Trump Bond Failure and CRE
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All right, we’re going to talk about Donald Trump’s bond failure, failure to come up with the funds for this bond and commercial real estate market. First and foremost, this, in my opinion, is an absolute travesty of justice, quite frankly. I think it’s just patently absurd what’s going on. And after watching this to any business owner out there.
that thinks that it’s a good idea to set up shop and do business in the state of New York. Whatever happens to you at that point in time is your own fault. Because you’ve seen what can happen when you get unqualified judges like Arthur Angaron and Letitia James who basically campaigned on going after a human being.
What Donald Trump did, and I know we’ve talked about this before, by exaggerating the value of his real estate, something that, again, people involved in real estate do all the time. Yeah, sometimes it works. Sometimes it does. Again, I lived in southwest Florida where I remember people bragging to me about the value. I control X amount of real estate right now. And I was like,
Yeah, on paper until you have to go out and sell it. And this is, you know, circa 2007, 2008, when I knew exactly what was going to happen. Not a single bank was hurt by any transaction. Nobody lost any money based upon this. So to me, this is just it’s patently absurd. And quite frankly, and so I if you’re a right minded, you know, thinker human being that you can you want
someone that’s a critical thinker, is able to see both sides. You may hate Donald Trump with the heat of a thousand white sons and the way he acts and the way he talks, and I get all that. Yeah, you have to admit that this is patently ridiculous. I mean, this is just really, really stupid. Okay, take that and put that aside. Trump can’t come up with the money. Now, what does that tell you?
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about the commercial real estate market, kind of what we’ve been telling you for a while. I got story after story, trillion dollars in 2024 commercial real estate maturities could lead to hundreds of bank failures. What was interesting is you’re also taking a look at some of the major banks out there and the sizable position that they have in commercial real estate and
what’s happening and again how they’re pushing this out as far as they can, striking deals with landlords, kind of hoping and praying that things are going to change. Now again one would think that Donald Trump, let’s just throw the number out there, half a billion dollars. I mean the guy did claim not too long ago that he was worth nine billion dollars and you control all of this real estate, why couldn’t you go? Because Trump said and his people said we’ve gone to everybody.
We’ve gone to insurance companies, we’ve gone to all of these, you know, people that would issue bonds based upon this and they can’t come up with a deal. They can’t come up with a deal. And what does that tell you? Well, a lot of these insurance companies, they’ve got commercial real estate portfolios and they know well and good how dire the situation is. They don’t want it.
They’re looking at many of these assets quite frankly as overvalued and toxic.
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They talk. Trump talks about this right. And he’s in a position right now where and some of these position pieces of real estate that he have. He’s there. They’re levered. If he had to go out and try to sell these pieces of property, who’s going to buy them? They always talk about these got that building down there on Wall Street. Was it 44 Wall? I forget. Everyone’s part of that building with other investors.
Who’s stepping in and buying that building right now? They’re major tenant, ground floor tenant, walked away, they’re not there anymore. Who’s taking that building?
Again, good luck with that. I mean, with all of the distressed real estate that is all over Manhattan, you would think that vultures would be coming in and buying these buildings up. They’re not.
They’re not. And again, if Donald Trump would all of these buildings, okay, that he has in Trump Tower and the building, and he’s got one in San Francisco as well, you would think, hey, I’ll put these buildings up and you give me a loan based upon these pieces of real estate and the insurance companies, the bond issuers, they don’t want to do it.
What does that tell you? Okay, you do the math yourself. One thing that could save Trump right now, possibly, believe it or not, is that truth social platform, Digital World Acquisition Corporation, DWAC, it’s on the NASDAQ, it’s a spat.
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They are scheduled to vote on whether or not to approve a merger with the Truth Social platform. There are some lawsuits that are going on with this. Some people are suing DMTG, the Truth Social platform, because they said that they were wrongly pushed out of the venture. The SEC has approved the merger if it wants to go through.
Trump owns 79 million shares. So, I don’t know, again, the estimate could translate, I don’t know, $2.83 billion in stock that he would have in Truth Social if it merged, it ended up becoming Digital World Acquisition Company. He couldn’t sell the shares right now because there would be a lockup period for, I don’t know.
six months, maybe longer, I don’t know what the exact lockup is. However, with that position, he might be able to borrow against his stock holdings in that company that could give him the cash on hand to do that to help convince a Serti to back the bond. He already did he did he did post the bond for the 91.6 million the gene Carol.
case there that’s going to be appealed as well. But these things continue to add up. Again, kind of like two different stories rolled into one here. First and foremost, just quite frankly, how ridiculous this entire bond is and what they’re asking Donald Trump to put up. And also, again, another sign of just how weak the commercial real estate market is here in the United States. Watchdog on wallstreet.com.
