The end of an era?

Abstract

“At the time of writing, the decrease in manufacturing employment continues, public debt has reached unprecedented levels and Wall Street rating agencies are close to reducing Puerto Rico’s government financial instruments to the level of junk bonds. More critically, government agencies have run out of funds two months before the end of fiscal year 2005-2006. An impasse between the Popular Democratic Party-controlled Executive and a New Progressive Party-led Legislature forced a two-week layoff of close to 100,000 public employees. Coinciding with this, Congress is conducting hearings on possible mechanisms of dealing with the status question. Erosion of the prestige of the major political parties, fiscal crisis and growing exasperation on the island, on Wall Street and in Washington with Puerto Rico’s overall situation: Puerto Rican society is at the end of an era.”