Trump's business record is one of crony capitalism and failure
Feb 4, 2016 11:40:44 #
Trump says he's great because he "gets things done", although, with his New York accent, he sounds a little like Tony Soprano when he says it. But what really has Trump gotten done? He's accumulated wealth through real estate investments, but was he really so good at it, or was he just living off his father's wealth?
Trump claims his net worth is over $10 billion dollars. But Forbes Magazine says he's actually only worth $4.5 billion. Trump disputes that, in classic Tony Soprano style
Im running for president, Trump told the magazine in an interview that it says lasted almost two hours. Im worth much more than you have me down [for]. I dont look good, to be honest. I mean, I look better if Im worth $10 billion than if Im worth $4 billion. Youre gonna look bad, he told Forbes. And look, all I can say is Forbes is a bankrupt magazine, doesnt know what theyre talking about. Thats all Im gonna say. Cause its embarrassing to me.
Why is Trump's net worth important? Because Trump started off with an enormous advantage, a large inheritance from his father. If he had taken his inheritance in 1982 and invested it in an index fund, he'd have $20 billion dollars; twice what he claims to have now and perhaps more than four times what he actually has.
With the "yuuuge" amounts of money he inherited, Trump has actually underperformed with his investments. That's why he had to declare bankruptcy four times. Trump portrays bankruptcy as a normal phase of business life, like leaves changing color in the fall. It isn't. Most successful businessmen never declare bankruptcy, or if they do, not more than once. Trump declared bankruptcy four times. What does that mean?
1) That Trump recklessly made purchases, relying on bad business judgment, that could never justify their purchase price based on rate of return. Just look at how he purchased the Plaza Hotel for 400 million dollars, openly boasted about how he overpaid for it, then he declared bankruptcy, and it was resold for a 75 million dollar loss.
2) Each time Trump declared bankruptcy, he caused investors who gave him money to lose tens of millions of dollars.
In fact Trump was a terrible judge of business value, and if he had been a better judge, he would have had few or no bankruptcies.
Then there is Trump's claim how well he got along with Democratic politicians:
The Democratic recipients of Trumps donations make up what looks like a Republican enemies list, including former senator Hillary Rodham Clinton(N.Y.), Sen. John F. Kerry (Mass.), Rep. Charles B. Rangel (N.Y.), Sen.Charles E. Schumer (N.Y.) and the late liberal lion Edward M. Kennedy(Mass.).
The biggest recipient of all has been the Democratic Senate Campaign Committee of New York, which has taken in more than $125,000 from Trump and his companies. Overall, Trump has given nearly $600,000 to New York state campaigns, with more than two-thirds going to Democrats.
He even gave $100,000 to Hillary Clinton's "foundation". What did Trump get in return for these donations? Trump likes to boast about how well he "gets along" with Democratic politicians and how good he is at "making deals" with them. This is crony capitalism, trading donations for political favors, like his efforts to persuade the government to seize people's private property so he could build a business development. His latest efforts was supporting ethanol to buy v**es in Iowa.
So Trump has a history of bad investments and crony capitalism. He has expanded his wealth but at a much slower rate than a smart investor would. Why is this anything to be proud of?
http://newsmachete.com/?news=1438
Trump claims his net worth is over $10 billion dollars. But Forbes Magazine says he's actually only worth $4.5 billion. Trump disputes that, in classic Tony Soprano style
Im running for president, Trump told the magazine in an interview that it says lasted almost two hours. Im worth much more than you have me down [for]. I dont look good, to be honest. I mean, I look better if Im worth $10 billion than if Im worth $4 billion. Youre gonna look bad, he told Forbes. And look, all I can say is Forbes is a bankrupt magazine, doesnt know what theyre talking about. Thats all Im gonna say. Cause its embarrassing to me.
Why is Trump's net worth important? Because Trump started off with an enormous advantage, a large inheritance from his father. If he had taken his inheritance in 1982 and invested it in an index fund, he'd have $20 billion dollars; twice what he claims to have now and perhaps more than four times what he actually has.
With the "yuuuge" amounts of money he inherited, Trump has actually underperformed with his investments. That's why he had to declare bankruptcy four times. Trump portrays bankruptcy as a normal phase of business life, like leaves changing color in the fall. It isn't. Most successful businessmen never declare bankruptcy, or if they do, not more than once. Trump declared bankruptcy four times. What does that mean?
1) That Trump recklessly made purchases, relying on bad business judgment, that could never justify their purchase price based on rate of return. Just look at how he purchased the Plaza Hotel for 400 million dollars, openly boasted about how he overpaid for it, then he declared bankruptcy, and it was resold for a 75 million dollar loss.
2) Each time Trump declared bankruptcy, he caused investors who gave him money to lose tens of millions of dollars.
In fact Trump was a terrible judge of business value, and if he had been a better judge, he would have had few or no bankruptcies.
Then there is Trump's claim how well he got along with Democratic politicians:
The Democratic recipients of Trumps donations make up what looks like a Republican enemies list, including former senator Hillary Rodham Clinton(N.Y.), Sen. John F. Kerry (Mass.), Rep. Charles B. Rangel (N.Y.), Sen.Charles E. Schumer (N.Y.) and the late liberal lion Edward M. Kennedy(Mass.).
The biggest recipient of all has been the Democratic Senate Campaign Committee of New York, which has taken in more than $125,000 from Trump and his companies. Overall, Trump has given nearly $600,000 to New York state campaigns, with more than two-thirds going to Democrats.
He even gave $100,000 to Hillary Clinton's "foundation". What did Trump get in return for these donations? Trump likes to boast about how well he "gets along" with Democratic politicians and how good he is at "making deals" with them. This is crony capitalism, trading donations for political favors, like his efforts to persuade the government to seize people's private property so he could build a business development. His latest efforts was supporting ethanol to buy v**es in Iowa.
So Trump has a history of bad investments and crony capitalism. He has expanded his wealth but at a much slower rate than a smart investor would. Why is this anything to be proud of?
http://newsmachete.com/?news=1438
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