No. of Recommendations: 8
Trump's series of financial woes in the 1980s and early 1990s disclosed the fact that he had nowhere near the CASH position to afford the public trappings that were associated with him even at that time. He was essentially a typical American living on home equity loans, continually refinancing existing properties, each time leveraging increases in appraised values to justify higher loan amounts while pulling out some of the cash to live on and pay for his planes, multiple homes, etc.
By the time his casino lark in Atlantic City went bankrupt, the banks involved in restructuring all of the debt to allow the casinos to remain open to try to produce more cash concluded that they would have to continue this practice of tossing money at Trump the individual even though The Trump Organization was taken out of the deal. Why? Because his name was still on the properties and the banks feared if his public profile slid from billionaire to bankrupt bozo, it would further impair the value of the casinos making it even less likely they would recover their money.
https://watchingtheherd.blogspot.com/2020/07/a-key...In the 1989 to 1992 time frame, Donald Trump was struggling to regain financial security after his trio of Atlantic City casino investments all tanked simultaneously. Banks involved with the casino bankruptcies were so deeply exposed that their re-investment plan to stabilize the casinos essentially guaranteed Donald Trump a mere $450,000 per month "allowance" aimed at ensuring he could maintain the Trump mystique and public persona that would continue attracting the rubes into the casinos and avoid spooking second tier creditors, triggering an irrecoverable collapse ("in for a penny, in for a pound…"). During that same time frame, his father Fred Trump was already beginning to suffer cognitive declines from still-undiagnosed Alzheimers.I doubt anything has changed. The underlying
modus operandi of the Trump business model is to run a fleet of shell companies, focus on the initial, most speculative phase of real estate developments that produce inflated valuations before reality sets in, manipulate accounting to inflate numbers involving credit, understate numbers driving taxes, screw all contractors big and small, intimidate foes via frivolous lawsuits, and bleed business money as rapidly as possible into personal assets shielded from judgment against the business entities. Wash. Rinse. Repeat.
WTH
