Hedge
funds order Puerto Rico to close schools!
globinfo
freexchange
“Puerto
Rico went into default Monday for the first time in its history. The
island's governor, Alejandro Garcia Padilla, has announced a "working
group" to figure out a plan by the end of the summer. But a
group of 34 hedge funds, led by Fir Tree Partners, already have a
recommendation. They funded a report by three economists that calls
for Puerto Rico to close some schools, reduce university subsidies
and fire teachers so it can pay back its debt. [...] The
34 hedge funds who commissioned the report by are calling themselves
the "Ad Hoc Group of Puerto Rico." They own about $5.2
billion of the island's $70 billion in outstanding debt.”
(http://money.cnn.com/)
Only
less than 24 hours later, our article How
the vultures of hedge funds 'maul' the indebted states
has
completely confirmed:
“A
brutal command launched a few days ago by the holders of government
bonds to a government which had issued these bonds: proceed in
layoffs and sell off public property to pay us. This command reminds
us something, not because it concerns Greece, but because the brutal
principals are largely the same people who took advantage of the
Greek debt and used invariant commands to maximize their profit.”
“...
the vultures-investors are not interested in economic reconstruction
plans, and are not touched by the increasing poverty of the
population, but are aimed at direct and largest profit as possible -
because this is the only reason for their existence. They require the
imposition of austerity measures to collect the funds necessary to
repay bonds in their possession. Behind
these speculative moves we find frequently the same 'usual suspects.'
A total of 35 hedge funds exploit the debt of Puerto Rico: 15 of them
have also exploited the debt of Argentina, 13 the debt of Greece and
7 the debt of the state of Detroit. These investors made great
fortunes by exploiting state crisis and some of them vehemently
fought every effort to restructure the Greek debt in 2012.”
Comments
Post a Comment