US: Trump, "Banks are not lending money".

From CNBC, 1 December 2009

The US banks, as expected, are taking the “bail out” money from their government, using it to ‘rebuild their balance sheet’ (read: salting it away or buying lower risk assets) and not entering in new lending.

Primarily, Mr. Trump was talking about borrowing to fund real estate projects, but one would have thought that he would have been coming to a bank with some degree of collateral and track record which would make him an infinitely better ‘risk’ than any viable but financially pressed local ‘Mom and Pop’ corner shop or manufacturing operation.

I suggest it would be naive to suggest that the Irish banks will do anything other than act in their own interest and follow the same course of action post-NAMA.

Blue Horseshoe

What constitutes the banks’ own interests in this country of ours? Is it pissing all over the agendas of the Fianna Fail power brokers and their wealthy friends?

Though I know what you’re saying. I’m just wondering where naivety lies in this country - we don’t have the same type of professional, democratic, and legal standards as they have in America, and we are much smaller and self contained… I’m not saying that America is perfect by any means either, just that their ‘system’ is substantially different to ours.

With regard to whether Trump is riskier than a Mom and Pop corner shop, well, it seem to me that people will always need some items from their corner shop to live. So, there is at least some income always coming in, with which to pay back loans. But in the case of Trump, once he spends his borrowed millions on building a tower, then he relies on selling residential units for a certain price, or renting out office space or retail for a certain price. But if he doesn’t get the price or rent he’s looking for, then he can’t pay back his loan. So, I would say Trump constitutes more of a risk in the current economic climate. No?