The prospect of Donald Trump going to jail is currently being studied by every legal mind in the country. The political implications are also being weighed as we approach the 2024 election cycle. But the real unsaid danger lies outside those issues. Trump’s business dealings strongly suggest he has built an empire on borrowed money. He has filed for bankruptcy four times and his real estate financing methods of overstating collateral to obtain loans are legend. So what will happen if the “Donald” is unable to continue running his company? Think about his lifeline to New York City banks. Imagine how many of those banks would suffer huge losses if Trump himself could not operate his business. CEO’s and Boards of Directors would crumble and some banks might even face insolvency. Would that start a financial panic? We don’t know but it’s clearly the reason why the legal and political worlds are trying to compromise a solution to the court’s findings and avoid fiscal calamity for Wall Street. Let’s see how they do it. Stay tuned.
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