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Regarding Trump, are you seeing the words “Four Bankruptcies, No Control?”

Regarding Trump, are you seeing the words “Four Bankruptcies, No Control?”

I am seeing everyone trying to slam Trump running with this line today:

“Four Bankruptcies, No Control”

I am seeing those kinds of phrases all over Twitter and other social media in discussing Trump. Let’s understand what we are talking about here so that nobody gets this one wrong.

We are not talking about personal bankruptcies that basically means the person making the bankruptcy is without funds and is essentially washed up. Trump is not out there with his AMEX card running up huge balances, and then the bill comes in and he cannot pay. This is not his wife shopping and suddenly her Macy’s bill comes in (yes, a joke). These are business bankruptcies. They are totally different than personal, and should be understood as such.

Deal Guys

I have known many far smaller “deal guys” in my main business. They are no where near as successful as Donald Trump. Some have made many millions, BUT, they are no Donald Trump. Donald Trump is a deal guy where just about everything he touches turns to gold – or at least the value of thousands of ounces of gold. That is rare.

Donald may be the most arrogant person you have ever seen, but he is truly great at doing what he does. He is so good that he does not have to personally pledge his own fortune on the line for every deal he does. He has been and continues to be so successful that just about any source of money, such as bankers, are ready to get on board with any deal he does. His track record is so strong that they know if they do deals with Donald Trump they will make money.

Those bankers / lenders and other money people are not idiots. They understand that Donald Trump may be lending his brand name to the project, but Donald Trump is not pledging his personal or business assets to the project. Donald may have some of his own money in the project, but outside of the company created Donald Trump has no liability to the potential failures of that newly created company.

Atlantic City is no Las Vegas.

Donald tried in Atlantic city as part of a newly created company to make it big there. It was not in the cards for success, so that company folded. As Donald said in the debate, he was one of the first to exist. That was smart, as we have seen that Atlantic City is not at all Las Vegas. Outside of the Northeast corridor, nobody else in the country says “I can’t wait to go to Atlantic City!”

That company created for this deal folds and goes bankrupt. That happens. The investors lose. Even Donald Trump loses his investment. His brand takes a hit, too. Still – he did not pledge his personal net worth to this.

The bankers / lenders and other money guys could have INSISTED that Donald Trump pledge personally his net worth. Donald could then have made a decision to either do it or not do it. Really, they knew that was not an option with Trump. Most even smalltime millionaire deal makers don’t ever pledge their personal wealth against the deals they are part of. Too much can go wrong.

Donald Trump did NOT go bankrupt

That is fact. If you don’t like the way deals work, you are essentially a Democrat. This is the way almost every project you see out there works. Once someone has wealth, they don’t go pledging it over and over, then over and over again, finally losing it all on the sixteen project when it fails. Logic says you don’t do that.

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