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Disclosure: I've not read details beyond headlines -- I just don't care enough about your tribal politics until and unless it's violent. I do headlines and try to tell myself I know the trends a bit.
Anyhow - as I understand it - and I could be way wrong is that Trump inflated asset values to make his balance sheet look better and thus secure more favorable loan and financing terms.
Sadly I never made it even close to the level of these big-shots so I've never dealt at that level.
But back when I had businesses and gave a shit about making money and couldn't get enough of it, I had made 2 separate purchases of commercial real estate.
My bank (slightly larger regional player - good people) wanted 10% down and 5% down on the deals respectively. I could've done it but being in growth mode I wanted to preserve the cash to grow the business.
Anyhow, the regional director whom I had a great rapport with who knew my business got involved. Mind you I was wildly profitable, good reputation, blah blah etc.
It took about oh, 30 minutes of chatting and he told the local bank manager who worked for him "Have XYZ do the appraisal, and tell them we're gonna be fine on this one". A week later a legit appraisal company did it .....and by golly, the "appraised value" happened to be to the penny where I only needed 5% down on deal 1 - -- - and ZERO% on deal two and what a coincidence - the Loan to Value shows 80% on both.
There were and ARE other facets of bank lending where the banks, those the conduits, everyone openly KNOWS that values are being inflated. It was happening in the 80s, 90s, 00s, 10s, and it happened while you were reading this post I guarantee.
IF Trump was nailed for inflating values - well - that is kinda scary. That means we are Putin, minus pushing people off balconies - mind you, we've done that too.
Anyhow, diner treat this morning. LOL I used to cater meals for staff and it was not uncommon to spend $400 a crack. Now I get here on time for the breakfast specials.
Things change.
