Of course, places like that must have had foxes, or dumb chickens, guarding the henhouse.
The same with Puerto Rico. It’s easy to find people from Puerto Rico with highly critical things to say about how that commonwealth has run its economy, and its government programs. Honesty, efficiency and savvy are not words that come up often in conversations about public finance in Puerto Rico.
But another to look at this is that the most poorly run communities were planning on a certain level of investment earnings to bail them out. They thought, more or less, that the level of water in the investment salvation pool would be about 9 feet high. Instead, it’s turned out to be, say, 5 or 6 feet high.
A few wackos look bad when the water falls below 9 feet high and stays there.
A lot of nice, regular folks, including insurance companies you do business with, look bad when it falls below 6 feet and stays there.
The world’s central bankers have gone out of their way to keep the water level below 6 feet since 2008 and kept it there.