The US government has once again deemed the Puerto Rican officials too stupid to solve their own problems and has issued a very expensive bailout to the island territory. PROMESA promises that the bondholders (those investors who put money up front and took money risks on a bet that Puerto Rico would be good for its debt) will be shafted and will most likely never see a dime of their financial input. What choice do they have, as well? They have been instructed through this PROMESA bill that not only must they accept whatever Puerto Rico decides to do for its government employees in the way of lucrative Christmas bonuses, but that bondholders are basically shut down from pursuing a negotiable way to recoup their losses.
In other words, those who took a risk on Puerto Rico, with money up front, have now been told to pound sand. Worse yet, now these same risk-takers must watch in seething anger as the Puerto Rican authorities, officials and politicians take all the extra income they’ve stolen and handed it directly over to the unions for their pensions.
This bailout has been a raging success for Puerto-Rica government workers. They’ve inherited a $100M money tree that automatically grows money each time its harvested.
Now for the really annoying part: Right after begging for their $94M bailout (and getting it, no questions asked) they then turn around and dole out $100M to the government employees as a Christmas thank you.
But if you’re enraged at this news now, keep in mind that the powers that be already knew that this was going to occur. How?
Turn to the final page: