Puerto Rico's rap sheet isn't so different from that of many troubled European countries. It's been in a recession since 2006--longer even than Greece. And like many euro zone countries, it can't inflate its way out of its problems because it uses the US dollar. ... Yields on Puerto Rican municipal bonds have doubled from a year ago, as investors have grown worried that the little US territory won't be able to pay off its massive debt pile. And if you're an American the drama could hit close to home; there's a decent chance that your pension fund has some Puerto Rican bonds in its portfolio. Detroit's July bankruptcy hasn't helped--the city's potentially huge losses for bondholders are making investors in the entire asset class jittery.

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