MONEY PROBLEMS – AT 9:47 A.M. ET:  You've been hearing much about Puerto Rico's debt problems.  Today is a critical day.  The issue can potentially be important during our presidential campaign, as many Hispanic voters have feelings about Puerto Rico.  From Bloomberg: 

Puerto Rico will default on a $422 million bond payment for its Government Development Bank, escalating what is turning into the biggest crisis ever in the $3.7 trillion market that U.S. state and local entities use to access financing.

Governor Alejandro Garcia Padilla invoked a debt moratorium law approved last month, saying during a televised address Sunday that the commonwealth needs to focus on providing essential services. The bank, already operating under an emergency period, had until the end of Monday to make the payment. The Government Development Bank reached a tentative framework agreement with investors who hold $900 million of its debt late Sunday under which creditors would accept a potential haircut, leaving them 47 cents on the dollar of the face value of their original securities, the bank said in a statement. The parties agreed to keep discussions out of court while they negotiate.
“Faced with the inability to meet the demands of our creditors and the needs of our people, I had to make a choice,” Garcia Padilla said during his 10-minute speech. “I decided that essential services for the 3.5 million American citizens in Puerto Rico came first.”

COMMENT:  There is a campaign underway to have Washington bail out Puerto Rico.  There is also a counter-campaign.  You may have seen ads for it on TV.

With the Republicans seriously vulnerable among Hispanic voters because of Donald Trump's coarse comments about illegal immigrants, the plight of Puerto Rico can be used to great effect by the Democrats.  On the other hand, the Dems must be careful not to alienate others.  Bailouts are unpopular, with many people believing that the need for them stems from poor or corrupt management.

May 2, 2016