Puerto Rico’s governor, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.
The governor, Alejandro García Padilla, and senior members of his staff said in an interview last week that they would probably seek significant concessions from as many as all of the island’s creditors, which could include deferring some debt payments for as long as five years or extending the timetable for repayment.
“The debt is not payable,” Mr. García Padilla said. “There is no other option. I would love to have an easier option. This is not politics, this is math.”
http://www.nytimes.com/2015/06/29/business/dealbook/puerto-ricos-governor-says-islands-debts-are-not-payable.html
I bet you thought it couldn't happen here, but Puerto Rico is part of the United States. Many cities and states are in a similar predicament, but just haven't admitted it yet.
Watch closely what happens in Greece. We're next. Maybe not tomorrow, but we're definitely on the list.
By the way, BlackRock Inc. is taking actions which suggest that investors should get their money out of mutual funds NOW. The crash may be much closer than most people think:
http://investmentresearchdynamics.com/blackrocks-warning-get-your-money-out-of-all-mutual-funds/
And the Economic Collapse Blog has issued a "red alert" for the second half of 2015:
http://rinf.com/alt-news/editorials/economic-collapse-blog-issued-red-alert-last-six-months-2015/
The sky's not falling yet, but it's definitely on the way down.
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