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Part of the reason people like Trump have very fancy residences is because they are exempt under bankruptcy laws. So he can store his wealth as gold plating on

Part of the reason people like Trump have very fancy residences is because they are exempt under bankruptcy laws. So he can store his wealth as gold plating on his toilet, file for bankruptcy, get out of all the loans he can't pay, then continue on with his lackluster investing. I bet even a tax on the value won't remove that very lucrative use of it. What a principal residence as an investment does for most middle to upper-middle class Americans is force them to save some money so that they have some amount of wealth when they retire. I don't know if that is important or not, since it's not very liquid and has dire consequences if you lose it.

MR4D 4y ago
Owning a residence gives you two important things in retirement: 1 - it lowers your monthly costs (no house payment/rent to pay) 2 - it provides some protection against inflation so even in bad inflation, your housing cost won’t change.
leereeves 4y ago
> Part of the reason people like Trump have very fancy residences is because they are exempt under bankruptcy laws. So he can store his wealth as gold plating on his toilet, file for bankruptcy, get out of all the loans he can't pay, then continue on with his lackluster investing A real issue, but a bad example. Trump has never declared personal bankruptcy. A few of his 500 businesses have gone bankrupt, but all that happens when an LLC goes bankrupt is that the owners lose their investments and creditors take over the company.
- beeboop 4y ago
  i wish people would stop falling over themselves to post any random factoid about trump they read on facebook 7 years ago, it's very often missing context or just flat out wrong and really diminishes the quality of conversation that can be had
rswskg 4y ago
How is property exempt from bankruptcy? That's the first thing that goes usually?
- jrs235 4y ago
  Each state will have different laws but many states protect you from having to sell your homestead in bankruptcy.
  - rswskg 4y ago
    Interesting. Not the case in the UK!

MR4D 4y ago

Owning a residence gives you two important things in retirement: 1 - it lowers your monthly costs (no house payment/rent to pay) 2 - it provides some protection against inflation so even in bad inflation, your housing cost won’t change.

leereeves 4y ago

> Part of the reason people like Trump have very fancy residences is because they are exempt under bankruptcy laws. So he can store his wealth as gold plating on his toilet, file for bankruptcy, get out of all the loans he can't pay, then continue on with his lackluster investing A real issue, but a bad example. Trump has never declared personal bankruptcy. A few of his 500 businesses have gone bankrupt, but all that happens when an LLC goes bankrupt is that the owners lose their investments and creditors take over the company.

beeboop 4y ago
i wish people would stop falling over themselves to post any random factoid about trump they read on facebook 7 years ago, it's very often missing context or just flat out wrong and really diminishes the quality of conversation that can be had

rswskg 4y ago

How is property exempt from bankruptcy? That's the first thing that goes usually?

jrs235 4y ago
Each state will have different laws but many states protect you from having to sell your homestead in bankruptcy.
- rswskg 4y ago
  Interesting. Not the case in the UK!