Things are getting difficult

You're so correct, many cops are owed money, trash pickup is irregular sometimes, what's next??

This just shows that rock bottom hasn't been hit yet. I am praying for the families still on the island that they stay strong and are able to hold on. Eventually, it will get better.

I noticed that the electricity company isn't cutting trees and/or branches, at least in out area.
We had three blackouts in three days (Saturday 5 hours, Sunday 6 hours and today 3 hours). They wait until the weather calms down, put a new fuse in and leave again.

We're talking to get a group of neighbors organized, take the fuse out and cut trees and branches ourselves...

Gary, they started to contract 3rd parties to perform the tree trimming, since they are not being payed, they are not trimming.

Property owners should be charged for the trimming of their trees or pay for any repairs to the lines caused by their trees. Trees should never be planted around electric lines or at least trim so they do not grow tall enough to affect the lines.

Those not paying should have their lands confiscated after the debt reaches a specific level.

They have to play hard ball or nothing will ever change, besides there is no good reason to have 60 feet tall trees in front of a property along a public road.

Most of these lines are along roads and I don't know if the trees are on private property or not.
If a power company puts lines over land I think it's also their responsibility to keep the track free of trees.
We will now have to find a way to get the @#%$%$ fuse out in a 14,400 Volt line without getting killed and do the work ourselves.

Now, don't get me started but electricity lines should be underground IMHO. I lived 13 years in Germany, experienced many storms, winters with snow and ice, you name it but one thing I never experienced was a power outage. The same applies to the Netherlands where I was born and raised. I remember one power outage when I was 12 or 13 y/o. Yes, all lines (with the exception of the main distribution lines on the big metal towers that can withstand a hurricane and more) over there are underground where they belong.

A lot of jobs are being lost of permanent employees, temporary employees and others who service them. Likely this means more houses on the market that will sit unsold for 1-3 years.

When the PROMESA board is in full swing they are going to cut the goverment budgets way down and they will in turn have to do even a lot more layoffs.

We have 78 municipalities, each has a major and support staff, they will likely become 20 and a lot of the services and contracts for work will be centralized. The board is not stupid they know the amount of personnel needed to service the people.

Supermarkets in the states have a consumer counter that not only handles supermarket issues but also allow you to pay water, electricity, and phone service. Why PR can not have efficient offices that handle multiple services is beyond me. Besides a lot of that can be done online from a smartphone that just about everyone has.

Last but not least I never understood why people have to go to a separate office to buy an official stamp, why not just pay where you get the service with cash or a credit card? Business can do it, why not the government? It is ridiculous!!!

Hey Frogrock, just heard that a doctor that lives in Palmas was arrested today for Medicare fraud by the FBI, I guest this one will be leaving her practice because of relocation ....... to jail. 

Name listed in the news as Omayra Pereira Estrada a generalists, she is being hit with 11 charges and may not be the only doctor, seems she was doing it with other doctors

A lot of valid points, Rey. Many things on this island very inefficient.
It seems to be normal to have to wait for hours, not only at governmental services but also for medical services or even to check out in a store (OK that's no hours but 20-30 minutes is considered completely normal.

As for paying utilities, that can be done in many places, including all Banco Popular branches.
Since a couple of years I pay utilities online with the "Mi Banco" application at Banco Popular, either on the 'puter or phone. Somehow most people seem to prefer to either write a check or go to the bank or office and wait  in line to pay. Old habbits change very slowly.

Well the goverment will resist the board and when their budget is cut they will cut police, firemen and trash pickup first to cause a lot of people to scream and then point the finger at the board. This way they can try to keep their friends an relatives employed.

A blood bath is coming and the elderly, disable and sick will be suffering the most. Hospitals are already closing wings and causing even more doctors and nurses to head to the states. Expect longer lines and less services.

"Doing it with other doctors"? Oh, Rey, you made me blush!

Inefficiencies, hurricanes, earthquakes, Medicare fraud.  And yet, this is where I want to be.

It is a great place

ReyP wrote:

It is a great place

I have to agree even though we're on generator power again, since 8PM yesterday...

Here is a letter from the Promesa Board just issued to both the incoming and outgoing governors.

While I have to agree with what it says needs to be done, short term it is about to cause significant paint to at least 90% of the population. Long term these steps look like they will do the trick but we are talking 5-10 years. http://rec-end.gfrcdn.net/docs/editor/carta_junta.pdf

Rey

Good post - better buckle up - we could be in for an interesting ride!

Here is another article about what ails PR and the difficulties encountered by local business. http://www.reuters.com/investigates/spe … ium=Social
Well worth a read

As a sidebar to the Reuters article: Clinton gave tax breaks to US corporations wanting to do business in PR, to keep them in the US instead of moving to Asia. IT worked well, and PR had huge economic growth spurt during that time but then Bush re-instituted taxes to US corporations doing business in PR to offeset the tax breaks given to individual federal tax payers. So, those corporations ended up going to Asia after all and PR was left with a vacuum of employers. 

THen came the Wall Street melt down in 2008, Many Puerto Ricans, now out of work, ended up losing their homes through foreclosure. FNMA and FDMC were on the verge of bankruptcy and in order to save some of their backed mortgages to US banks they largely pulled out of PR, making it very difficult for the housing industry to survive, since nobody could get financing to buy a home. Without the interest banks were receving from home loans, they had little to lend to businesses, and most other sources of financing had dried up.

Some developers tried to take advantge of the serious downturn to grap up stuff cheap. Donald Trump, for one, convinced a bunch of his well-heeled buddies and some Puerto Rican investors to go into ventures with him to develop golf courses, but ended up declaring bankruptcy leaving his investors holding the bag. The local contractors and workers hired for the projects were stiffed.

One thing led to another. There came a point when the snowball got out of control and nothing could stop it. I think PR will survive, but it will have to dig it out of its own hole, since I see very little sympathy from any other entities willing to give it any assistane.

We should develop the island and do more from within not depend on attracting industry for a while that is going to relocate the money back to the states and leave the island when the tax break expires.

We need more local entrepreneurs not more walmarts.

Well, we can go on the pot growing business. With medical marijuana getting a big push in the states and getting legalized in the island. I can see a big business for local growers, great weather year around and plenty of good soil. Don't see why not capitalize like Colorado did.

Now, don't go smoking the profit! 

ReyP wrote:

We need more local entrepreneurs...

That AND a government that encourages local businesses instead of making it almost impossible to start and run a business because of all the permits needed and the time  to get all of them organized.
(and money under the table for the people in charge...)

Multinationals typically move the gains back to the states and grow their business there.

Local entrepreneurs would keep their profits in the island and purchase most of their needs and talent locally. Goverment needs to nurture them maybe give them tax breaks during the critical first 3 years and help fund classes for business to learn how to overcome common obstacles and how to do their marketing and business plans. Some funding would not hurt either.

First thing the goverment needs do is make it easy to get permits and get started in days instead of 6 months, also eliminate most of the paperwork so business can do their thing instead of doing paperwork.

As to pot business, that is definitely a growing oportunity (pun intended), but it is just 1 item.

Pot farmers would have a big security issue with people trying to steal the crop, and issues with kids eating or smoking it and getting seriously ill, which will end up in court proceedings, something a new business does not need.

But we need more Dairies, meat production, export of uniquely Puerto Rican convenience food products like alcapurias, salmorejo, boxed rice with Gandules, IT monitoring services, programming, many others where Latin America and the US are the customers, we need tour guides to show the entire island, we need high value relocation companies that make moving to PR easy for employers and high value customers

It is not just one thing, but many things that people in PR can put together to grow their business first locally and later international.

Maybe 10-20 individuals can put their money together and start these businesses, each a shareholder with incentive to see it perform. When it is a single individual the cash outlay is large so only rich guys get to play and reap the benefits, but when many pool their resources, many come out ahead.

Just my opinion

An investers group could look at local opportunities.  Would require some knowledge, expertise, etc for project proposal review  - this is an interesting idea.

I have to plant boots and study things, but I plan to do some investments with or without an investments group. With the power of an investments group one can make bigger waves in the economy. Mean time meet people and network.

I have witnessed the difficulty my friends have gone through starting a small business in PR.  No small feat, the red tape and costs are formidable.  To be successful requires a lot of hard work, some cash and luck.

That being said, there are some opportunities,  I may be open to looking at joining a small group of investors.  If we had a small group to meet and discuss a possible ideas, it could lead to a successful venture.

Any other folks with possible interest? 
,

I will be willing to invest and bring some ideas. Right now I am investing in rental properties. My goal is to have at least 4-6 houses plus having our guest house converted into a B&B for weekenders catering to mainly mainland.

I am building the gazebo on this trip and hopefully the pool will be ready by summer.

The next year will be interesting. The new governor will have to implement the cut backs etc. to services etc. Will the cut backs cause riots as were seen in Greece? Will the new governor then be blamed for everything?

After reading the "carta_junta.pdf" hopefully the new governor will try to make meaningful improvements to the runaway and inefficient bureaucracy that stifles small businesses and the normal citizen of PR. Only time will tell.

bkettren wrote:

The next year will be interesting. The new governor will have to implement the cut backs etc. to services etc. Will the cut backs cause riots as were seen in Greece? Will the new governor then be blamed for everything?

After reading the "carta_junta.pdf" hopefully the new governor will try to make meaningful improvements to the runaway and inefficient bureaucracy that stifles small businesses and the normal citizen of PR. Only time will tell.

People in PR tend not to be the riot type, it can happen but not likely. Most likely some demonstrations and a lot of bellyaching.

The new governor will be blamed for some of it, after all he is making the decision of what to cut no mater whose fault it was 10 years ago.

PR politicians tend to be unsure about implementing new revolutionary ideas, they will drag their feet and do half ass attempts at complying with the Promesa team mandates. They will spend more time blaming somebody than actually doing the mandated work. They are too used to doing things in a ceirtain safe way so they can be reelected and blame he last 3 administrations.