Billionaire businessman Mark Cuban on Tuesday scolded Rep. Ted Lieu (D-Calif.) for falsely claiming that Donald Trump is bankrupt.
Far-left lawmaker Lieu welcomed Trump’s remarks. Unable to secure $464 million bond This is necessary before he can appeal the New York civil fraud judgment against him.
Mr. Liu avoided basic economic understanding and took the news to mean Mr. Trump was bankrupt.
“Trump claims he’s a billionaire. But he can’t pay the $464 million judgment. That means he’s lying. How? Do you understand? Mathematics,” he posted on social media.
Mr. Liu’s post quickly gained traction on X, as it seemed to indicate that he did not understand that liquidity was not the same as someone’s net worth.
The truth is Trump teeth He is a billionaire because his assets exceed his liabilities. But that doesn’t mean President Trump is stuffing his bank accounts with billions of dollars in cash, which anyone with basic financial knowledge understands is a financial sin.
On Tuesday, Cuban took on the thankless task of helping with Liu’s education.
”[Y]You’re wrong on this one, Ted. “Net worth is very different from cash in the bank,” Cuban began.
“We have been in a zero interest rate environment for a long time, so it was foolish to keep cash in banks and money markets. In fact, the search for yield is what drove down small banks last year. It was also foolish to keep interest rates “low for so long,” he continued.
Mr. Cuban told Mr. Liu that he could argue that Mr. Trump is in this position because he is “not good at increasing his net worth.” But Mr. Cuban cannot claim that President Trump is bankrupt because the former president cannot pay his massive public debt, Mr. Liu said.
“On a more macro level, Ted: Even if interest rates have followed their long-term trend lines for the past 10 years, very few people have more than 45% of their assets in liquid assets,” Cuban explained. did. “And when it comes to bond companies, most of Mr. Trump’s assets are interests in commercial real estate and foreign assets. The bond companies that are lending to them in this commercial real estate market, if any, are not exist.”
Ryu put more effort into it, claim it That’s because there was no underwriter to guarantee the bond, meaning President Trump “has no assets or liquidity to claim he owns.”
However, it is “realistically impossible” to secure such bonds. Said insurance broker Gary Giulietti;
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