Who pays for Puerto Rico bankruptcy?

The issue is can the bond holders be guaranteed relief from municipal default.  NY Post op ed below says yes, protect bond holders.   I say bond holders are stuck, they should have known better.  The rulings are everywhere, if the bankrupt entity chooses to favor pension payments over interest payments, then bond holders need to raise rates. Seeking federal guarantees is just more socialism.  

NY Post op ed: If you have a retirement fund or pension, or you’re a taxpayer, get ready to have your pockets picked.

The Obama administration wants Congress to enact a bankruptcy plan for Puerto Rico, forcing holders of Puerto Rican debt (including New York City pension funds) to settle for less than they’re owed.

Puerto Rico is over $70 billion in debt and already defaulting. House Speaker Paul Ryan has promised action by March 31, and the Supreme Court took up the issue on Tuesday.

In 1984, Congress amended federal bankruptcy law to prohibit Puerto Rico from enacting any law that would force creditors to accept less than what they’re owed. If Congress rewrites the rules now retroactively, it will jolt municipal-bond markets. Jittery lenders will demand higher interest from states and cities that need to borrow, whacking taxpayers who foot the bill.