OF COURSE HE DOES, IT’S A RELIABLY DEMOCRATIC CONSTITUENCY: Obama backs special bankruptcy protection for Puerto Rico. “With Puerto Rico buried in debt and on course to completely run out of money by the end of the year, the Obama administration is urging Congress to take unprecedented action to help the island, including granting a type of bankruptcy protection unavailable to the nation’s 50 states. The administration said the broader bankruptcy protection, which would be available only to territories but not fiscally pressed states, is needed to help Puerto Rico avert a mushrooming crisis and restructure its $73 billion in debt.”

There are constitutional questions regarding Congress’s power to make bankruptcy laws for states; I’m not sure whether similar issues would apply here.