Hedge Fund Paradise Hides Puerto Rico’s Crisis In the Making.

A failing power grid and affordability strains are dividing the island into haves and have-nots.

If you walk in certain circles, it’s easy enough to believe that Puerto Rico has moved past devastating hurricanes and the largest municipal bankruptcy in US history.

Ritzy hotels and luxury restaurants are sprouting up along the island’s white-sand beaches and crystalline waters. Dinner for two can cost $500 at those high-end spots. Hedge fund executives and crypto exiles are moving in, lured by lucrative tax breaks.

But it’s the hum of privately owned generators that makes those lifestyles possible, and shields this set of the island’s inhabitants from the reality experienced by the vast majority.

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Bloomberg Economics

By Jim Wyss and Michelle Kaske

August 18, 2023 at 3:00 AM PDT



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