Municipal Bankruptcy

Politicians in Washington, D.C. are scrambling for a solution to Puerto Rico's fiscal ciris, according to a commentary in The Economist. The island’s fiscal woes are in part the result of chronically bad budgeting. But they also stem from structural economic weakness. Bailing out Puerto Rico, which is self-governing but not a state, is not a popular option. Yet when any corner of America faces a deterioration in its long-run economic fortunes, the costs will end up being shared, one way or another.