How the Puerto Rican debt crisis could become a bailout

May 10th, 2016 at 9:04 am

Meaning a cost shift from creditors to taxpayers. Obviously, the gov’t of the island borrowed far beyond their means–see the John Oliver link for great and even entertaining detail on the evolution of the crisis. And thus an oversight board is a reasonable quid pro quo for restructuring. But if not for the legal quirk that the commonwealth has no path to bankruptcy, we wouldn’t even be arguing about this.

Over at WaPo.

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