Today, 21st of October, Puerto Rico walked away from the table with bond holders. That must be nice. We all knew this was bound to happen. It was a game of brinksmanship that had already been decided long ago. The only difference is the number of sunk ships was yet to be determined. The only reason both sides kept slow playing is because the bond holders wanted to lose the fewest ships.
So, what next? Well, I don't know. If Puerto Rico loses it's credit rating, they have no ability to borrow money and restructure debt. They also have no incentive to pay back debt since it's so insurmountable it would be like putting out a forest fire with a single bucket. The next thing that is likely is a series of judgements which should prove interesting given the jurisdiction of the island and the mainland.
But as always, I see an opportunity to buy real estate. Why not? The value is intrinsic to the value of the land itself. The land sells itself. Those looking for good long term investments should still consider buying land and holding for a horizon no less than 20 years. There are many hot spots around the island. Anything close to the close will be hard to mess up.
So, what next? Well, I don't know. If Puerto Rico loses it's credit rating, they have no ability to borrow money and restructure debt. They also have no incentive to pay back debt since it's so insurmountable it would be like putting out a forest fire with a single bucket. The next thing that is likely is a series of judgements which should prove interesting given the jurisdiction of the island and the mainland.
But as always, I see an opportunity to buy real estate. Why not? The value is intrinsic to the value of the land itself. The land sells itself. Those looking for good long term investments should still consider buying land and holding for a horizon no less than 20 years. There are many hot spots around the island. Anything close to the close will be hard to mess up.
Palmas Del Mar (October 2014)
