Originally aired live on Al Jazeera America January 2, 2015.
Due to licensing issues, I can’t post the entire interview (in fact, not entirely sure I can even post this segment), but here goes. On Monday January 4th, the government of Puerto Rico again defaulted on a portion of its debt obligations. This is only the second time in PR’s history that it has defaulted and the first time it has defaulted to such a large extent, while it also provided signals that it may have to continue to do so in the future.
In this segment, Cate Long of Puerto Rico Clearinghouse and I discuss the implications for bondholders, U.S. financial markets, average investors, Puerto Ricans, and the overall Puerto Rican economy. Below you can find a short clip of my discussion on Puerto Rico’s declining population as well as creditors’ (and Congress’) frustrations with Puerto Rico’s lack of fiscal transparency.