It turns out that Puerto Rico's plan to default on its debt and beg congress for help is working out as planned.
After a slight delay, House Republicans have reached an agreement with the Obama administration to provide a path to restructure Puerto Rico's $70 billion debt load. The bill would offer the island a legal out similar to bankruptcy and wouldn't commit any federal money according to the WSJ.
In an interview with Wolf Blitzer, Donald Trump said that although he is the "king of debt", and that he "loves debt", he wouldn't bail out Puerto Rico.
Responding to whether or not Trump would bail out Puerto Rico as president of the United States...
In a disappointingly similar tone to the warnings, threats, and promises sent to Congress in 2008 when demanding the banks get their bailout (or else), Treasury Secretary Jack lew has released a letter he sent to Congress warning that if Puerto Rico's situation is not "fixed" in an "orderly" manner "quickly" then the nation will face "cascading defaults."
It has been a busy weekend for mostly negative newsflow.
Yesterday, in the latest plot twist surrounding the inevitable Puerto Rico default, we observed that after the commonwealth island's Senate passed a surprising bill to impose a debt moratorium on any future debt repayment, its bonds - predictably - tumbled.