Monday, February 12, 2018

PLEASE CONSIDER THE FOLLOWING

When Donald Trump had real businesses, i.e. an airline, casinos, etc, he built & ran them with a heavy debt load.  When his luck ran out, he left his lender banks holding the bag. Consequently they forced him to sell some of his properties: the airline, the Plaza Hotel, etc. & put him on a millionaire's allowance until the debt was repaid. And then they stopped lending him money.

So Trump, Inc. morphed into something simpler: selling the Trump name for a fee. Think Trump university, Trump condos, Trump steaks, Trump ties, etc. and he expanded the Trump golf clubs, financed primarily by Russian oligarchs (whatever their motivation). This formula has been a success for the Trump family.

But Trump can't quite duplicate that as POTUS so he's doing what he knows best: running the United States just like he did his businesses, i.e. with a humongous debt load. Plus he no longer has to play with those nasty oligarchs who could blow up Trump, Inc. in a nanosecond by cashing in (ergo, his political stance on Russia).

Now Trump has a compliant congress & taxpayer dollars so guess who will be left holding the bag this time? Taxpayers will be treated just like his former banks. And, as for the stock market that only 50% of us are invested in, watch out.

If you have a 401k, adjustable loans or use credit cards, your income might go down and your interest rates might go up, house prices could fall, become harder to sell (or buy), construction, food, cars, appliances, national debt costs (interest) might become more expensive. All that put together is a formula for disaster.

And Trump's financial acumen? It will have come full circle.

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