Today is Juneteenth and I should be doing some sort of fluff piece about it. Instead, after a few brief sentences, I’ll continue down memory lane but in a different direction.
Many Americans will be wondering why they didn’t get any mail today and the banks are closed. I am not one of them. I grew up in metro Buffalo where Juneteenth has been celebrated (albeit not as a national holiday) for decades. In many ways it is the truest end of legal slavery in America.
As my regular readers know my first real job was in banking, also in Buffalo. I learned a lesson there that many Trump sycophants would be wise (however, if they were wise, they wouldn’t be Trump sycophants in the first place) to consider. One of the types of financing we did was accounts receivable financing. If an entity had receivables (others owed them money) but were cash strapped we might lend them money against said receivables. Never did we lend them 100%. We discounted the receivables. Some were more valuable (in other words more likely to be paid) than others and therefore we were willing to lend more against them.
A receivable from the federal government was consider extremely likely to be paid on time and the bank would advance a sustainable portion in the form of a loan. A receivable from a company that was in rough financial shape might be discounted to the point that we simply would not lend against it. Obviously, most receivables fell between those two extremes and other conditions (i.e. interest rates, fees and discounting of the loan itself) might apply.
Many Trump supporters appear to be banking on Trump being reelected and issuing a presidential pardon to them. To travel back down memory lane; that is a “receivable” I wouldn’t “lend” against. Trump simply has a bad track record when it comes to paying in full and on time. Trump also has a track record of caring about himself, period. Once he is home free (assuming he somehow gets reelected, which is a bold assumption) what makes you think he will keep his word? History tells us that is unlikely.
If you don’t believe me, just ask the contractors, tenants and banks Trump has stiffed over the years. Only a fool would think that they would be treated differently.
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