The recent court decision to force Donald Trump to pay $355 million to New York is backfiring.
City and state officials have been working overtime to try and reassure New York City business leaders that this tactic would not be used against them.
But one real estate investor just made a massive announcement that will bring New York to its knees.
The decision to fine Donald Trump roughly $355 million in New York has shaken the business world to its core.
Led by New York State Attorney General Letitia James, the case has followed a long list of attempts by the radical Left to use any and all resources to go after the former President.
The radical Left is starved for political retribution since they still cannot seem to accept that Trump was duly elected President in 2016.
In this specific case, the Left targeted Trump for following an extremely common business practice.
This practice is when a largely successful business owner invests in real estate and values the business based on prospective value instead of raw value.
It’s a move made by business owners who do not plan to immediately resell the property.
The reason property owners do this is to achieve better business relationships with the bank they are receiving a loan from.
The bank has the right to protest the proposed values by sending independent appraisers, but they normally choose not to do this because this practice usually benefits them as well.
The property owner receives favorable rates and the banks can boast of strong financial relationships with successful businesses on their portfolios.
It is a win-win for the lender and the borrower.
After the decision to aggressively fine Trump for following this very common practice, business owners have reconsidered investing in New York City, with some businesses already taking money out.
One real estate investor just made a huge financial announcement that will bring New York to its knees.
The multi-billion dollar real estate investment firm, Cardone Capital, has announced that they are shutting their doors in New York City and taking over $1 billion in capital with them.
“We thought this year was the opportunity to come into Chicago, California, and New York City. I’ve been waiting for 40 years now to invest in that marketplace. I was completely confident this was the year to come,” Grant Cardone told Fox in a recent interview.
“And when that ruling happened, it was like, pencils down,” he said. “Don’t touch it. Don’t go there.”
New York Governor Kathy Hochul has spent a good amount of time since the ruling trying to reassure business owners that they were only using that method to target Trump and wouldn’t use it against anyone else.
This admission of political posturing with real financial ramifications has served the opposite of its intended goal.
The business community now feels that they could be targeted for similar political adversities at any moment.
While business leaders like Cardone are spending more time looking to expand in business-friendly states like Florida and Texas in the wake of this decision, he predicted further issues for those who stay in the Big Apple.
“Additional financial concerns exist in New York for pension funds, lenders and public real estate investment trusts following civil implications from the $355 million Trump ruling, potentially causing a decline in property value and an increase in loan defaults that could roll over to regional banks,” he said.
While Letitia James and the radical Left cheer their success in this highly politicized legal battle, the financial ramifications for New York City reveals how they just shot themselves in the foot.
Patriot Political will keep you up-to-date on any developments to this ongoing story.
