This is a syndicated repost published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
Puerto Rico is an example of Darkness on the Edge of Town (or the USA). Electricity on the island is coming back, but much of it was knocked out by the hurricane.
Puerto Rico’s Commonwealth bonds have fallen in price … again. Consider the 5.75% coupon bond. The already defaulted bond has been trading at under $60, but has now fallen to $33.45 on the deadly hurricane strike.
While the media and political hacks scream “Trump’s fault!” (Much like “Jerry’s fault!” on Parks and Recreation), Puerto Rico’s $34 bond has been a long time in the making. Corruption, overspending and a declining population led to Puerto Rico’s bond default in May of $70 billion of obligations, long before the hurricane struck.
Puerto Rico is truly “Darkness on the Edge of … the USA.”
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
