Trump isn’t interested in being honorable — he’d rather be feared

Adecade ago, a famous and successful investor told me that “integrity lowers the cost of capital.” We were talking about Donald Trump at the time, and this Wall Street wizard was explaining why then-candidate Trump had so much trouble borrowing money from domestic capital markets. His point was that the people who knew Trump best had been screwed, cheated or misled by him so many times, they didn’t think he was a good credit risk. If you’re honest and straightforward in business, my friend explained, you earn trust and that trust has real value.