Puerto Rico’s Solution

Imagine a World

Jurassic World hit the $1 billion mark by June 25, only 13 days after its debut in theaters. Yea, ridiculous. Imagine what a real life Jurassic World could bring in revenue. We’re talking Disney money. All we need is the perfect location—ah, but of course, Puerto Rico!

The gorgeous terrain has not been able to keep Puerto Rico’s economy from tanking in the last eight years. The island’s Gross Domestic Product and Gross National Product (we’ll break these down later) has seen negative growth. The expansion of government programs and Uncle Sam’s cash injections have only backed the economy into a corner, and, as a result, the government is about to default on $72 billion worth of government debt.

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Is Financial Regulation the Answer?

The Good Ole Days

The financial crisis of 2008 was a scary time in the U.S. Although the early half of Gen-Y had a hard time getting a job after graduation, a large portion of millennials didn’t really suffer feelings of despair, since most were still in their teens and early 20s. We didn’t have to experience first-hand our asset values melting like soft-serve on a hot, sunny day. As for bankruptcy, job loss, and car repossessions — not our style, not our time.

In order to correct the mistakes that precipitated the financial crisis of the Great Recession, the government passed the Dodd–Frank Wall Street Reform and Consumer Protection Act, effectively appointing referees to call out the banks when they step out of bounds or commit a foul against the consumer. In the five years since the Dodd-Frank Act became law, financial stability has increased, but the effects of heavy regulation are starting to seep through the cracks. Unfortunately, those unintended consequences may hinder economic growth, which has been harder to find of late than a politically correct statement from a billionaire real estate mogul with a combover — but I’m not naming names.

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The Roots of the Greek Debt Crisis

A lot of massaging of the index. Greece has been the EU’s charlatan, and one thing we all know about charlatans. Is that when they’re caught, it’s not pretty. This is going to be a rough time for Greece.

Longreads

The crisis in Greece is getting worse. Its people on July 5 voted against the terms of the most recent bailout deal in a referendum, rejecting austerity. If a new deal isn’t reached soon, its government won’t be able to pay its debts and will run out of euros, which many expect it will mean exiting the euro zone. This 2010 Michael Lewis classic for Vanity Fair, “Beware of Greeks Bearing Bonds,” helps explain the current situation:

For most of the 1980s and 1990s, Greek interest rates had run a full 10 percent higher than German ones, as Greeks were regarded as far less likely to repay a loan. There was no consumer credit in Greece: Greeks didn’t have credit cards. Greeks didn’t usually have mortgage loans either. Of course, Greece wanted to be treated, by the financial markets, like a properly functioning Northern European country. In…

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It Is About That Time To Get Engaged

Have you ever felt excited to go to work? I have, but the minute I get there, a sudden feeling of resentment rushes over me. I get these thoughts of running away; disappearing to another state, country, continent; living off of crabs and coconuts on a beach, somewhere my bosses or my debt collectors can’t reach me. But you gather yourself, give yourself a half-assed pump up and you face your sorrows by responding to the casual work salutation, “Hey, how’s it going?” with a bitter “Oh, you know, just another day in paradise!”

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