PR's economic meltdown and the Federal government's solution  

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OldTart
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May 23, 2016 11:51 am  

http://viconsortium.com/virgin-islands-2/congress-white-house-reach-deal-on-p-r-debt-plaskett-concerned-as-v-i-is-tied-to-package/

PR’s economy has tanked, its debit is massive and at the point of no return or recovery, and the Federal government had no option but to come up with a plan to enable the commonwealth to climb out of the hole. Federal oversight is obviously key.

Why should the territories not be included in the plan? The USVI at least has proven without a doubt that it’s incapable of being self-supporting and its debt and insolvency continue to rise with no end in sight.

Mr Mapp and Ms Plaskett are indignantly foaming at the mouth but why? The territory’s financial situation isn’t in immediate danger of collapse and the escape route isn’t something which would be entered into lightly. But where’s the fear coming from? If the VI government properly manages its financial affairs and avoids the catastrophic situation that PR ended up in, no escape clause and Federal oversight will be necessary. If it ever came to the point that it was, then the option to exercise the terms of the agreement is there in the wings.

It seems at face value that the governor and the delegate have something to hide from the Federal government at all costs. Rather than accepting the measure as an incentive to buck up and curtail the continual borrowing pattern, hoot and holler.

Ah, Federal oversight – how scary is that!


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Spartygrad95
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May 23, 2016 12:26 pm  

The federal government creates many of the problems then wants oversight? Ok. I guess


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ms411
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May 23, 2016 12:32 pm  

There was a reasonable explanation somewhere, and it wasn't about federal oversight. I'll see if I can find it.


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OldTart
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May 23, 2016 12:40 pm  

The "reasonable" explanations were all outlined in the news article.


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JohnnyU
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May 23, 2016 12:49 pm  

The federal government creates many of the problems then wants oversight? Ok. I guess

Lets absolve PR of any responsibility

I thought you wanted Government controlled Healthcare?

That being said, being stupid should hurt. People should be going to jail and Wall St should be losing their ass, but it will be the "Little Guy" getting the shaft


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Spartygrad95
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May 23, 2016 1:07 pm  

The federal government creates many of the problems then wants oversight? Ok. I guess

Lets absolve PR of any responsibility

I thought you wanted Government controlled Healthcare?

That being said, being stupid should hurt. People should be going to jail and Wall St should be losing their ass, but it will be the "Little Guy" getting the shaft

One can advocate for universal healthcare and for territories getting shafed by federal government. They aren't mutually exclusive. I don't have any party affiliation or ideology that I am worried I will offend. The little guy always gets the shaft. Sounds like a good time for your feelings on the Home Depot worker in NY getting flak for weans the America Was Never Great hat? More government regulation would be good for let's say the dietary supplement industry, less government regulation would be good for Biotech industry.


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JohnnyU
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May 23, 2016 1:33 pm  

One can advocate for universal healthcare and for territories getting shafed by federal government. They aren't mutually exclusive.

How exactly are they being “shafted”? Federal gov is the reason healthcare is a shitshow.

They do show a willingness to use the power of the Federal Government in situations that are in line with your preferences

I don't have any party affiliation or ideology that I am worried I will offend.

Strawman and LOL

Sounds like a good time for your feelings on the Home Depot worker in NY getting flak for weans the America Was Never Great hat?

Don’t really care. Its between him, his employer and their clientele.

More government regulation would be good for let's say the dietary supplement industry, less government regulation would be good for Biotech industry.

Why shouldn’t someone be responsible for what they put into their body?

Agree on getting stuff to market faster on the biotech side


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ms411
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May 23, 2016 1:38 pm  

They are concerned with more than just federal oversight. There is concern that interest rates on debt issued to all the territories may be increased, because of the potential for restructuring.

“In the past, the bond market has taken into account the fact that bankruptcy is not an option for territories as a legal security positive fact and it was factored into bondholders’ investment decisions,” she noted. “In the future, if the language in this bill remains, the Virgin Islands can expect some investors to have apprehensions when considering whether or not to purchase Virgin Islands bonds, because of this new option to adjust debts. Because of the increased risk to investors, another ramification may be that some borrowing might become significantly more expensive in the form of higher interest rates, which in turn will mean higher cost to the territory to borrow,” Ms. Plaskett said.

The Virgin Islands has not yet defaulted on its debt, and based on an article posted in this forum last year, I think, an investment manager gave detailed reasons as to why he avoided Puerto Rican bonds for his portfolio but does invest in VI revenue bonds. He considers the revenue bonds a more stable investment because they are not backed by "the full faith and credit of the VI government".

They are trying to rush the bill through before the July deadline, and it seems as though they're assuming all the other territories will eventually be in the same boat as PR. If that's a case, it will be very costly to all the territories, and if you think we're not getting services now, things will get a lot worse. They are trying to partially appease the investors and the people on the islands will suffer dearly.


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Alana33
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May 23, 2016 1:52 pm  

Maybe the VI Government will learn to BUDGET, pay their bills and stop increasing debt by controlling the wasteful spending, fraud, theft and mismanagement that is rampant in our islands.


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ms411
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May 23, 2016 2:15 pm  

Maybe the VI Government will learn to BUDGET, pay their bills and stop increasing debt by controlling the wasteful spending, fraud, theft and mismanagement that is rampant in our islands.

ROTFLMAO! Very few other governments do, so why should VI be any different?


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Alana33
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May 23, 2016 2:43 pm  

Considering we've been listed as being the second most corrupt, it would be a start.


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Spartygrad95
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May 23, 2016 2:58 pm  

Considering we've been listed as being the second most corrupt, it would be a start.

Who listed VI as second most corrupt? This is disappointing. Like when the VI became number 2 in chlamydia. Second is first loser. Try harder


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Alana33
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May 23, 2016 5:00 pm  

Where's the emoji for "stick it?"


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keo
 keo
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May 23, 2016 5:06 pm  

Where's the emoji for "stick it?"

(tu):-o

It takes no more time to see the good side of life than it takes to see the bad.
-Jimmy Buffett


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Spartygrad95
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May 23, 2016 5:18 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?


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LiquidFluoride
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May 23, 2016 5:19 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?

there's No way Monsanto beat Google....

There was a [URL="http://blogs.law.harvard.edu/abinazir/2011/06/15/what-are-chances-you-would-be-born/"]1: 400,000,000,000,000[/URL] chance of you being born: what have you done with your miraculous life today?


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OldTart
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May 23, 2016 5:24 pm  

What a relief that this news has prompted such thoughtful responses - so many threads just go so off-topic so quickly. :@)


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Gator's Mom
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May 23, 2016 5:26 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?

https://www.washingtonpost.com/blogs/govbeat/wp/2014/01/22/the-most-corrupt-states-in-america/

It's not so clear cut if you reference this Washington Post article.

Note the article is over 2 years old.


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Spartygrad95
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May 23, 2016 5:29 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?

there's No way Monsanto beat Google....

According to Natural News they did

http://www.ibtimes.com/monsanto-named-2013s-most-evil-corporation-new-poll-1300217

They'd never vote Google, that's where all their readers got their degrees from


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Spartygrad95
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May 23, 2016 5:33 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?

https://www.washingtonpost.com/blogs/govbeat/wp/2014/01/22/the-most-corrupt-states-in-america/

It's not so clear cut if you reference this Washington Post article.

Note the article is over 2 years old.

Not so clear cut is understatement. So are we 2nd most corrupt territory? 2nd most corrupt member of US? World?


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CruzanIron
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May 23, 2016 5:36 pm  

Though the headline says country, the ranking is by state

http://vifreepress.com/2015/10/report-virgin-islands-is-no-2-in-the-country-in-public-corruption-only-d-c-is-better/


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Spartygrad95
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May 23, 2016 5:39 pm  

Though the headline says country, the ranking is by state

http://vifreepress.com/2015/10/report-virgin-islands-is-no-2-in-the-country-in-public-corruption-only-d-c-is-better/

That isn't what the table even shows. It shows guilty verdicts of public officials per capita. That is a bit of a stretch to take on table of data and come to that headline


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caribstx
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May 23, 2016 5:40 pm  

I'm being serious. Who ranked us #2 in corruption? Is this like the Natural News poll who ranked Monsanto "most evil company"?

there's No way Monsanto beat Google....

Why is Google considered the most evil?


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speee1dy
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May 23, 2016 5:49 pm  

i thought comcast was most evil


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OldTart
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May 23, 2016 5:51 pm  

I have half a dozen loaves of bread baking in the oven and I think that says a lot about the whole state of affairs.


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