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Matthew Goldstein (NY Times, Puerto Rico)

Oct 10, 2017|

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We're sifting through the rubble that is Puerto Rico try to figure out who lost some of the money. That has been expended over the last five years we're joined now by Matthew Goldstein from the New York Times to talk about that very subject Matthew welcome to the show. Good morning so who's this guy John Paulson and how much money does he have invested in Puerto Rico's sounds like he took a bath. Well. You know. Job also is a message manager. Yeah people may have heard his name he was one of the people who bet on a collapse of the housing. Market there's several. Course that well known for having made that ad about a decade ago and you've has once it was about that. Ball he'd be at one time he managed 36 billion but he he had a number of bad trait since been found about ten and now. He yes yes and separate and said that you can invest up to about a billion dollars in real estate mostly in the luxury resort. And some office buildings and condominiums yup. It doesn't you're gonna mean. Come out from the property damage standpoint he he probably generally okay as are many of the resorts and cleaning up damage but not. Huge damage but it's going to be an economic at all going forward about. Torres just getting people to work. At the resort. As the big concern about a lot of people looking to be the Eileen you particularly as the service to just do not. And not come back. Right you know how much of the islands you know economy is based just on tourism. Well I don't I don't have the GDP percentage but you know it does contribute about 65000. Jobs when you total it and and obviously you know. That property rate on Puerto Rico's 45%. Or not is like. 14% unemployment these are all that's obviously before Korea. And you know that was the bankruptcy the poverty is so he's been have been a serious issue on the island and and obviously been moving away. From soda industry this pharmaceutical companies they're more to sit about service oriented economy hand. Is you know one at that item that on the island but from our reporters and also looking and talking to other people. Then why is that it's starting to come back but when you go anywhere outside and want equity in land it. Really devastated on the island and it and it's just going to be a very long word. Right back and and that's really what impact. You know every what it was any kind of investment as resentment but you know others but does suck it. Poppy and they're they're saying they reports have felt the power doesn't come back on very soon you may see captain million people ought to be the island the next few months a couple of with spam you know in the state. Well and the thing that happens now that is anybody that's got 300 dollars and family member in the states is out. You know spent like they have the skills like if your panel truck driver electrician a nurse and doctor lawyer teacher in just figured educated Puerto Rican. Annular without electricity. And yet three in a box in your checking account you're out of there. Yeah I mean out of if you have kids they're not what the court now. I mean you know we're going until the third the third week in the there's no sign that the is going to be going back to school. It really I mean when you think about it. Of the many layers of the devastation and that's why people would have this thing even in the into the the yes I got an innocent people like don't title of art is all you got them I don't think anyone Sheridan but they're so that the united idea that. People wanna see the money to start coming in construction. Because it helps. Everybody you know where they don't create jobs in the near term and starting to get work going and it's really is frustrating house load things are things are now. Well Austin's pretty tight with trump those and maybe he was his advisor last year and couldn't he go to trumpets a Haiti and you know elected because what it ain't they need like ninety billion. Yeah I mean I don't I don't know how close friends are adapting western economic advisor one point trump was an investor and it is and try and yeah. I mean if you are into the all the people that they've earned not that close you know he was off but who knows I mean. But then again beyond that and you read the report I don't know. How much. The president actually listen to much to any of people on an entity takes advice but then he makes his own decision yup now. He's. I'm in who has his own man. It is so mad and there are other business people they are Q let me look at couldn't hurt probably at someone like Paulson but what I I was down there at this is what's going on. I think we need to have you know it's not. It's not that rosy scenario that we might like you know it's I think it. What are the Puerto Ricans get a bill immediately I know a lot of people from Puerto Rico and from what I'm hearing in this is anecdotal so I'm just talking. I have a friend I've gone home in the virgin outs of talking to a lot of people down there when I'm hearing. Is that Puerto Ricans are heading to two top destinations. Are Florida. In New York. I hurt. Texas. Yeah and that's acquired but it doesn't good and it remained destinations New York Florida and and text that amount. I think it's a case like if you if you winter alike from Puerto Rico I didn't think people wants. So leave the island I think that once they really want to make it work and at some point. You'd you'd have to pick your and we considerations. You know edit what I mean. What I think of the power with the come on and people can reliable potable water I think. Could be a lot more patient but I think there's a span as the two basic things that people. People need and have a longer that takes site I do think it's gonna be a very difficult such. When Matt there's no reason to believe the power coming back NBA nearly every report I've read. Is you know they they won't even put a timetable on it they won't say all right we'll have a back in six months beat that they're talking. I've I've read it like and if you're talking about the western end. Of that island or the middle of that island where there's thousands of people who live there yeah you're you're talking. Could be two years. No I don't and you know we had a story about sort of like Porter it's becoming acute generator island and I of his talkative and get into my straight been mocking some of these property under. We're trying to get another place to come back online but you know they didn't stop buying generators but you know it it east it's easier said than done you know. First up to get the trucks stripped the jets. The ship the generators yup yup to get the reliable diesel fuel so it. You know and they're not rent or. In they're not meant to run for six months in a row they might generators are meant to be back you know raise the price right right up. Yeah I don't know it's been very very. The very picture aliens and I don't think. You know I I simply don't have the answers but it's clear more and you'd be gone up somehow. No no I agree Matthew thank you very much for your time appreciate it graphic picture Matthew Goldstein New York Times I'll tell you the what's gonna happen. Is eventually if the federal government will step in and rebuild. The did not have much choice but what's happening news. It was canceling vacations down there which hurts them in front it's it's so fulfilling prof as well but then what's happily use lately you're seeing happen this is in not talking to people that live. And and following a month FaceBook whom we have friends down there what what you're seeing happen is a lot of vacation plans are canceling. But then you're getting booked up with FEMA workers. Utility line workers because the race for the first six months the feds just basically given them. At an open checkbook ready eight live near the federal government is is writing all the checks for the emergency workers so. Because they don't have any money it Puerto Rico and the Virgin Islands are broke they can't borrow and they're bankrupt before the hurricane yeah they're bankrupt before so. This is just. The best thing in its. Kind of weird thing this way but. The best thing for Puerto Rico might be the fact that he's been masters took stakes and then earlier this year BK is. At least it got someone else coming in at four well in if you're a long shot this might be an opportunity. You know the game. Yeah because they're so risk reward they so many people leaving right there yeah they. You enough sink Froyo which is an island on intimately familiar with populations dropped by 50%. As there have been a couple of weeks.