Hedge funds order Puerto Rico to close schools!
“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.”