Prof. Vaaler Comments on Debt Crises in Greece and Puerto Rico

Professor Paul Vaaler discussed recent developments in the ongoing sovereign debt crisis in Greece including prospective debt bail-out and restructuring as well as default scenarios confronting Greece's left-wing Syriza party government and the troika of creditors holding more than $300 billion in Greek debt: the International Monetary Fund, European Central Bank, and European Commission. He also commented on the emerging debt crisis in Puerto Rico where federal law currently prohibits the commonwealth government from seeking protection from creditors under U.S. bankruptcy law, and where large U.S. bond insurance companies are potentially liable for interest payments on commonwealth debt exceeding $72 billion. Vaaler's comments came during his weekly appearance to discuss current business issues on WCCO Radio's Dave Lee Show.