Anonymous
Anonymous asked in Politics & GovernmentElections · 3 weeks ago

Do you believe these stories that Trump is broke?

6 Answers

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  • Tmess2
    Lv 7
    3 weeks ago
    Favorite Answer

    Not broke.  Just not liquid.  

    In the commercial real estate business, it is not unusual to have substantial debts on property.   Usually, the loan/mortgage has a big balloon payment at the end of the loan period.  If the developer has made enough payments and the assets appear to be sufficient to cover the loan, some bank will give the developer a new loan to let the developer make the balloon payment.  

    The problem is when the developer has a lot of properties that are overvalued and losing money (like President Trump's golf courses), then the banks might not be willing to make a new loan for those properties.  At that point, you get in a cascading spiral of needing to make a rushed sale of assets to cover the balloon payment.  

    All told, Trump probably has a positive net worth, but nobody (other than his accountants and banks) knows the real value of his assets and his total debts.  And, if he has to make a forced sale of assets to cover his debts, even if he has a positive net worth, it might not be enough to avoid bankruptcy again.  

  • Anonymous
    3 weeks ago

    I doubt he's broke, finance on his level is very technical

  • Archer
    Lv 7
    3 weeks ago

    So I would wonder why would it matter!

  • 3 weeks ago

    No. But who cares?

    Debt needs to be measured against equity, and he has enough equity to carry him for a while.

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  • Bill
    Lv 4
    3 weeks ago

    Sounds silly  but a lot of rich people don't have any of there own money. They use other people's but one day all debts are called in 

  • very likely......

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