4 ms·

It is different because it's not a state, can't declare bankruptcy, and has limited options for getting representation. Detroit declared bankruptcy. Puerto Ric

It is different because it's not a state, can't declare bankruptcy, and has limited options for getting representation. Detroit declared bankruptcy. Puerto Rico cannot.

alexanderstears 9y ago
States can't declare bankruptcy, cities can.
- voidlogic 9y ago
  States can actually dismiss debt as sovereign entities. That doesn't protect them from the consequences.. for example no one loaning them money in the future. But they can do it.
  - alexanderstears 9y ago
    States can't use federal bankruptcy courts to restructure their obligations and are Constitutionally prohibited from 'impairing the obligation of contracts'. How can U.S States dismiss debt as sovereign entities? They can probably refuse to pay it but the debt holders would have a solid case to get judicial relief.
    - voidlogic 9y ago
      https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_United_States https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_Unit...
      - alexanderstears 9y ago
        That's a mechanism that might extend bankruptcy to the States at some point, but American States have always paid their debts to the financial market.
        voidlogic 9y ago
        >American States have always paid their debts to the financial market. I don't contest that, but what I am saying is, like National governments they can dismiss their debt. Although, of course they would have non existent credit after such an event. The States unlike some European governments are not used to functioning in the absence of borrowing.
comex 9y ago
True, but last year a law was passed (PROMESA) specifically to allow Puerto Rico to enter a court-supervised bankruptcy-like process, and it has done so. See also: https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html https://www.nytimes.com/2017/05/03/business/dealbook/puerto-...
- astrodust 9y ago
  Interesting. I'd read about their struggles over the last few years and how they were legally hemmed in, so it's good to see there's some way out of this mess. It's still astonishing and borderline criminal that citizens in Washington D.C. and territories like Puerto Rico have nearly zero federal representation. The American flag in World War II had only 48 stars, it's not even the same as the current flag, so if that can change, what's wrong with two more stars?

It is different because it's not a state, can't declare bankruptcy, and has limited options for getting representation. Detroit declared bankruptcy. Puerto Rico cannot.

alexanderstears 9y ago

States can't declare bankruptcy, cities can.

voidlogic 9y ago
States can actually dismiss debt as sovereign entities. That doesn't protect them from the consequences.. for example no one loaning them money in the future. But they can do it.
- alexanderstears 9y ago
  States can't use federal bankruptcy courts to restructure their obligations and are Constitutionally prohibited from 'impairing the obligation of contracts'. How can U.S States dismiss debt as sovereign entities? They can probably refuse to pay it but the debt holders would have a solid case to get judicial relief.
  - voidlogic 9y ago
    https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_United_States https://en.wikipedia.org/wiki/Sovereign_immunity_in_the_Unit...
    - alexanderstears 9y ago
      That's a mechanism that might extend bankruptcy to the States at some point, but American States have always paid their debts to the financial market.
      - voidlogic 9y ago
        >American States have always paid their debts to the financial market. I don't contest that, but what I am saying is, like National governments they can dismiss their debt. Although, of course they would have non existent credit after such an event. The States unlike some European governments are not used to functioning in the absence of borrowing.

comex 9y ago

True, but last year a law was passed (PROMESA) specifically to allow Puerto Rico to enter a court-supervised bankruptcy-like process, and it has done so. See also: https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html https://www.nytimes.com/2017/05/03/business/dealbook/puerto-...

astrodust 9y ago
Interesting. I'd read about their struggles over the last few years and how they were legally hemmed in, so it's good to see there's some way out of this mess. It's still astonishing and borderline criminal that citizens in Washington D.C. and territories like Puerto Rico have nearly zero federal representation. The American flag in World War II had only 48 stars, it's not even the same as the current flag, so if that can change, what's wrong with two more stars?