asterisk2a + rico   4

Hedge funds tell Puerto Rico: lay off teachers and close schools to pay us back | World news | The Guardian
Report commissioned by 34 hedge funds says government had been ‘massively overspending on education’ despite spending only 79% of US average per pupil [...] The group of 34 hedge funds hired former International Monetary Fund (IMF) economists to come up with a solution to Puerto Rico’s debt crisis after the island’s governor declared its $72bn debt “unpayable” – paving the way for bankruptcy. [...] The funds are “distressed debt” specialists, also known as vulture funds [ Heuschrecken], and several have also sought to make money out of crises in Greece and Argentina, the collapse of Lehman Brothers and the near collapse of Co-op Bank in the UK. // // they are implicit in lending money to a low grade borrower and took on the risk for higher interest rates. instead of looking out for long-term productive investment that benefit society, they go for the investment by click from a Bloomberg Panel, to meet their ROI at year end for their clients, promised in their annual letter.
Wall  Street  Hedge  Fund  crony  capitalism  ethical  machine  capitalism  Greece  banking  crisis  zombie  banks  investment  banking  economic  history  moral  beliefs  ethical  beliefs  ethics  creditrating  creditrisk  IMF  austerity  production  vulture  funds  Heuschreckendebatte  Private  Equity  Opportunism  opportunist  exploitation  Worldbank  World  Bank  Puerto  Rico  financial  market 
july 2015 by asterisk2a
Puerto Rico's population swap: The middle class for millionaires - BBC News
Puerto Rico's struggling economy has led to an exodus of young people moving to the US mainland - while wealthy Americans are starting to call San Juan home. As a result, the economy and identity of both places are changing in surprising ways. [...] The island is facing a fiscal crisis with $72bn (£47.5bn) in debt. So the government is looking elsewhere for relief. It has started to lure America's super wealthy from the US East Coast. Two acts passed in 2012 guarantee no capital gains taxes and a mere 4% tax rate on their business to those who make Puerto Rico their primary residence. More than 500 eligible individuals have answered the call.
Puerto  Rico 
may 2015 by asterisk2a

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