Puerto Rico’s debt crisis is a case study in blue model failure.

Puerto Rico bondholders are in for an unpleasant start to 2016 as the island announces that it will default on some of its debt payments due on New Years Day.

Puerto Rico managed to avoid complete default because of the creativity of its politicians and bankers, not because it suddenly discovered some extra cash or figured out how to balance its spreadsheets.

The U.S. Treasury is considering issuing Puerto Rico a “superbond,” which would give bondholders some security in exchange for taking a haircut. In the long term, however, Puerto Rico should be moving toward either statehood or independence.

The U.S. Congress needs to conduct a thorough review of the policies and laws governing Puerto Rico.

Puerto Rico needs to have any financial relief tightly tied to serious, far-reaching reforms. Blank check bankruptcy protection, such as the kind being floated by Governor Andrew Cuomo, just won’t do.

Treasury Secretary Jack Lew tells Congress no federal bailout for Puerto Rico is in the offing, but urges it to grant the commonwealth access to federal bankruptcy courts instead.

Puerto Rico’s governor: We cannot pay our debts. The math doesn’t work.

Puerto Rico’s finances are already in crisis, but a looming cut to Medicare reimbursement rates might deepen the catastrophe.