Puerto Rican Problem

Since special federal manufacturing tax breaks were eliminated in 2006, Puerto Rico’s economy has shrunk by 16% and its population by almost 4%. Worse, with $70 billion in bonds outstanding (more than all but NY and CA) there is fear PR may default. With a debt/personal income ratio of an amazing 89%, compared to 10% for Hawaii (the worst of all 50 states), it’s no surprise PR bonds yield 9%!

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