And the UST and FED say "no bailout" for PR. I suppose they need to save the powder for bailing out the holders of the debt rather than the debtor? The Muni market was said to be on the verge of collapse in 2011 according to Meredith Whitney (a well respected expert at the time) and when it failed to happen she was resoundingly rebuffed. Yet here we have a $70B muni default. When the institutions holding large amounts of PR bonds get relief and not Puerto Rico itself maybe then we will have had enough? I am not saying bail out PR, I am saying do not bail out the losing bets made on WS.
Less then one year ago the Muni market was surging and only two weeks ago the FED was touting the growth in the Muni space as signs of renewed strength.
http://www.bloomberg.com/news/articles/2015-06-11/muni-bond-market-grew-by-1-1-percent-in-first-quarter-fed-says