Looks like Donald Trump really is broke
Most people have a hard time wrapping their heads around the concept of someone like Donald Trump being broke. Even the people who hate him, think very little of him, and see him as a fraud, still presume that he’s got to be some degree of wealthy. After all, he has his name on buildings. He lives in a mansion. And he’s been raking in donations for his nonexistent 2024 campaign, which most people suspect he’s been pocketing. But here’s the thing.
When you’re deeply in debt, any money you bring in each month just goes right back out to cover the minimum payments on your debt. It’s true for your former roommate who had $25,000 in credit card debt and had to use his entire paycheck just to make the minimum payment, only to then run up his credit cards even higher in order to pay for his own expenses the following month. That guy is broke, no matter what flashy things he buys with his credit cards. It’s just as true for someone who has billions of dollars in assets, but has a far larger amount of debt. That guy is broke too.
This brings us to a new Forbes report revealing that Donald Trump only had $93 million cash on hand in 2020. That sounds like a ton of money, until you consider his overall situation. Every single one of his business and real estate assets is reportedly upside down – except for his Washington DC hotel lease, which he just sold off.
Those liabilities should easily add up to more than cancel out $93 million. And if that’s how much cash he had on hand in 2020, when he was still in position to abuse the presidency for personal profit, his cash on hand is probably smaller here in 2022. Again, keep in mind that when a person has massive debts, any money that comes in each month just goes right back out to service that debt. For all the articles you see about Trump having brought in this or that amount of money, it just goes right back out the door each month.
By the way, when you’re parting ways with your only profitable asset, it’s because you’re so short on cash, you’re forced to sell off the only property you can sell off – even though you’re sacrificing future revenue from it – simply because it’s the only asset you can sell off for short term cash.
Donald Trump is a guy who has (probably less than) $93 million in cash, not a single asset that he isn’t upside down on, and debts that appear to easily outstrip his assets. That all points to someone with a negative net worth – in other words, someone who’s broke. He doesn’t really own those buildings with his name on them, because he’s upside down on them. Just as you don’t really own the car in your driveway if you owe more on it than it’s worth.
New York Attorney General Letitia James is about to rip Donald Trump’s financial life wide open with her civil probe into the Trump Organization. We’re about to get some hard and fast confirmation of what Trump’s financial situation really looks like behind the curtain. In the meantime, all the publicly available evidence already points to someone who’s broke, has a negative net worth, and spends every month just trying to pull together enough money to make the minimum payments on his loans as he tries to keep everything from being repossessed. In such case it truly won’t take much to financial topple him.
