Puerto Rico is not 'America's Greece'

Since Puerto Rico's government announced it couldn't pay back its debt, it's earned a new moniker as news organizations are quick to call it 'America's Greece."

But is the country in the same position as Greece? The answer to that is no. Not where it counts, anyway.

First off, the scale of the problem is much smaller.

Greece is a much larger economy, and its default directly affects countries across the eurozone.

"In Puerto Rico's case, hedge funds and distressed debt buyers have bought billions of the island's debt," according to Bloomberg. "And if a default hits, they will lose money. ... The United States government has much less of a reason to get financially involved in Puerto Rico."

That brings up another big difference: Puerto Rico is a U.S. territory. In contrast, Greece is its own sovereign state, which means while it chooses to use the euro, it doesn't have to.

The fear that it won't is behind the panic that has sent millions of Greeks scrambling to snap up euros while they still can.

Puerto Rico won't conceivably be switching currencies anytime soon, which means its people still have purchasing power. That's something they've been using more and more recently, another contrast with Greece's situation.

But there is at least one significant similarity. In both Greece and Puerto Rico, creditors favor imposing austerity, cutting public services and raising taxes.

And in both Greece and Puerto Rico, that's something most people want to avoid.