White House budget director Mick Mulvaney on Wednesday walked back President Trump’s comments calling for Puerto Rico’s debt to be wiped out.
“I would not take it word for word,” he told CNN. “We are not going to deal with the fundamental difficulties Puerto Rico had before the storm.”
In a separate interview with Bloomberg News, the Office of Management and Budget chief was even more explicit in saying the hurricane-ravaged island would have to fix its debt problem on its own.
“We are not going to pay off those debts,” Mulvaney said. “We are not going to bail out those bond holders.”
Trump roiled financial markets with his claim Tuesday the federal government would need to wipe out its $74 billion municipal debt.
“They owe a lot of money to your friends on Wall Street and we’re going to have to wipe that out,” the president said during an interview with Fox News. “You can say goodbye to that.”
The island’s general obligation bonds plunged to a low of 34 cents on the dollar, according to a CNBC report.
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JUST IN: Budget chief contradicts Trump on Puerto Rico debt: "We're absolutely not going to bail them out" https://t.co/z3oBsWbJph pic.twitter.com/niEjLOwlnx
— The Hill (@thehill) October 4, 2017
Gosh this is one stupid man.
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