PUERTO RICO DEBT UNPAYABLE

Courtesy of: Visual Capitalist


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bostonbob

I see Massachusetts is number three closely behind the corrupt and bankrupt Rhode Island. Whenever I try to explain this to my oh so liberal friends they just get the confused deer in the headlights look. They think that Massachusetts is so special and so smart that we will pull through any financial problems that may come along. As I like to tell my kids, “that works until it doesn’t.” When the music stops we will be desperately looking for a chair. The last down turn the states were bailed out by the Feds, next time they may not be so lucky, especially if the Feds decide that they cannot really afford it and do not want or cannot print anymore money. If the feds drastically cut Medicaid/Medicare, school loans and defense spending a lot of people in this state would be looking for jobs. This will not end well
Bob.

Chicago999444
Chicago999444

You forgot Illinois… and Chicago.

Since last month’s news the the CPS debt was downgraded to junk, triggering a payment that will leave the CPS completely out of cash, and the concurrent jaw-flapping of that greedy pig, CPU President Karen Lewis, threatening a strike, the media has become eerily silent on the matter of the CPS financial predicament, and for that matter, that of the City of Chicago. Perforce, most people have forgotten about it and are busy posting pics of their latest restaurant meal and discussing gay marriage.. but I am chewing my lip off, wondering what shoe is about to drop next. Chicago’s GO bonds are trading to yield over 5% and the CPS bonds are trading to yield nearly 7%, while most municipal debt is trading to yield 1.5% at best.

Rahm Emanuel is asking the CPU for a 7% cut in the pay of school district employees. I support this, but have to admit I’d support it with more enthusiasm if our top officials would lay their own heads on the block first, and voluntarily roll back their own pay that they have jacked 20% since Y2K, back to year 2005 levels at least.

But that is like expecting God to repeal the law of gravity when you are trying to move a 300 lb breakfront up 3 flights of spiral stairs.

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