Trump’s budget director Mick Mulvaney on Wednesday appeared to walk back the president’s comments, and many market analysts dismissed Trump’s suggestion as unworkable. But even the suggestion that Puerto Rico might somehow leave creditors high and dry nonetheless injected new uncertainty into the long, fraught process of trying to put the island’s finances back in order. It also raised the specter of other distressed states, localities and territories (think Illinois, Hartford, Connecticut, and the U.S. Virgin Islands) following the path to paying zero.

https://www.bloomberg.com/news/articles/2017-10-04/trump-speaks-a-3-8-trillion-market-hears-an-existential-threat