I’ve always gotten a big kick out of Donald Trump. I loved the first season of The Apprentice (before, like most reality shows, it began to suck) and even read “The Art of the Deal” for a book report in 6th grade. Yup. But it’s not often that a guy who’s been on the very top AND bottom of the financial world starts yelling at banks to make more loans. Though a nice global statement like “The banks are not loaning money” sounds exciting on CNBC, it’s just not true. What is true is that banks are lowering credit lines out of nowhere and banks are tightening lending guidelines for borrowers and companies, but it’d be interesting to know the components of the deals that Donald Trump is referring to. Might be that banks aren’t lending to borrowers to buy properties in certain commercial projects because of new lending guidelines set by FHA, requiring a minimum amount of contracts to be signed before they can get in the door. If you’re a qualified borrower, you can get a home loan from a bank. Credit standards are tighter (and more normalized) and the process might take longer, but banks are making loans. These sorts-of news reports are the bane of conventional wisdom, because folks who could legitimately better their situation by buying a home or refinancing right now are listening to CNBC, and they hear Donald Trump say that banks aren’t making loans, and they decide well, the market sucks and the housing industry sucks and we’ll never get out of this recession. I talk to people regularly who think this way because of constant pounding from the news. It’s not as bad as it seems. But you might want to consider taking out a loan to pay for parking at that one lot by that bank at Clark and Illinois in downtown Chicago. Let’s get CNBC and Trump to spend some battery power on talking about the City of Big Parking. Sidenote — I did spend an extra couple minutes to find a an image of Trump with a blue tie so that it’d sort-of match the look and feel of our website. Transparency.
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