[Marxism] The Apprentice

Jim Farmelant farmelantj at juno.com
Sat Dec 18 05:20:40 MST 2004

On Fri, 17 Dec 2004 12:31:57 -0500 Louis Proyect <lnp3 at panix.com> writes:

> Under the plan, announced late Monday, Trump Hotels & Casino Resorts 
> plans 
> to enter Chapter 11 bankruptcy next month, emerging within a year.<<
> Full: 
> It seems that if Trump is a success at anything, it is at surviving 
> bankruptcy. In 1992, he also dodged a bullet.
>  >>The Washington Post, November 29, 1992, Sunday, Final Edition
> Trump Went Broke, but Stayed on Top;
> Fearing a Bankruptcy Quagmire, Lenders Made Deals With Developer
> By David S. Hilzenrath, Michelle Singletary, Washington Post Staff 
> Writers
> One day in 1990, as Donald Trump tells it, he and model Marla Maples 
> were 
> strolling along New York's Fifth Avenue when they passed a beggar.
> "You see that man? Right now he's worth $ 900 million more than me. 
> ... 
> Right now I'm worth minus $ 900 million," Trump told Maples.
> After a decade of profligate borrowing, Trump lacked the cash to 
> make his 
> loan payments. Although he owned hotels, skyscrapers, casinos and an 
> airline, his debts exceeded the value of his properties by hundreds 
> of 
> millions of dollars.
> Trump's lenders could have forced him into personal bankruptcy and 
> stripped 
> him of almost everything. But that didn't happen.

That was another example of the old saying, "If you owe the
bank $100, then you're in trouble.  If you owe the bank
$1 billion, then it's the bank that's in trouble."  Trump
was not forced into personal bankruptcy because
he was simply too big for his creditors to permit to
fail.  If he had gone down, a lot of those bankers and
investors to whom Trump owed money would
have gone down with him.  Such are the ways
of capitalism.

> Instead, the bankers and investors to whom Trump owed money made a 
> series 
> of deals that left him wealthy. They let him keep some properties 
> and took 
> control of others, and they reduced Trump's personal debt by about $ 
> 750 
> million, more than four-fifths of the total.<<

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