I Think I'll Postpone That Surf Trip to Rincon

The Puerto Rico meltdown is going to be brutal: Many of the bonds are held by Puerto Rican retirees, either directly or as part of pension fund portfolios. Moreover, the island is a typical example of blue model governance, with a bloated state that doesn’t perform effectively, public sector unions out of control, and lots of poor people who depend on a government that doesn’t serve them very well. And on top of all this, there are no bankruptcy provisions that would enable an orderly restructuring.

Look at whose debt is second only to Puerto Rico: