Imagine an offer you can’t refuse. No gun pointed to your head, but just plain old capitalism. A solution to a so-called insurmountable problem is in your grasp, little or no strings attached, no, this is not a deal with the devil, but a viable way out of a quagmire that you put yourself in and you refuse to sign on. Questions would arise why you walked away from the deal of the century. But we know the answers; you didn’t sign on for political reasons. And that is what got you into the mess in the first place. YOU ARE THE EQUIVALENT OF A LEECH. YOU ARE A BLOOD SUCKER, YOU ALWAYS HAVE BEEN AND YOU WILL NEVER BE ANYTHING ELSE. YOU ARE PUERTO RICO.
A backdrop: Puerto Rico began defaulting on its debts two years ago, seeking to avoid Draconian budget cuts officials said would deal another blow to an already shrinking economy. With nearly half of its 3.4 million residents living in poverty, the government sought protection from creditors in May.
The details to the agreement you refused provide insight on your thinking. And what was that proposal? PREPA, the power company that once was, is bankrupt – kaput; they have brought this on themselves, this was suicide by default; no, Hurricane Maria did not pour more water on their parade – they were drowning in their own debt, plus years of mismanagement brought them to the abyss.
Last year Puerto Rico suffered a large-scale blackout that cut power to half the island’s residents. A major power plant caught fire, damaging two large transmission sites. Prepa’s power infrastructure is dangerously out of date, reliant on dirty and inefficient oil generators for 45 percent of its energy production, compared with a 4 percent national average. Yet Puerto Rican energy costs are high, with residents paying more for electricity than Americans in any state except Hawaii. High prices and bad service are just two reasons why Puerto Rico has been losing jobs and people for a decade.
Investors did not examine Prepa’s finances before helping it go broke, though performing due diligence would have been easy: in 2013, the last year that it issued long-term bonds, Prepa warned investors in writing that it had lost money for four years in a row. “These losses reflect the continuation of a historical trend of net losses,” it added, noting that the amount it owed—then $10.8 billion—exceeded its assets by nearly $1 billion. “If this trend were to continue, the Authority’s ability to fund its operations and finance its capital program”—that is, investments in better power assets—“could be negatively impacted,” it warned potential lenders.
Because bondholders let Prepa stay in business for so long while deferring maintenance, the power company needed $4.7 billion in infrastructure upgrades even before Maria hit. To its credit, it had finally begun to explore how to be more efficient. Yet bondholders clung to the fiction that the company could repay much of its debt. To avert bankruptcy, bondholders had already agreed to 15 percent losses on the money Prepa owed; they also granted the company a debt-payment extension. It wasn’t enough.
After Maria’s emergency phase passes, Prepa must rebuild its permanent assets. Because the company was under-insured—it self-insured its distribution and transmission assets, with only $90 million set aside for that purpose—Washington will likely provide much of the money to do that. The feds should work with Puerto Rico to ensure that Prepa rebuilds effectively, especially through partnerships with successful power companies from the U.S. mainland.
Along with Puerto Rico itself, Prepa was already on the verge of bankruptcy. And in July, the power authority filed for insolvency under the custom-tailored bankruptcy law that President Obama signed last year. The company reported $11.4 billion in debt, including $8 billion in long-term bonds. Much of this debt is held by investors from the U.S. mainland, lured by tax-exempt investing incentives.
Maria did one thing right, it exposed the vulnerability of Puerto Rico and laid bare the leeches that make up the majority of its populace. Maria did a superb job of getting this latter point across. Congress created a new board to oversee the restructuring of Puerto Rico itself, Promesea; the new kid on the block, a stalwart with a socialist mentality, with a mindset to screw the existing bondholders of Puerto Rico and the debt holders of PREPA. In other words they were set up to rule and set rules and break contracts and violate the Constitution. They were the law West of the Pecos.
Remember, Puerto Rico laready turned down an offer to good to refuse. Prepa bondholders offered to exchange $1 billion in debt for $850 million and $1 billion in new cash. REJECTED out of hand. Governor Rossello, the political lackey to say the least, has more excuses for failure than the opioids filling the veins of its citizens.
Thanks a lot for sharing this with all of us you really know what you are talking about! Bookmarked. Kindly also visit my website =). We could have a link exchange arrangement between us!
I’ve been exploring for a little bit for any high-quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this site. Reading this info So i am happy to convey that I have a very good uncanny feeling I discovered exactly what I needed. I most certainly will make certain to do not forget this web site and give it a look on a constant basis.
Generally I don’t read post on blogs, but I wish to say that this write-up very forced me to try and do so! Your writing style has been amazed me. Thanks, very nice post.
This really answered my drawback, thank you!
Good website! I really love how it is easy on my eyes and the data are well written. I am wondering how I might be notified when a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a nice day!
obviously like your web site however you have to take a look at the spelling on quite a few of your posts. Several of them are rife with spelling problems and I in finding it very bothersome to inform the reality nevertheless I’ll certainly come again again.
I am very happy to read this. This is the kind of manual that needs to be given and not the accidental misinformation that’s at the other blogs. Appreciate your sharing this best doc.
Wonderful work! This is the type of information that are supposed to be shared across the internet. Shame on the search engines for not positioning this put up upper! Come on over and consult with my site . Thank you =)
I together with my pals happened to be checking the nice helpful hints found on the website and so all of the sudden got a terrible feeling I never thanked the web site owner for those techniques. My men had been so excited to read through them and have honestly been using these things. Thank you for truly being considerably accommodating as well as for obtaining some wonderful tips most people are really desirous to learn about. My very own honest regret for not expressing gratitude to sooner.
Would you be fascinated about exchanging links?
Aw, this was a really nice post. In concept I want to put in writing like this additionally – taking time and precise effort to make a very good article… however what can I say… I procrastinate alot and not at all seem to get something done.
Have you ever considered about including a little bit more than just your articles? I mean, what you say is valuable and all. But imagine if you added some great graphics or video clips to give your posts more, “pop”! Your content is excellent but with images and videos, this website could definitely be one of the most beneficial in its field. Awesome blog!
With havin so much written content do you ever run into any issues of plagorism or copyright infringement? My blog has a lot of unique content I’ve either written myself or outsourced but it appears a lot of it is popping it up all over the internet without my agreement. Do you know any solutions to help prevent content from being ripped off? I’d definitely appreciate it.
I do not even know how I ended up here, but I thought this post was great. I do not know who you are but definitely you are going to a famous blogger if you are not already 😉 Cheers!
I am continually browsing online for articles that can assist me. Thx!
magnificent points altogether, you just gained a brand new reader. What would you suggest in regards to your put up that you just made some days ago? Any positive?
I have been absent for a while, but now I remember why I used to love this blog. Thank you, I will try and check back more frequently. How frequently you update your website?
Hello very nice site!! Man .. Beautiful .. Amazing .. I will bookmark your website and take the feeds additionally…I’m glad to find a lot of useful info here in the put up, we’d like develop extra strategies on this regard, thanks for sharing. . . . . .
Thank you for some other wonderful post. Where else may anybody get that type of info in such a perfect means of writing? I’ve a presentation subsequent week, and I’m on the search for such information.
This website online is really a walk-by means of for all the data you needed about this and didn’t know who to ask. Glimpse here, and you’ll definitely uncover it.
After research just a few of the weblog posts on your website now, and I truly like your manner of blogging. I bookmarked it to my bookmark website listing and might be checking again soon. Pls check out my website online as well and let me know what you think.
Well I sincerely enjoyed reading it. This information offered by you is very effective for good planning.
Very nice post. I just stumbled upon your weblog and wanted to say that I have really enjoyed surfing around your blog posts. After all I will be subscribing to your feed and I hope you write again very soon!
An fascinating dialogue is value comment. I think that you must write more on this topic, it won’t be a taboo topic but generally persons are not enough to speak on such topics. To the next. Cheers
I’m not that much of a online reader to be honest but your sites really nice, keep it up! I’ll go ahead and bookmark your website to come back down the road. Cheers
761522 107266Even though you are any with the lucky enough choices, it comes evidently, while capture the fancy of the particular coveted by ly folks other beneficial you you meet could possibly effectively have hard times this certain dilemma. pre owned awnings 586020
Today, I went to the beach front with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!
554400 402576extremely good publish, i undoubtedly love this web website, maintain on it 996241
Some really choice blog posts on this internet site , saved to favorites .
[url=https://streamhub.world/]streamhub[/url]
woh I am delighted to find this website through google.
I enjoy the efforts you have put in this, thanks for all the great content.
Thanks so much for the blog article.Much thanks again. Awesome.
[url=https://streamhub.world/tr/]Izleyicileri artД±rД±n Twitch[/url]
756656 741373Wohh just what I was searching for, thanks for putting up. 405881
591264 210642Sweet internet site, super style and style , genuinely clean and use friendly . 596288
That’s very good point