Puerto Rico power company forced to sell bonds amid crisis

Rapid News Network

The commonwealth’s politicians, policymakers and populace all bear some responsibility. And blame for that, economists say, stems in part from how the island operates under the same wage rules as the more prosperous 50 states.

But as the government teeters on bankruptcy, Wall Street is also to blame.

The story of Argentina’s attempt to default on its debt obligations is perhaps a good indicator of what’s to come for Puerto Rico. They go to the bank, and they say to the bank people, we’ve never missed a mortgage payment.

“Both [Greece and Puerto Rico] are in desperate need of a solution, but neither can access the solution they’re asking for, which is a bankruptcy process”, said Eric LeCompte, executive director of Jubilee US Network. Puerto Rico’s newest general-obligation bonds rose 3 percent to 69 cents on the dollar, paring losses from the previous two days.

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