, 06/28/2015 - 22:19 | 6247450 g speed
Sun, 06/28/2015 - 22:19 | 6247453 Bunga Bunga
Bunga Bunga's picture

Is that Jenner?

Sun, 06/28/2015 - 22:22 | 6247464 Bossman1967
Bossman1967's picture

Just print it up and add to the debt no problems

Sun, 06/28/2015 - 22:22 | 6247465 q99x2
q99x2's picture

Puerto Rico at least gets mentioned for something finally.

Sun, 06/28/2015 - 22:23 | 6247468 ThroxxOfVron
ThroxxOfVron's picture

I'm going to my last gig of the season at an educational institution in the Bronx NYC tomorrow.

About 1/4 of the other persons working at this facility are Puerto Ricans by birth, more of Puerto Rican heritage.  

I have been telling them since the tax proposals were voted down in April that PR was going to default before Obama leaves office, likely before 2015 ends.

I have also been telling them that a slew of new taxes are going to be rammed through by the bureaucracy to try and save their jobs and pensions as soon as they miss their first major bond payment despite earlier political reluctance.

Tomorrow is going to be very interesting...

Sun, 06/28/2015 - 22:27 | 6247491 Wahooo
Wahooo's picture

And what do they say?

Sun, 06/28/2015 - 22:38 | 6247546 ThroxxOfVron
ThroxxOfVron's picture

Corruption, man.   Fucking crooks.

Why do you think I'm in NYC, bro: the economy there sucks.

It's beautiful there, man!   But...

Fucking crooks.

 

-That is what they say, and not much else.

Mon, 06/29/2015 - 00:01 | 6247815 jwoop66
jwoop66's picture

but they will still vote for the socialist that offers them.... whatever.

Sun, 06/28/2015 - 22:23 | 6247471 jwoop66
jwoop66's picture

Barry will write them a (rubber)check tomorrow.  

 

 

 

 

 

we're fucked...

Sun, 06/28/2015 - 22:24 | 6247478 OhNo
OhNo's picture

This is so fuckin exciting and scary at the same time.

Sun, 06/28/2015 - 22:25 | 6247483 SillySalesmanQu...
SillySalesmanQuestion's picture

This clearly calls for more Rainbow Skittle Shitting Unicorn flag waving and chanting "USGAY, USGAY, USGAY...."

Sun, 06/28/2015 - 22:27 | 6247494 NoWayJose
NoWayJose's picture

This is the banksters nightmare scenario. What if countries and corporations and individuals suddenly stop paying on their loans - and turn out better for not paying!

Mon, 06/29/2015 - 00:14 | 6247839 LibertarianMenace
LibertarianMenace's picture

How could they not turn out better off? The rub is, The Squid/Morgue would cash in again on their DC bailout insurance.

Sun, 06/28/2015 - 22:29 | 6247505 Bill of Rights
Bill of Rights's picture

Moar awesomeness....

Sun, 06/28/2015 - 22:29 | 6247506 gwar5
gwar5's picture

It doesn't look so bad filing for bankruptcy if your sister did it first.

Sun, 06/28/2015 - 22:37 | 6247539 gwar5
gwar5's picture

Pretty messed up global monetary system when tiny banana republics can bring down the whole bunch. Anybody seen Goldman Sack lately??

Sun, 06/28/2015 - 22:40 | 6247555 NoPension
NoPension's picture

Why can't the IRS lose MY fucking records?

Sun, 06/28/2015 - 22:43 | 6247530 Salsipuedes
Salsipuedes's picture

I want to be in America!

Everything free in America!

Be on T.V. in America!

Selfies of ME in A-MER-EEE-KAAA!

           Catarina, 15, Fruit Vendor

 

Sun, 06/28/2015 - 22:37 | 6247532 SpasticGramps
SpasticGramps's picture

Finally let's get this government bubble bursting thing started. Enough of this central bank shit show.

Let the fucks eat their math sandwiches. I hope Yellen gets fisted with AIG's dead zombie hands when the derivative bill comes due for this paper fuckfest.

 

 

Sun, 06/28/2015 - 22:46 | 6247581 Salsipuedes
Salsipuedes's picture

Beautifully put.

Mon, 06/29/2015 - 07:04 | 6248381 Bogdog
Bogdog's picture

A true wordsmith, that one.

Sun, 06/28/2015 - 22:39 | 6247550 eddiebe
eddiebe's picture

Remember, Janet, never let them see you sweat!

Sun, 06/28/2015 - 22:40 | 6247558 noless
noless's picture

Anyone else not worried about peurto Rico officially becoming part of Florida?

Sun, 06/28/2015 - 22:45 | 6247577 Salsipuedes
Salsipuedes's picture

They'd never agree to it. Floridians are too ugly.

Sun, 06/28/2015 - 22:48 | 6247593 Duc888
Duc888's picture

 

 

 

 

We need to ban their flag.... or stop them from marrying gerbils or something like that.  More distractions....we need MOAR distractions.

Sun, 06/28/2015 - 22:55 | 6247617 honestann
honestann's picture

Notice the pattern?

"WE MUST MAKE THE ECONOMY GROW".

So says the government of Greece.

So says the government of Puerto Rico.

So says the governments of Italy, Spain, France.

-----

Well, guess what SCUMBAGS... once deep in debt YOU CANNOT GROW.

DUH.

When you're in deep debt, funds that would make growth possible are consumed by debt payments.

The only solution is to NOT BORROW.

The only solution is to NOT PLAY THE GAME.

But this will NEVER HAPPEN as long as some humans (politicians) can borrow money that other humans (generations of taxpayers) must pay back.

Even when nobody else is putting humans into debt, most humans put themselves into debt.  STUPID.  STUPID.  STUPID.

But at least SOME humans are wise, prudent and thoughtful enough to refuse to borrow.  Almost all growth comes ONLY from these people.  Too few remain.

Since these prudent, responsible folks are massively outnumbered and outvoted, game over.  Debt stupidity gone wild had 30~40 years to build up to the current level.  No way out.  Especially as long as any human remains who can borrow in the name of others.

Humans are finished.

Rest in pieces.

Sun, 06/28/2015 - 23:17 | 6247702 ThroxxOfVron
ThroxxOfVron's picture

"When you're in deep debt, funds that would make growth possible are consumed by debt payments. "

 

This statement is worthy of repetition.

 

 

Mon, 06/29/2015 - 23:54 | 6252764 TeethVillage88s
TeethVillage88s's picture

The Debt Burden is Economic/Monetary Leakage, Velocity is dampened.

In the USA we see Velocity dampen in all measure of Money stock, M1, M2, MZM.

http://research.stlouisfed.org/fred2/series/M1V (Top was 2007 Q4 at 10.7, now down to 6.3)
http://research.stlouisfed.org/fred2/series/M2V (Top was 1997 Q3 at 2.2, now down to 1.5)
http://research.stlouisfed.org/fred2/series/MZMV (Top was 1981 Q1 at 3.5, now down to 1.4)
http://research.stlouisfed.org/fred2/series/Mult (Top was January 1987 at 3.1, now down to .7)

This Economic System has lots of Leakage.

With open borders, open trade, no capital controls, No Tax Jurisdiction in the USA, off-shoring of capital, off-shoring of production, Out-sourcing Services,... but Financial ratings are off-shored to VICHY US Agencies, Auditing is Off Shored to VICHY US Independent Auditors, US Regulators are Off shored to VICHY US Citizens, US Government is Off Shored to VICHY Bankers in Disguise, US Constitution is Off Shored to VICHY US Lawyers...

Well What is left after that?

ANGLO Bankers have groomed people to infiltrate Europe and American Government & Bank Regulating Systems.

But don't expect University Professors and Personnel to protect the US System. Corruption was planned to include all interfaces. That means Press, Universities, Government, Regulatory Agencies, Accounting, Independent Auditing Agencies, Hell You Name It!!!

Sun, 06/28/2015 - 23:01 | 6247653 larry david
larry david's picture

Did the Jade helm map indicate whether Puerto Rico is a "hostile" territory or not?  I forget 

Mon, 06/29/2015 - 00:17 | 6247848 OldPhart
OldPhart's picture

I want to know if Puerto Rico's Interstate connects with Hawaii's.

Mon, 06/29/2015 - 07:20 | 6248415 Wahooo
Wahooo's picture

No, but it DOES connect with Wall Street.

Autopistas Metropolitanas de Puerto Rico, LLC (English: Puerto Rico Metropolitan Highways) —better known as Metropistas (English: Metro Highways)— is the public-private partnership, privately held company, and limited liability company that operates Puerto Rico Highway 5 (PR-5) and Puerto Rico Highway 22 (PR-22) on behalf of the Puerto Rico Highways and Transportation Authority. The company is a consortium between Goldman Sachs and abertis where Goldman Sachs initially served as majority owner through its Goldman Sachs Infrastructure Partners II infrastructure fund, while abertis initially served as minority partner and main operator. However, on February 2013 abertis acquired 6% of Goldman Sach's equity, elevating its position as majority owner with 51% ownership.

Sun, 06/28/2015 - 23:23 | 6247721 scatha
scatha's picture

We need war on banksters and their money. Let them eat it.

Enough is enough. We had it with their murderous greed.

Game Over.

There is a world without bankster's money we just need to open our eyes.

Know your enemy, know what their money is truly for:

https://contrarianopinion.wordpress.com/2015/04/14/plutus-and-the-myth-o...

 

 

Sun, 06/28/2015 - 23:43 | 6247775 Savyindallas
Savyindallas's picture

may take a while, if ever. Too many dumbass sheeple with their heads firmly entrenched up their asses  -addicted to the sweet smell of flavor enhanced methane. They think they are smelling roses and dandelions, rather than shit. 

Sun, 06/28/2015 - 23:26 | 6247727 user2011
user2011's picture

Damn, those girls are hot...  

Mon, 06/29/2015 - 00:03 | 6247820 mijev
mijev's picture

If there was some way to wipe out all the PR males and just leave those babes I know where I'd take my next vacation. Hopefully their backs are less hairy than their greek counterparts.

Mon, 06/29/2015 - 00:38 | 6247893 FrankDieter
FrankDieter's picture

Please do a handjob for me !

Mon, 06/29/2015 - 00:50 | 6247920 MsCreant
MsCreant's picture

Keep your Frank in your pants, please. 

Mon, 06/29/2015 - 11:11 | 6249493 Ass Burger
Ass Burger's picture

Bummer, I expected a link to Herzog's "Little Dieter Needs to Fly". Highly recommended: http://www.imdb.com/title/tt0145046/

Sun, 06/28/2015 - 23:36 | 6247757 Kelley
Kelley's picture

Hmm, Another $72 billion that can't be paid. That's $19,000 per man, woman and child in a ocuntry with nearly 14% unemployment.

$72 billion is a lot of money to the ones who are owed it.

 

 

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