“Not payable.”

“Not payable.”  So says the governor of Puerto Rico, about the island's $72B in debt.  The threat of a default looms.  The governor is actively looking for creditors to accede to restructuring, including deferrals and write-downs.  He's also looking for a (U.S.) taxpayer-funded bailout, which isn't likely.

Puerto Rico – as many have predicted it would – has run out of other people's money.  The socialists have ruined another economy.  There are quite a few parallels to the current Greek crisis, but this one is much closer to home.  Though many Americans don't know it, Puerto Rico is actually part of the United States.  It's a Commonwealth, not a state, though there is rising support in Puerto Rico to become a state.

It will be interesting, and instructive, to see what the Obama administration's reaction to this is...