tlm724 "The agenda of the [Parliament] session number (2) Thursday 2 July 2015: Sixth: The second reading of the draft Islamic Banking Act. ( Finance Committee , the Committee of Religious Endowments and Religious Affairs , the Legal Committee ), (16 articles)."
So we have the second reading of the Islamic Banking Act and meetings back to back!
One session on the 1st and one on the 2nd. *hallelujah.
IKO Ward: Lets see, what have we learned today, Greece is done, the DOW is climbing, Iran got a seven day extension, the CBI plans to do international exchange on Thursday, and how to get a stick ring off your finger. Power to the people
Crusty: Just thinkin out loud -- Int. exchange by CBI , Iraq lottery both on Thur. and Greece done in 2 hrs !! Sounds like RV VERY close should be done before that other stuff ????
[xyz] BREAKING NEWS: Greece defaults on $1.7 billion IMF payment http://money.cnn.com/2015/06/30/news/economy/greece-imf-default/index.html
Knight Hawk: Greece default from Rueters http://www.reuters.com/article/2015/06/30/us-eurozone-greece-idUSKBN0P40EO20150630
Thunderhawk » June 30th, 2015, Backdoc Alert
VIDEO: Puerto Rico’s governor says island cannot pay back $70 billion in debt, is near ‘death spiral’
he governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States.
Puerto Rico’s move could roil financial markets already dealing with the turmoil of the renewed debt crisis in Greece. It also raises questions about the once-staid municipal bond market, which states and cities count on to pay upfront costs for public improvements such as roads, parks and hospitals.
[Puerto Rico, with at least $70 billion in debt, confronts a rising economic misery]
For many years, those bonds were considered safe investments — but those assumptions have been shifting in recent years as a small but steady string of U.S. municipalities, including Detroit, as well as Stockton and Vallejo in California, have tumbled into bankruptcy.
Those defaults at least offered investors the protection provided by Chapter 9 of the U.S. bankruptcy code, which sets out an orderly process by which investors can recoup at least some of their money. But like states, Puerto Rico is not permitted to file for bankruptcy. A failure to iron out an agreement with creditors could ignite an unwieldy, uncharted and long-lasting process to sort out the island’s financial obligations.
In addition, with as much as $73 billion in debt, the island’s debt obligation is four times that of Detroit, which became the largest U.S. city to file for bankruptcy in 2012.
The implications are serious for Americans outside Puerto Rico largely because many hold island bonds in mutual funds. At one point in 2013, an estimated three out of four municipal bond mutual funds held Puerto Rican bonds, which were attractive because of their high yields and exemption from federal, state and local taxes.
Puerto Rico’s governor, Alejandro Garcia Padilla, will seek concessions from creditors, which range from mutual funds in the United States to large hedge funds that have been buying Puerto Rican debt at high interest rates, in an effort to stretch out loan payments and drive down borrowing costs that are hamstringing Puerto Rico’s struggling economy.
[Can bankruptcy save Puerto Rico’s state-run corporations?]
On Monday, the governor and Puerto Rico’s government development bank released a report analyzing the island’s finances written by former World Bank chief economist and former deputy director of the International Monetary Fund Anne Krueger and economists Ranjit Teja and Andrew Wolfe.
“The report...for the first time acknowledges the true extent of the problem,” said Garcia Padilla in a statement Monday. “We must make difficult decisions to meet the challenges we now know are ahead, and I intend to do everything in my power to lead us through this time.”
The government’s conclusion that it is unable to pay its debts was first reported by the New York Times. “It’s accurate,” said Gabriela Melendez, a Washington-based spokeswoman for the Puerto Rican government. She said the governor was scheduled to make a televised address updating islanders about Puerto Rico’s fiscal crisis Monday evening.
“My administration is doing everything not to default,” Garcia Padilla said in an interview with the New York Times. “But we have to make the economy grow. If not, we will be in a death spiral.”
A U.S. commonwealth with a population of 3.6 million, Puerto Rico carries more debt per capita than any state in the country. The island has been staggering under the increasing weight of those obligations for years as its economy has tanked, triggering an exodus of island residents to the mainland not seen since the 1950s.
Meanwhile, the government has raised taxes, cut government employment and slashed pensions in a futile effort to get its debt burden under control. Those actions have only slowed the acceleration of debt creation, while harming efforts to reignite the economy.
The financial crisis in Puerto Rico has been playing out for years, although until now the government has been able to keep things moving by cutting spending and borrowing more and more money on Wall Street. But with rating agencies downgrading Puerto Rican debt to near-junk levels, the island has had to pay high rates to borrow money.
“What will happen is that our economy will get into a worse situation and we’ll have less money to pay them,” the governor said in the New York Times interview. “They will be shooting themselves in the foot.”
The island’s web of debt includes general-obligation bonds, which Puerto Rico’s constitution says must be repaid even before government workers receive their pay.
But billions of dollars more in bonds were floated by public corporations that provide critical services on the island, including providing electric power, building roads and running water and sewer authorities. Beyond the bond debt, the island owes some $37 billion in pension obligations to workers and former workers.
Puerto Rico has been pushing for Congress to grant bankruptcy protection for its public corporations, but that legislation has gone nowhere.
Thunderhawk » June 30th, 2015, Backdoc Alert
Puerto Rico now belongs to Wall Street
The governor of Puerto Rico has admitted that the country can't keep paying down its over $72 billion worth of public-debt obligations.
As a result, the country finds itself in a uniquely awful position.
It can't enter bankruptcy, according to its own laws, so now it has to deal exclusively with its creditors to restructure its debt.
That means it has to deal with Wall Street.
"I think the surprise was that it happened this quickly," said Brian Kelly, CEO of the Connecticut-based fund Brian Kelly Capital. "We thought it would take six months to a year ... the solution is a debt restructuring."
Of course, when you restructure an economy that is already in tatters, its ability to pay is reduced as it struggles to fulfill its obligations. It can be a vicious cycle.
And once you're in the cycle, Kelly said, "the question is: 'Is this the first domino to fall?'"
Here's the situation: Puerto Rico's economy is in recession with a 14% unemployment rate. With little money coming in, legislators were already debating major cuts to the country's $10 billion budget.
"My administration is doing everything not to default," Gov. Alejandro García Padilla said. "But we have to make the economy grow," he added. "If not, we will be in a death spiral."
But growing out of this is not an option.
For months, even as distressed debt buyers started circling, Wall Street remained optimistic that things would work out.
Earlier this month, bond god Jeff Gundlach of DoubleLine Capital told investors that he thought Puerto Rico would "make it to the goal line," adding that they would, at worst, restructure around 80 cents on the dollar.
That's not looking close to possible now, Kelly said.
A lot of Puerto Rico's debt is in municipal bonds, and thus the country's situation is similar to Detroit's.
But unlike Detroit, Puerto Rico — a US territory — doesn't have the option of using the bankruptcy process to discharge its debt.
Consequently, it will be forced to negotiate with its creditors, making it a little bit more like Greece.
Those negotiations could involve a lengthy slog — such as the one we're seeing in Greece — in which Puerto Rico must constantly go back to the table to restructure with its creditors. It will not be able to access international markets in the state it's in.
Puerto Rico's constitution dictates that the debt has to be paid before any other financial obligation is met. So a default on this obligation will require a referendum on a constitutional amendment.
It looks as if García is prepared to pursue that if he must.
"There is no other option," he told The New York Times. "I would love to have an easier option. This is not politics; this is math."
On Wall Street, if you say you're defaulting, you might as well have defaulted.
And indeed the market is treating García's statements as fact. Bond insurers guaranteeing the island's debt are getting killed in the market. The stock of Assured Guaranty, which provides municipal-bond insurance and financial guarantees for infrastructure and structured financings, has fallen over 12%, while stock of the financial-services company MBIA has fallen over 17%.
In any case, the acknowledgement is probably a good thing for Puerto Rico. Once you admit you're going down, you can start negotiating as soon as possible.
"Puerto Rico executed the mother of all news dumps on Sunday night," Kelley said, adding "the market must decide whether or not this is the beginning of a larger breakdown of the global Prisoner's Dilemma.
"In this case the Prisoner's Dilemma is if they all keep their mouth shut, investors keep buying their debt. On the other hand, the first few to confess may be able to negotiate a deal."
Puerto Rico was considering taking on another $2.9 billion of debt before it commissioned an economic study that made García say "no more."
He told The Times that the commonwealth "could not continue to borrow money to address budget deficits while asking its residents, already struggling with high rates of poverty and crime, to shoulder most of the burden through tax increases and pension cuts."
Puerto Rico's creditors have to feel the pain as well, he said.
We'll see how much pain Wall Street is willing to take.
Jdtolle » June 30th, 2015, Step beyond the limitations
Don’t take refuge in seeing yourself as a victim. Take pride in getting yourself to do good and valuable things.
Everybody has problems and limitations and extenuating circumstances. Yet progress is always possible no matter what.
Sure, there is unfairness and there is injustice in the world. Work to right those wrongs but don’t fall into the trap of using them as excuses.
When you choose to move forward, there are all kinds of things that could go wrong. But that is no reason to hide from life or to remain stuck where you are.
You don’t have to be defined by your disappointments, injuries or limitations. Choose instead to define yourself by your highest visions, your dreams, goals and ambitions.
You are a unique, creative bundle of positive possibilities, so live your life that way. There is so very much good you can do, so let go of the excuses, step beyond the limitations, and make more of the goodness happen today.
Ralph Marston Wishing All a safe and blessed day JDT
P.S. The world is filled with willing people; some willing to work, the rest willing to let them.
-- Robert Frost