Puerto Rico Compass ©

Q2 2008: A Second Quarter Meltdown in Puerto Rico

Quarterly economic indices tell the story

Puerto Rico’s second quarter has been characterized by media news regarding bankruptcies, food and gasoline price spikes, foreclosures, car repossessions, unemployment, companies leaving Puerto Rico, and job losses. Construction continues to pull the economy downwards while a cautious banking sector continues to tighten credit. This credit crunch halts consumer expenditures and investment. Meantime, local politicians engage in Byzantine debates in order to win the next election rather than suggest and find the means to finance countercyclical economic policies. We have relied on relief from the federal government and the Federal Reserve. It is time for us to lend them a hand and leave this trough.