Price of Puerto Rican bonds is finally dropping into the toilet. About time. Early in 2015 a Puerto Rican bond was selling on the street for 95 cents on the dollar. This price drifted down gradually thru out 2015, 2016, and most of 2017. It had reached 65 cents on the dollar by this summer. Only this fall did the price dive down to 30 cents on the dollar.
In actual fact, Puerto Rico doesn't have the money to pay off a nickel of the $93 billion that Wall St bankers were stupid enough to loan them over the years. It's been obvious for twenty years that Puerto Rico didn't have, and could not get, the money to pay off any of its loans. And yet, those clever Wall St banks kept loaning Puerto Rico more money. And trading Puerto Rican securities and bonds back and forth among themselves as if these securities were actually worth something. They aren't.
The amazing thing. The Wall St bankers only figured things out in the last few weeks. You gotta wonder where these people went to school.
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