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Trump’s Businesses Face Debt Deadlines Amid Economic Slowdown

Trump’s Businesses Face Debt Deadlines Amid Economic Slowdown

The Trump Organization faces the prospect of paying more to borrow, getting smaller loans or selling some of its assets to manage more than $400 million of debt coming due on properties hit hard by the economic downturn.

The organization’s financial situation could become more challenging if President Trump wins re-election because of the complications, ethical quandaries and political dynamic of lending to a sitting president, according to real-estate finance executives and a lawyer who handled presidential ethics.

The Trump Organization isn’t carrying a particularly heavy debt load relative to its generally high-quality assets, and it has generated significant cash from its properties and asset sales. But the market for commercial real-estate loans is struggling.

“There’s still financing available, particularly for the right deals, but it’s definitely a more challenging environment,” said Steven Buchwald, managing director at Mission Capital Advisors, a New York-based company that helps arrange financing for commercial real-estate deals. He hasn’t worked with the Trump Organization.

Some of the Trump Organization’s properties have underperformed their lenders’ expectations.

Actual and expected cash flows

Trump International Hotel & Tower

Retail Space

Trump International Hotel & Tower

Retail Space

Trump International Hotel & Tower

Retail Space

Trump International Hotel & Tower Retail Space

Trump International Hotel & Tower Retail Space

Mr. Trump’s debt deals are likely to face more scrutiny from his political opponents if he wins a second term. Democrats have said that the debts could affect the way Mr. Trump governs. They raised the issue of the president’s finances after the New York Times reported on his tax returns and his personal guarantees of the debts he owed.

“Do you owe anybody money who is impacted by any decision you make as president of the United States?” asked California Sen. Kamala Harris, the running mate of former Vice

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Trump and Biden’s plans would both add to the debt, analysis finds

Trump and Biden’s plans would both add to the debt, analysis finds

Campaign plans from President TrumpDonald John TrumpTrump and Biden’s plans would both add to the debt, analysis finds Trump says he will back specific relief measures hours after halting talks Trump lashes out at FDA over vaccine guidelines MORE and former Vice President Joe BidenJoe BidenTrump and Biden’s plans would both add to the debt, analysis finds Trump says he will back specific relief measures hours after halting talks Chance the Rapper, Demi Lovato to play digital concert to encourage voting MORE would each add about $5 trillion to the debt over a decade, according to an analysis from the Committee for a Responsible Federal Budget (CRFB) released Wednesday.

Under the budget watchdog’s central estimates, Trump’s plan would add $4.95 trillion to the debt while Biden’s would increase the debt by $5.6 trillion. The estimates exclude spending proposals aimed at addressing the coronavirus pandemic and related economic downturn.

“The country’s large and growing national debt threatens to slow economic growth, constrain the choices available to future policymakers, and is ultimately unsustainable,” CRFB said. “Yet neither presidential candidate has a plan to address the growth in debt. In fact, we find both candidates’ plans are likely to increase the debt.”

Biden has released detailed proposals in areas including education, health care, infrastructure and taxes, while Trump has released general bullet points about his second-term agenda. CRFB interpreted Trump’s bullet points based by looking at budget proposals, previous statements and more detailed proposals from others.

Because the candidates’ proposals were often unclear, CRFB released low-cost, central and high-cost estimates of Trump’s and Biden’s plans. The group found that Trump’s plans could increase the debt by $700 billion to $6.85 trillion over 10 years, while Biden’s plans could have an impact on the debt that ranges from a $150 billion reduction

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Fed Consumer Finance Survey: Higher Debt

Fed Consumer Finance Survey: Higher Debt

The Fed’s latest Survey of Consumer Finances might come with a caveat: The data measure a period that may seem long ago and far away — the time before COVID, of course. But they show an increasing interest in online banking, an attempt to grow savings — and a higher debt burden.

At a high level, noted the Federal Reserve, between 2016 and 2019, real gross domestic product grew at an annual 2.5 percent rate, while the overall (civilian) unemployment rate slipped from 5 percent to 3 percent. Median family income was up about 5 percent in the three years through 2019, to about $58,600.

“The improvements in economic activity along with rising house and corporate equity prices combined to support continued increases in median and mean family net worth (wealth) between 2016 and 2019,” the Fed noted. Housing certainly contributed to a wealth boost, up more than 5 percent annually, while equity markets increased by double-digit percentages from 2016 to 2019.

Between 2016 and 2019, the proportion of all families that saved increased from 55 percent to 59 percent. Transaction accounts — which the Federal Reserve reported include checking, savings, money market, call accounts, and prepaid debit cards — remained the most commonly held type of financial asset in 2019. That ownership rate was more than 98 percent, growing from 2016 to 2019 to a median value that was up 11 percent to $5,300.

At least some of the improvements in financial position may also have come through private business ownership. The Fed noted that, overall, about 13 percent of families surveyed owned a business.

“Business ownership increases with income, and nearly 40 percent of families in the top decile of the income distribution owned a business,” reported the Fed.

Owning at

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