"To Make The Payment Is Almost Impossible": Puerto Rico Defaults (Again) In T-Minus 9 Days

Earlier this month, Puerto Rico narrowly avoided default by utilizing a revenue clawback end-around to make $354 million in debt payments. Some $273 million of the total due was tied to GO debt, meaning that had the island missed the payment, a cascade of messy litigation would likely have followed. 

Subsequently, PREPA - the island’s power utility - managed to secure a deal with creditors and the monolines that will allow for the restructuring of $8.2 billion in debt. Should the agreement materialize, it would be the largest restructuring in muni history. 

Personal Income, Spending Increase By 0.3% In November As Savings Rate Dips To 5.5%

While we already knew last night courtesy of a leak by the BEA that personal spending in November rose by 0.3%, in line with expectations and up from a 0.1% increase the month before, moments ago we got the missing component, which was personal income, and at 0.3%, it too rose 0.3% in October, just above the 0.2% expected, but down from the 0.4% increase in October.

"Core" Durables Goods Orders Plunge For 10th Consecutive Month As Defense Spending Soars Most In 8 Years

"Core" Durables Goods Orders Plunge For 10th Consecutive Month As Defense Spending Soars Most In 8 Years

If it wasn't for America's war machine, the economy would be deep in recession. Defense spending (aircraft and parts) soared 148% in the last 3 months - biggest such rise since 2007 managing to squeeze Durable Goods Orders overall to unchanged in Nov (vs -0.6% exp). That's the good news. Everywhere else you look... terrible. Core Capex fell 1.93% YoY - the 10th consecutive YoY drop - something not seen before outside of recession.

 

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