Standard and Poor just downgraded Puerto Rico's Munis from BBB- to BB+. This means that these bonds will continue to shrink in value and so will the investment companies that bought them. PR will have to deposit $1B as collateral.
Across the US, Cities and States with Democrats at the helm of leadership are experiencing financial difficulties. Detroit is officially bankrupt and a number of other cities are considering a similar step. Chicago needs $900 Million, but its loans are structured to cut in some years in the future. Chicago is bankrupt and no one in his right mind will invest in Chicago's bonds. California is reeling under the twin disasters of drought and Gov Jerry (Moonbeam) Brown and his spending plans. Democrats just can not make themselves adopt a reasonable spending plan.
Friday, February 7, 2014
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