Though Detroit seems to be in dire straights with its recent bankruptcy filing, there might actually be another piece of America that’s even worse off: Puerto Rico.
The U.S. territory is facing massive debt, a potentially crippling bond ratings cut, a gaping hole in its massive pension fund, and a towering unemployment rate bolstered by federal entitlements.
Even if Puerto Rico wanted to declare bankruptcy, it wouldn’t be able to—states and territories are barred from seeking relief in bankruptcy court.
Puerto Rico may not be a state, but it is part of the U.S. And it’s looking more and more like it will need a federal lifeline to survive. Puerto Rican officials have undertaken desperate measures to stop the bleeding, but is it already too late?
Ingrid Vila, chief of staff to Puerto Governor Alejandro Garcia Padilla, joins us to discuss Puerto Rico's options.