Puerto Rico is the best parallel among your list. New Jersey, Chicago and Detroit are not very apt parallels.
Puerto Rico actually has the option, with U.S. blessing of course, of voting independence and issuing their own currency, just like Greece.:eek:
There is a similar level of tax evasion and corruption in Puerto Rico. I've spent a good deal of time there. Have close friends associated with UPR. The Island has tremendous natural resources and the economy could be booming if it wasn't for the Puerto Ricans themselves. They are their own worst enemies. I am hoping that the U.S. does not come to their rescue with loan guaranties and debt restructuring unless it is on the condition that the U.S. comes in and takes over Island governance, i.e., puts the Island in receivership. That is the only condition under which they should be offered a financial rescue package. But watch, your tax dollars will very likely be wasted there because there are major U.S. corporate interests in Puerto Rico. Unless they change the government, which is corrupt to the core, nothing will change. They had a chance to get the tax evasion under control (Average physician reported income there is something like $17,000!!!) by adopting the value added tax, but muffed it, of course. I have zero sympathy for their problems that they have brought upon themselves.
