Forget Greece. Puerto Rico Is Poised To Default On $72 Billion In Debt

[mrjarrell]

And it will reverberate through the American economy, most noticeably the bond market (held by individuals in 401Ks and pensions). Why they ever allowed themselves to get in this predicament is beyond me. Now, congress and the executive branch are going to have to make moves to allow a structured bankruptcy, (now disallowed, as they are a commonwealth). This is going to get ugly. Detroit was bad enough, this won't be any better and will likely be a lot worse.

http://www.nytimes.com/2015/06/29/b...-says-islands-debts-are-not-payable.html?_r=3

 

[SEIndSAM]

According to the article, only 40% of the workforce actually work, the balance is on public benefits or in the underground economy. It's no wonder they can't pay their bills.

Full link here. Puerto Rico urges U.S. to help save it from default

 

[BehindBlueI's]

It'll be ugly for PR. The rest of us won't notice. If you were stupid enough to be heavily invested in junk bonds from one source, sucks to be you, but that's a tiny fragment of bond holders. Hopefully you bought insured bonds.

 

[printcraft]

 

[mrjarrell]

Congress has finally made some kind of movement on the PR debacle. Probably far too little, far too late, as usual. Not sure what they think lowering the minimum wage will do to help them out of their fiscal calamity. Probably just a trial run for something they'd like to do in the rest of the country.

Puerto Rico: Congress Reaches Agreement to Act on Debt

 

[Kirk Freeman]

Congress has finally made some kind of movement on the PR debacle.

Too bad. Congress shouldn't do anything at all, especially as to PR.

Not sure what they think lowering the minimum wage will do to help them out of their fiscal calamity.

How can withdrawing governmental interference from the marketplace be a bad thing?

 

[T.Lex]

Not sure what they think lowering the minimum wage will do to help them out of their fiscal calamity. Probably just a trial run for something they'd like to do in the rest of the country.

Lowering the minimum wage across the country? A boy can dream....

 

[HoughMade]

Lowering the minimum wage across the country? A boy can dream....

If we're dreaming, I dream of eliminating it altogether and allowing the market to set the price. My 11 year old just negotiated with our neighbor to do her yard work. He gets $10/hr and she reimburses for the gas he uses in our mower (I, however, do not get mower rent).

Why don't i do my job for $10/hr? Because I can get a tad more than that elsewhere. It's funny how the market sets all wages except at the bottom....why?

As to PR, it's a warning, but one few will heed.

 

[Kirk Freeman]

Lowering the minimum wage across the country? A boy can dream....

I thought Freedom was a good thing?

 

[T.Lex]

I thought Freedom was a good thing?

Me, too.

What are we arguing about, again? I'm confused.

 

[mrjarrell]

Lowering the minimum wage across the country? A boy can dream....

I agree, too. I'm just saying that I don't see how it will have any positive affect on their current fiscal situation. It's a nonsensical addition to the bill that will not move things in any direction.

 

[T.Lex]

I agree, too. I'm just saying that I don't see how it will have any positive affect on their current fiscal situation. It's a nonsensical addition to the bill that will not move things in any direction.

As a matter of fiscal policy, it can stimulate new businesses or induce existing black/gray market businesses to come out of the shadows. It is risky, and is a longer-term policy than what they really need, but it can help. Eventually.

 

[BehindBlueI's]

Why don't i do my job for $10/hr? Because I can get a tad more than that elsewhere. It's funny how the market sets all wages except at the bottom....why?

Do you really want to know why, or is this just another "if you work harder you can be part of the 1%" type thing? Also, do you really believe free market sets your wages? That there's no protections for your particular field in the form of artificial barriers to entry? Seems like we've had this discussion before.

 

[HoughMade]

Do you really want to know why, or is this just another "if you work harder you can be part of the 1%" type thing? Also, do you really believe free market sets your wages? That there's no protections for your particular field in the form of artificial barriers to entry? Seems like we've had this discussion before.

Hard work alone will not gain most people entry into the 1%. I've never made that argument.

There is no such thing as a totally free market, true, but if you think people in my income bracket, doing what I do were born into it, think again.

Not everyone has the ability to do what I do, or what you do for that matter. Education and training and experience, none of which are gained without determination and grit, pay dividends.

The minimum wage probably does raise the wages of some people...and if their motivation, skills and quality of work don't deserve $7.55, why should they get it? The minimum wage also depresses wages at the lower end because there is not an infinite supply of money to pay more to people who do a better job when people who deserve $5/hr are overpaid.

 

[Twangbanger]

It'll be ugly for PR. The rest of us won't notice. If you were stupid enough to be heavily invested in junk bonds from one source, sucks to be you, but that's a tiny fragment of bond holders. Hopefully you bought insured bonds.

Oh, I bet Illinois, California, and any other state possibly mulling some kind of bailout somewhere down the road will notice and pay plenty of attention.

 

[BehindBlueI's]

Hard work alone will not gain most people entry into the 1%. I've never made that argument.

There is no such thing as a totally free market, true, but if you think people in my income bracket, doing what I do were born into it, think again.

Not everyone has the ability to do what I do, or what you do for that matter. Education and training and experience, none of which are gained without determination and grit, pay dividends.

The minimum wage probably does raise the wages of some people...and if their motivation, skills and quality of work don't deserve $7.55, why should they get it? The minimum wage also depresses wages at the lower end because there is not an infinite supply of money to pay more to people who do a better job when people who deserve $5/hr are overpaid.

We've had all those arguments before, not really looking to rehash them. You asked why we don't let the market set wages at the lower end like we do the upper end. The simplest answer is because the market failed to do a good job of it. If you really want to know "why" I can explain it further. If you're just throwing it out there with no real interest, I won't bother.

 

[ArmedProgrammer]

Do you really want to know why, or is this just another "if you work harder you can be part of the 1%" type thing? Also, do you really believe free market sets your wages? That there's no protections for your particular field in the form of artificial barriers to entry? Seems like we've had this discussion before.

I do think that there's a barrier to entry to being a lawyer (Bar Association)

Now consider programmers/software guys like me. No barrier to entry and the market definitely sets our wages... And if you get obsolete - you're screwed.

 

[Leadeye]

Same old deal, a combination bond holder haircuts and federal money. Been watching it go by since NYC in 1975, Chrysler, GM, Birmingham, and Detroit. Maybe Illinois will follow this one.

 

[Jludo]

I do think that there's a barrier to entry to being a lawyer (Bar Association)

Now consider programmers/software guys like me. No barrier to entry and the market definitely sets our wages... And if you get obsolete - you're screwed.

Most computer science related fields are like that. One thing I like about computers is it seems to one of the few fields relatively uninhibited by government regulations. ( mostly a fast moving field on a slow moving legislature)
Yet it grows and innovates by leaps and bounds. Strange how that works...

 

[AA&E]

Hard work alone will not gain most people entry into the 1%. I've never made that argument.

There is no such thing as a totally free market, true, but if you think people in my income bracket, doing what I do were born into it, think again.

Not everyone has the ability to do what I do, or what you do for that matter. Education and training and experience, none of which are gained without determination and grit, pay dividends.

The minimum wage probably does raise the wages of some people...and if their motivation, skills and quality of work don't deserve $7.55, why should they get it? The minimum wage also depresses wages at the lower end because there is not an infinite supply of money to pay more to people who do a better job when people who deserve $5/hr are overpaid.

I'm curious, who ACTUALLY makes minimum wage? Do these jobs really exist? I see help wanted signs on placards outside restaurants, gas stations, etc. all the time. While fueling up my car, I saw a gas station attendant position starting at $9.75/hour Sunday. McDonalds in my area constantly advertises starting pay of $9.75 to $10.50/hour. I suspect, much like every other social 'injustice' being utilized to divide us, it's more distraction than real issue.