When your Trump loving uncle says there's no victim in over valuing property

[Ohioboy]

Explain it this way.

Rich people can get better interest rates on loans than poor people. Money from loans is not taxed by the IRS. As long as the interest rates are less than the tax rates, rich people can borrow what they need to live on and pay less for their money.

Trump over values his assets to get good interest rates. This cheats the bank and other people taking out loans at the honest rates. He (Trump) then uses his good interest rates to borrow money that won't be taxed, cheating the IRS and basically all the rest of us.

[Silent Type]

1. I doubt any bank paid much attention to how trump valued his property. They are interested in cash-flow and

how much they can get from the property put up as collateral. Of course after he was elected Prez, some banks started looking at influence.

There was a thread on DU a few days ago supposedly quoting a banker who basically said, "We never paid attention to trump's valuation."

But, without question he's a conman and thief.

[Happy Hoosier]

6. Many banks have written policies on this.

They have a fiduciary duty to their stockholders to properly assess risk and a duty to ensure that loan conditions are issued fiarly. If Trump got more favorable terms because he lied about his net worth and liquidity, then he paid less interest than those who were hoest did. So either the bank is overcharging others, or undercharging Trump.

If Joe Schmo has to pay a certain rate when he honestly reports his assets and liabilities, then Trump should have to do the same.

That's why it's a LAW that businesses must present accurate SFC's.

Otherwise, everybody would just lie about it.

[Silent Type]

8. If they gave trump a sweet deal. I suspect they charged him interest rates commensurate with

his cash-flow, the bank's assessment of collateral's value, and evidence of meeting other loan payments.

Again, no doubt he got deals if bank expected favors as he ran for Prez or sucked up to Putin.

[W_HAMILTON]

22. You just contradicted yourself.

I doubt any bank paid much attention to how much trump valued his property. They are interested in ... how much they can get from the property put up as collateral.

Valuation would go into that.

As would his fraudulent financial statements, which the banks almost certainly would have relied upon in determining whether or not to issue loans to his companies. Banks aren't out there doing audits of loan applicants. They rely on a company's financial statements, tax returns, etc. When documents like those are fraudulently prepared -- as a judge has already ruled his financial statements were -- the bank is making decisions based on lies.

And in the case of a loan, it doesn't matter if one loan or two in particular were paid back since you can essentially create a Ponzi scheme effect by paying off old loans with new loans -- new loans that you are only able to get due to the fraudulent financial statements you are providing to banks in order to get them.

If fraudulent financial statements were, in fact, unnecessary to getting these loans, there would have been no reason to prepare fraudulent financial statements and give them to banks to begin with; hence, Trump and his criminal cohorts certainly believed they were necessary.

[PaulRevere08]

2. Isn't part of the fraud that he lied and lowered about the value of his properties to lower his taxes.

Last edited Wed Oct 25, 2023, 11:29 AM - Edit history (1)

[Rebl2]

5. Yep

[LymphocyteLover]

3. All good points, if there were any hope in reasoning with a MAGAt

[murielm99]

10. Correct.

Most of them are too stupid to understand what the OP is trying to explain.

I get it. You get it. Magats don't have much in those round things they top with red hats.

[not fooled]

14. Yes, case in point

my dumbass maggot neighbor. No matter the crime, here's his response: "The economy was PERFECT under Trump, so it doesn't matter what else he does." So there.

[LymphocyteLover]

15. OMFG

[Takket]

17. Drumpf has one of he worst economic records in history

[not fooled]

20. "Prices were low, inflation was low, and gas was cheap"

Saith the maggot.

He gets his "news" from Fox, if that helps explain anything.

[keithbvadu2]

4. valuing property

[SouthernDem4ever]

13. +1

A picture is worth a thousand under-valuations.

[pnwmom]

7. Or, if your uncle wasn't smart enough to understand all that

you could explain that Trump didn't just over value property. He UNDER valued the same properties when reporting values to the tax authorities. When a rich guy purposely under-values his properties to lower his taxes, that means -- for the county to make its budget -- everyone else has to pay more.

[Old Crank]

9. One other point

Is that lenders have a limit as to how much they can lend. This hopefully prevents them from going bankrupt when a percentage of loans go bad. Trump getting extra millions increases the banks risk and reduces the opportunity of another borrower from getting a legitimate loan.

[onetexan]

11. any tax cheat hurts the rest of us

[SouthernDem4ever]

12. Try and convince a dumb magat

They think he was sent by god and can do no harm.

[progressoid]

16. Still too complicated for them to understand.

[Ms. Toad]

18. Except that he has to repay it.

Loans aren't free money.

The income he earns to repay the loans is taxed. So there's no tax cheating going on.

[TheRealNorth]

19. I was thinking about it, and its similar to speeding

Speeding is still a crime, even if you don't hit/kill anyone.

[Pototan]

21. I agree with your uncle, as long

as he and Trump are willing to pay taxes on the full valuation.

the problem is, they want to value high for lower interest rates and then look for a low evaluation for ther purposes of taxes.

[DFW]

23. This reminds me of a scene in the movie "The Producers"

Gene Wilder says, ”assuming one was dishonest….” and Zero Mostel answers, ”assume away!”

Trump knows there will be property taxes. Therefore he gets crooked (bribed) assessors to drastically undervalue his properties for tax purposes.

Trump constantly spends more money than he has or is worth. Therefore, he gets crooked (bribed) property assessors at his banks to drastically overvalue his proprrties, and bases the loans he gets from those banks on the inflated value declared by his own assessor. If one of his properties is worth $10 million, he pays the loan officer to tell the bank it’s worth $100 million, so it’s therefore safe to lend him $50 million.

This works for the simple reason that he never intended to pay the loan back. If the unsuspecting bank says, ”pay us back or we seize your property,” Trump just says, I can’t pay, so go ahead, take it! After all, he already has a $50 million dollar loan on a property worth $10 million. The bank employee that approved the loan has already left the building with Trump’s $1.5 million dollar bribe in his pocket. Maybe even change his name, get a job st a new bank in a new city, and do it again.

As long as Trump never had any intention of paying back the loan (and why would he?), he has nothing to worry about. The only people who could blow the whistle on him have gotten their bribes, so they can’t talk without incriminating themselves. Trump has defaulted on his loan, the bank now owns the property, so Trump isn’t even liable for the property taxes any more.

Steal $50, and you’re a thief. Steal $50 million, and the Republicans nominate you for president.