Just Print Some More Money!–US Is Urged to Bail Out Puerto Rico’s Bankrupt Economy

It seems the Obama Administration is in the business of printing money.  Today it was announced that the President is urging Congress to give the Island of Puerto Rico a handout to help them not go bust before the end of the year.  The bankruptcy protection offered to Puerto Rico is of some special type that is not available to the 50 states. Here’s the report from The Washington Post: With Puerto Rico buried in debt and on course to completely run out of money by the end of the year, the Read more […]

Social Security Admits It Can’t Meet Its Obligations

It actually wrote about it in its letter assuring people about their Social Security benefits. In my opinion, people are affected by the size and seeming grandeur of the United States, including its government, in the same way passengers were affected by the size and grandeur of the Titanic. No matter how big the approaching ice berg is, they simply cannot believe the ship can sink. But it will sink like a stone. Myra Adams writes in the National Review about receiving her Social Security Read more […]

Puerto Rico Is Our Greece and More Fallout Is Coming

Puerto Rico has AT LEAST $73 Billion in debt and they can’t pay it back. Puerto Rico has economic disadvantages. Energy prices are high and there are other challenges. So what did Congress do? Congress made Puerto Rican bonds available completely tax free. This should have caused an immediate alarm to investors. After all, if Congress is doing special favors to make bonds look attractive, then that must mean that Puerto Rican bonds are otherwise unattractive. In many cases reducing taxes Read more […]

Why Is Student Debt Exempt from Bankruptcy?

Megan McArdle suggests that allowing student debt to be discharged in bankruptcy along with all other debt would be a good idea if done right. I realize there are arguments that we should not even allow bankruptcy. It seems to be a way of getting away with not paying the people to whom you owe money. The only reasonable answer to that accusation is that, if people can’t pay back a loan, then we should acknowledge that they never will repay a loan. Bankruptcy can be abused, but it is a Read more […]

All Michigan Residents Are Being Hit Up for Detroit’s Financial Failure

Detroit had many good years. People found jobs there and wanted to locate there rather than anywhere else in Michigan. Now that is no longer the case. But there was a time when many locations in Michigan could not attract businesses to their areas because they could not offer all that Detroit had to offer. So now these places that lost business to Detroit are going to be forced to help out Detroit. From the Detroit Free Press: “Gov. Rick Snyder ‘looking forward’ to bill signing Friday to Read more […]

Is Puerto Rico the Next Detroit?

I have been waiting for Illinois to be the first state to be forced into bankruptcy, and it may still win that race. But, while watching cities race toward bankruptcy, I had forgotten that there are other entities that are larger than counties but not the same as states—U.S. Territories. From the New York Times Dealbook blog: Puerto Rico’s fiscal agent has hired another well-known restructuring law firm, raising the specter that the financially troubled island is preparing to revamp its finances. The Read more […]

Another Bankrupt City Can’t Afford Its Unions

It isn’t just Detroit or Stockton, California. It is happening everywhere. The Las Vegas Sun reports, “North Las Vegas mayor asks for more time to fix city’s finances.” North Las Vegas has a little more than a month to solve an $18 million budget deficit it’s facing or risk intervention from the state to help fix its finances. During a hearing today, members of the Committee on Local Government Finance told city officials they wanted to see a clear plan for closing the city’s deficit Read more […]

Charles Krauthammer Confirms Coming Insurance Bailout

Since I posted about this back when Megyn Kelly first brought national attention to the story, I think it is good to point out confirmation about the implications I spelled out. Charles Krauthammer recently declared that a bailout of the insurance companies is the inescapable plan of Obamacare. From CNS News: President Obama, by issuing new rules that erode Obamacare’s “financial structure,” is putting the health insurance industry – and taxpayers – at risk, author and conservative political Read more […]

Federal Judge: Detroit Can Declare Bankruptcy, Pensions Up For Grabs

Municipal bonds are supposedly safe because the city promises to squeeze taxpayers as much as possible to pay on the bonds. Not anymore. At one time one could expect great pension benefits if you belonged to a public union. No longer. (Reuters) – Detroit is eligible for the biggest municipal bankruptcy in U.S. history because the city is broke and negotiations with its thousands of creditors were unfeasible, a federal judge said on Tuesday in a wide-ranging ruling that also said the city Read more […]

Are Cities The Next Federal Bailout? Why All Public Debt Is Immoral

Megan McArdle asks, “Should We Bail Out Cities.” I am not posting about this to commend her answer (though she is right). I’m posting about it because she felt the need to address the issue. It’s going to happen. In the latest City Journal, Steve Malanga writes about an issue that hasn’t yet gotten a lot of attention but is virtually guaranteed to become a serious topic of national debate in the not-so-distant future: Do we bail out cities that have become insolvent? Let that sink Read more […]

Obama Sneaking Pay Raise For All Non-Military Federal Employees

Need I say that our nation is still in an economic crisis, regardless of what the White House says?  Prices in the stores are still going up and incomes are not.  The housing market is supposedly improving, but in many areas, for sale signs are sitting in front yards for months and even years.  Jobs are still a scarce commodity, especially full time jobs.  A recent report stated that 750,000 jobs out of the last 1 million were for part time work.   Home foreclosures and bankruptcies are still Read more […]

Detroit Hockey Arena More Important Than Residents’ Safety

A couple of weeks ago, I wrote about the financial problems facing Detroit and their attempt to file bankruptcy, only to have it blocked by a misguided judge.  After facing over 50 years of Democratic leadership, Detroit is facing a debt of $18 – $20 billion.  Their situation is so bad that: 40% of the streetlights don’t work 210 of the 317 public parks have been permanently closed Nearly 1/3 of buildings are abandoned It takes police nearly an hour to respond to a 9-1-1 call Some Read more […]