Monday, September 17, 2018

What Would Be a Radical But Sound Approach to Handling Puerto Rico’s Huge Debt?

Justin Raimondo writes:
Trump’s unwillingness to bail out investors in stricken Puerto Rico’s huge debt - like Seth Klarman, the latest antiTrump warrior - evokes the radical libertarian call of theorist Murray Rothbard to repudiate government debt as an illegitimate contract



Raimondo continues:
The sudden addition of oligarch Seth Klarman to the visible ranks of the Resistance  … is linked to his ownership of Puerto Rico’s debt

The Intercept reports:
 FOR YEARS, THE identity of the owner of one of the largest holdings of Puerto Rican debts has been a mystery.
That mystery has finally been solved, with the help of the The Baupost Group, who unmasked themselves to The Intercept. The Baupost Group, a Boston-based hedge fund managed by billionaire Seth Klarman, owns nearly $1 billion of Puerto Rican debt, purchased under a shell company subsidiary and hidden from public scrutiny. Baupost acquired the debt through an on-paper Delaware-based corporation named Decagon Holdings LLC, whose beneficial owner had been unknown until now.
“The Baupost Group is a holder of COFINA bonds through the Decagon entities,” said Baupost spokesperson Diana DeSocio. “Baupost regularly makes investments through subsidiary holding entities.”
-RW  

1 comment:

  1. Default seems like a radical solution to the modern world. There was a time if you loaned money to people you made sure they could pay it back first. It's called common sense.

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