While the Puerto Rican creditors' bargaining power on the island is to put it mildly, negligible, especially after the budget director made the imminent default into a crusade of poor versus rich, saying he won’t redirect cash from its operating budget to make debt payments, an unexpected supporter has emerged thousands of miles from the beleaguered island: New York's socialist mayor Bill DeBlasio. As CBS reports "New York City Mayor Bill de Blasio demanded President Obama and Congress immediately come to the island's fiscal rescue." "It's the federal government's obligation to act, because they can't stand idly by and watch Puerto Rico fail," de Blasio told a crowd of hundreds of Puerto Rico boosters gathered on the steps of City Hall.
The Chinese stock market crash has hit the world’s largest auto-market hard. For now, China is a dream turned sour for the Michigan-based Ford and General Motors and Germany’s Volkswagen. The risks are enormous and will become greater with time.
Junk-rated Chicago is paying nearly 8% to issue debt these days and although the city's fiscal woes are set to persist, some asset managers are taking the plunge ahead of a key court ruling scheduled for Friday.
- Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
- Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
- Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
- Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
- Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
- Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
- Bank of America replaces CFO in management shake-up (Reuters)
- The Financial Buzz? Pearson to sell Financial Times (Reuters)
World-renowned street artist Shepard Fairey - infamous for creating Obama's "Hope" image during the 2008 presidential campaign and more recently the "obey" street art - has apparently run out of it. He was arraigned today, after turning himself into Detroit police, on felony charges that he illegally tagged public and private property in the city. Detroit Police last month said Fairey set a bad example for other artists when he plastered his signature Andre the Giant posters on buildings in and near downtown.
- Greece Capitulates to Creditors’ Demands to Cling to Euro (BBG)
- Euro zone strikes deal with Greece after all-night struggle (Reuters)
- Tsipras Moves From Predator to Prey at Euro 'Torture' Summit (BBG)
- Euro’s Greek Boost Evaporates as Analysts Predict Losses to Come (BBG)
- Greek Fury Meets Resignation at Demands for Concessions (BBG)
- Poland Blames ‘Carefree’ Greek Populists for Tough EU Aid Deal (BBG)
- Europeans Press for Iran Nuclear Deal on Monday (WSJ)
- Iran nuclear talks: Deal 'near completion' (BBC)
- In speech, Clinton to put wages at heart of economic policy (Reuters)
- China’s Incendiary Market Is Fanned by Borrowers and Manipulation (NYT)
Don’t let anyone tell you that crime is going down in America. All over the United States, rates of violent crime in our major cities are increasing by double digit percentages. Murders are way up, shootings are way up and rapes are way up. So what is behind this sudden spike in crime? In Baltimore, authorities are pointing to the racial tensions that were stirred up by the riots that erupted in protest to the death of Freddie Gray. But what about the rest of the country? From coast to coast, we are witnessing a dramatic increase in violent crime, and the economy is not even crashing yet. So what is going to happen when the next great economic crisis hits us, unemployment skyrockets, and people really start hurting?
- Greece faces last chance to stay in euro as cash runs out (Reuters)
- Tsipras Begins Brussels Campaign to Keep Greece Inside the Euro (BBG)
- Greek Crisis Shows How Germany’s Power Polarizes Europe (WSJ)
- Eurogroup Head Dijsselbloem Calls for ‘Credible’ Greece Package (BBG)
- Europe Not Playing ‘Domino Theory’ Leaves Markets Calm on Greece (BBG)
- China stocks fall again despite support measures (Reuters)
- Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid Rout (BBG)
- Crude Creeps Higher After Downturn (WSJ)
The top 1 percent aren't killing the American Dream. Something else is - if you live in the wrong place. We like to tell ourselves that America is the land of opportunity, but the reality doesn't match the rhetoric - and hasn't for awhile.
"...anyone who knows mathematics can see that the United States is on the verge of collapse because its debt has gone exponential, but no European (never mind American) politician can state the obvious, no matter how obvious it is. American officials and politicians are definitely puppets, controlled by corporate lobbyists and shady oligarchs. But here's a shocker: these are also puppets - controlled by the simple imperatives of profitability and wealth preservation, respectively. In fact, it's puppets all the way down. And what's at the bottom is a giant, ever-expanding, financial black hole."
Having concluded last night that Puerto Rico debt is "unpayable," and 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, Padilla confirmed tonight that: PUERTO RICO TO SEEK "NEGOTIATED MORATORIUM", 'YEARS' OF POSTPONEMENT IN DEBT PAYMENTS. Likening his state's situation to that of Detroit and New York City (though not Greece), Padilla concluded, the economic situation is "extremely difficult," which is odd because just a few years ago when they issued that bond - everything was awesome?
Here Comes "Prexit": Puerto Rico In "Death Spiral", Debts Are "Not Payable", Governor Refuses To "Kick The Can"Submitted by Tyler Durden on 06/28/2015 21:57 -0400
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.
Wherever government officials sense a credible threat to their power, they invariably take every opportunity to crush it by any means necessary: this is the first principle of how governments function, and every libertarian is all too familiar with it. this latest tragedy, you can be sure, will be used to accomplish the same anti-libertarian ends: the calls to investigate “hate groups,” and even to ban “hate speech,” are already being heard. Of course, who and what constitutes a “hate group,” and who is hating whom are subjective evaluations that no government official is qualified to make...
The economic hitmen have honed their skills among the poor and relatively defenseless, and have been coming closer to home in search of new hunting grounds and fatter spoils. There is nothing 'new' or 'modern' about this. The only difference is that it is not happening in the past or in a book, it is happening here and now. "Economic powers continue to justify the current global system where priority tends to be given to speculation and the pursuit of financial gain. As a result, whatever is fragile is defenseless before the interests of the deified market, which becomes the only rule."