Select Page

Puerto Rico’s debt may be sitting in Mom & Pop mutual funds

Puerto Rico’s debt may be sitting in Mom & Pop mutual funds

SOTT

Puerto Rico’s debt may be sitting in Mom & Pop mutual funds

There was likely a collective gasp at OppenheimerFunds Inc. yesterday when President Donald Trump made another of those market-moving pronouncements, telling Fox News that Puerto Rico’s debt would have to be wiped out. The President’s remarks suggested he thought the losers would be Wall Street banks. The President stated: “You know they owe a lot of money to your friends on Wall Street. We’re gonna have to wipe that out. That’s gonna have to be – you know, you can say goodbye to that. I don’t know if it’s Goldman Sachs but whoever it is, you can wave good-bye to that.”

The reality is that a large percentage of Puerto Rico’s debt is held in tax-free municipal bonds and municipal bond mutual funds, owned not by Wall Street banks or tycoons, but by mom and pop investors seeking tax-free income. (As a result of Congressional legislation, the interest on municipal bonds issued by the Commonwealth of Puerto Rico, its political subdivisions and public corporations, is not subject to Federal, state or local taxes. This has made the individual bonds and mutual funds particularly attractive in places like New York City where residents pay a Federal, state and local income tax.)

According to a semi-annual report made last month at the Securities and Exchange Commission, Oppenheimer Rochester Fund Municipals, a popular tax-free fund held by many New York investors, was sitting on a boatload of Puerto Rico municipal bonds as of June 30, 2017. The SEC filing shows over 100 different Puerto Rico bonds, issued by the Commonwealth and numerous other Puerto Rico issuers like the Puerto Rico Electric Power Authority and the Puerto Rico Sales Tax Financing Corp. (The fund, of course, holds a widely diversified portfolio of other bonds as well.)

For more, go here.

Comment: Will the holders of PR debt suffer? Unlikely since interest payments made by Puerto Rico have likely more than paid for the face value on the loans. To find out who and what really benefits from Puerto Rican debt, (hint: Hedge fund scam and a certain ME country) see also: Israel donor, billionaire Seth Klarman is one of the largest holders of Puerto Rican debt

Galactic Connection’s Shop

Help Galactic Connection Thrive

Donations help us keep the site running, and every contribution is deeply appreciated.
Thank you

Erase Your Debt – Legally!

‘The Meaning of Your Many Lives’ Formula

Egyptian Oils / Quantum Entanglement Essences

~ ~ ~

‘Breaking Down The Barriers’ Formula

Translate

Alexandra’s Galactic Connection Alchemy

Young Living Essential Oils

Follow us on YouTube!

Spiritual Past Life Clearings

Unplug From The Matrix! Remove Your Controlling Implants! Phase 1

Phase 2: Soul Alignment

Phase 3: DNA Activation

Psychic Protection Tools, Proclamations, and Suggestions

Subscribe on iTunes!

Are You Feeling Isolated and Stuck?

Sign Up forOur Newsletter

Join our newsletter to receive exclusive updates, interviews, discounts, and more.

You have Successfully Subscribed!