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Why Puerto Rico's Financial Crisis Is Not a Foreign Problem

You might not realize it, but the financial crisis in Puerto Rico, a Commonwealth of the United States, could have a big impact on the US. Tax incentives have made buying bonds on the island so popular that about 75% of municipal bonds funds in the U.S. have cash invested on the island. That makes it all the more dangerous for the U.S. economy as the island continues to send out financial red flags.

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