Slash holidays? Close govt agencies? Ailing Puerto Rico looks for ways out of deep slump

SAN JUAN, Puerto Rico (AP) — Slash the number of public holidays by two-thirds. Eliminate dozens of government agencies. Legalize marijuana and prostitution. 

From the intriguing to the impossible, there is no shortage of ideas for fixing Puerto Rico's ailing economy as the government tries to dig out from a whopping $70 billion in public debt and bring back economic growth. 

Puerto Rico, in dire straits following eight years of recession, has remained receptive as it debates hundreds of ideas: "We are studying all alternatives and all possibilities," said Sen. Maria Teresa Gonzalez, a member of the governor's party who has come under fire for submitting a bill that would reduce the number of holidays for public employees to six. 

Many suggestions have come as Gov. Alejandro Garcia Padilla prepares to submit the first balanced budget in decades, having promised U.S. investors and credit agencies that he will eliminate an $820 million deficit. The governor has not detailed his cutbacks, prompting fears of layoffs, tax increases and cuts to public service.

Big Hedge Funds Roll Dice on Puerto Rico Debt

Nontraditional Buyers Accounted for About 70% of Deal

Yields on Puerto Rico Debt Hit High

Puerto Rico's New Bonds Plummet To A Record Closing Low

Published April 15, 2014

Fox News Latino

The Puerto Rican bonds, which mature in 2035 and carry a coupon of 8 percent, were last traded at 87.75 cents on the dollar, pushing the yield up to 9.33 percent. On the market, bond prices and yields move in opposite directions.

DYI Comments:  Puerto Rico is the new Detroit when it comes to their finances.  Will there be a bailout by the  Fed's?  No talk in the media so it appears that Puerto Rico is on its own.  Tax increases and massive spending cuts are in store for the island along with more tough times ahead.

DYI