IN FLAGRANTE DELICTO

Posted by Deborah Long on Dec 9, 2019 in 2020 Presidential Election, Government, Society | 0 comments

“So, here’s the con: Trump buys a property with nothing down – with no skin in the game – by getting investors to put up the equity and banks to provide a mortgage for up to 100% of the asking price. He uses his company to take ownership and then eventually runs the thing into the ground while retaining a piece off the top. Because the size of the loan is so enormous, he becomes too big to fail for the banks, because the lenders would incur enormous losses if they foreclose on the loan. He negotiates with the lenders to retain some equity in the property, and they keep lending on it. The legitimate lenders who initially had to eat the losses early in his career refuse to lend him any more money. Only one bank stays in the game: Deutsche Bank. DB is known as the go-to bank for international money laundering, particularly for the Russian Mob. (For more on this, ask Wilbur Ross.) Trump’s deals are usually bad bets in the first place: Doral, golf courses in general, and towers in former Soviet states. Ultimately, Trump’s business plan became primarily a money laundering operation, and he shifted from building product to licensing his name. He learned this technique in the 80s from con men like Ivan Boesky and Michael Milken.”