Why Trump Doesn’t Care That Russia Paid Bounties to Kill American Troops
I don’t understand why everyone is puzzled by Trump’s obsequiousness towards Vladimir Putin. If you know anything about Trump’s financial history, it’s obvious that Putin owns him. Trump has to do what Putin wants because if he doesn’t, Putin will have the Russian banks call Trump’s loans. Trump can’t repay those loans because they are secured by properties that are losing money.
To understand how Putin came to own Trump, you have to first understand how real estate developers fund their operations. It is a highly leveraged business. Very little of the developer’s own funds are used. Instead, banks extend them loans using the anticipated rentals or sales from the completed buildings as collateral. A good real estate developer purchases land or a building in need of renovation in a rising market at a price that will allow him to complete the project and either rent or sell space in the finished building at a profit allowing him to repay the loan.
Donald Trump is not a good real estate developer. Thanks to his poor negotiation skills and consistent inability to read the market, almost none of his projects have been profitable. He has been unable to repay most of the loans extended to him. Rather than pay in full, he makes partial payments or declares bankruptcy to get out of repaying the loans. At…
