How Wall Street Fed Puerto Rico’s $70 Billion Debt Binge

And another happy day for the stock market. Wall Street rallied on Tuesday after the delayed employment report for September showed just 148,000 jobs were created. Market pros were expecting 180,000 jobs a relatively upbeat figure that seems seared on Wall Streets collective brain despite the fact that the optimism never pans out. I predicted that September would be lousy. In fact, the only thing that surprised me click here was that the growth wasnt more miserable. The Labor Department Mike Dillard Elevation Group also announced that the unemployment rate declined to 7.2 percent, which is another exercise in deceit since it only dropped by 0.1 percent point because more people gave up looking for work. The 800,000 government workers who were on paid vacation during the Washington shutdown euphemistically known as a furlough didnt count in yesterdays report. The September employment report had one strike against it from the start: It is one of only three months in which the government doesnt pump up the figures with a generous guess for jobs created by newly formed companies that may not really exist. The Labor Department actually subtracted 26,000 jobs for small companies that might have closed without the government knowing it.

Wall Street sweet on this month’s lousy jobs report

and its Salomon Smith Barney unit were Puerto Ricos top bankers, managing $27 billion of issues, while UBS was second, with $25.6 billion, data show. Briefing Feds Though the islands $29 billion total budget for the fiscal year that began July 1 relies on about $6.7 billion of federal funds, President Barack Obamas administration isnt moving to aid the commonwealth. Puerto Rican officials regularly brief the U.S. Treasury on the commonwealths liquidity, Treasury Secretary Melba Acosta said in visit The Elevation Group an Oct. 15 webcast with investors. If there is any particular program to buy Puerto Rico bonds or to give certain financial assistance, we have not talked to them about that, Acosta said. Theres no discussions in regard to that. The U.S.

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