A Donald Trump proposal to bail out struggling Argentina with a $40 billion loan is bumping up against economic reality with banks being asked to provide half of the amount demanding collateral or federal assurances.According to a report from the Wall Street Journal, financial institutions, includin...
They’re not lending to Trump though. They’re lending to Argentina, and they would get their money back from Argentina.
But banks know they won’t get their money back, since Argentina had to be bailed out 20 times in the past 70 years. That’s on average, every 3.5 years.
What are the chances they won’t need another bailout in the next 5 years? And what are the chances of banks getting their money back from a country that goes bankrupt every 3.5 years?
I wouldn’t lend Trump $40B either. Dude’s already been convicted of 34 counts of loan fraud.
They’re not lending to Trump though. They’re lending to Argentina, and they would get their money back from Argentina.
But banks know they won’t get their money back, since Argentina had to be bailed out 20 times in the past 70 years. That’s on average, every 3.5 years.
What are the chances they won’t need another bailout in the next 5 years? And what are the chances of banks getting their money back from a country that goes bankrupt every 3.5 years?
That’s the main reason.
I would neither lend money to Trump or Argentina.
It’s $20B from banks, $20B from the US government.