Trump Cannot Eliminate Puerto Rico's Debt, Says Rattner

The transcript discusses the complexities of Puerto Rico's $70 billion debt and the potential ramifications if the US government were to intervene. It highlights the legal and financial challenges, including the need for congressional legislation and the limitations of executive power. The discussion also touches on moral hazard and fairness issues, emphasizing the need for substantial aid while acknowledging Puerto Rico's obligations.

What would be a major consequence of the US government eliminating Puerto Rican debt?

• It would strengthen the credit markets.

• It would increase Puerto Rico's debt.

• It would undermine stable capital markets.

• It would have no impact on the economy.

What is required for Puerto Rico to undergo a debt restructuring?

• Presidential approval

• International intervention

• Congressional legislation

• State-level decision

Can the President unilaterally forgive Puerto Rican private sector debt?

• Yes, with executive power

• No, it requires congressional action

• Yes, if the debt is under $50 billion

• No, only the Supreme Court can decide

What is a potential risk of forgiving large amounts of debt?

• Moral hazard

• Economic stability

• Higher interest rates

• Increased foreign investment

What does Puerto Rico need in addition to debt forgiveness?

• Less government intervention

• Higher taxes

• More debt

• Substantial aid