Puerto Rico is in a financial free-fall, and the federal government is actively trying to prevent a total economic meltdown. Recently, legislation was introduced in the House by the Natural Resources Committee to help resolve Puerto Rico’s financial crisis, an effort that is well-intentioned and far superior to any taxpayer bailout of the territory. There are concerns, however, that still need to be addressed before the bill should go forward.

In the last decade we have had a housing crisis, a banking crisis and a car manufacturing crisis. If student loan debt does not catch up with us first, the next economic crisis is likely to be state and municipality pension debt.

Personal Freedom and Prosperity 102: Acquiring and Possessing PropertyThat all Men are born equally free and independent, and have certain inherent natural Right…; among which are the Enjoyment of Life and Liberty, with the Means of acquiring and possessing Property, and pursuing and obtaining Happiness and Safety. —Virginia Declaration of Rights (1776)

Detroit is bankrupt. A combination of intense union cronyism, massive red tape and vile political tactics (The Curly Effect) drove the metropolitan area into the ground.

The city was founded in the midst of the California Gold Rush. So when the early-2000s real estate boom hit Stockton, they thought history was repeating. In just seven years, property values tripled, tax revenue spiked and the city's leaders had dollar signs in their eyes.

Democracy and Power 108: ObfuscationWherever politics intrudes upon economic life, political success is readily attained by saying what people like to hear rather than what is demonstrably true. Instead of safeguarding truth and honesty, the state then tends to become a major source of insincerity and mendacity. – Hans F. Sennholz

Democracy and Power 104: Government Debt – An Unpaid Tax Bill

For those of you interested in my view on GM's bankruptcy and the future emergence of Government Motors, please see my article at HumanEvents.com.  (My agreement with Human Events does not permit me to post the text of the article here.)see “GM Bankrupt: Obama Takes Over", Ross Kaminsky, HumanEvents.com, 6/1/09 http://www.humanevents.com/article.php?id=32085

... Aaaand probably the federal government.Over at the Atlantic, Megan McArdle takes on the question "Is California too big to fail?" Short answer?  Nope.

Here is an interesting column written by Congressman Ron Paul (TX-14), making an extremely interesting case for the necessity of an AIG bankruptcy.