Like so many other places in the world, we are about to see the recipients of easy credit feel the crunch when it all comes due, and there is no way in hell to repay.

Puerto Rico is almost certain to default and the debt could set off a tidal wave of contagion that could drag down the world financial system; in the meantime it will be the United States' problem to deal with, yet another liability for the overburdened taxpayers of America. The system is rigged for failure, and the hot potato is just being passed around. Which crisis will crash it all? Who knows, just keep moving…

Puerto Rico Is About To Default: Your Complete Guide To An Island Debt Debacle

by Tyler Durden

Last week, we brought you the latest from Puerto Rico's debt debacle. The commonwealth is desperately trying to restructure some $72 billion in debt while staring down a $354 million bond payment due on December 1.

As we discussed at length on Friday, some $270 million of what's due next week is GO debt guaranteed by the National Public Finance Guarantee Corp. Defaulting on that is bad news and as Moody's warned earlier this month, a missed payment on the commonwealth's highest priority obligations "would likely trigger legal action from creditors, commencing a potentially drawn-out process absent swift federal intervention."