Want to Know How Trump Runs His Business?
Here is an example from Quora of how Trump runs his business.
We wish to thank Ron Wagner for responding to this thread.
He gave us a clearer view of how Trump runs his business. Someone responded to his answer to the original poster’s question about Trump.
Here’s what Ron said…
“So, here’s my take on Trump being a lousy negotiator. He didn’t need to be a good negotiator. His business model was to pay whatever the price was—he didn’t really care—because he wasn’t going to pay for it anyway.
He always knew that soon after the deal closed, he was going to renege on the loan and file bankruptcy. In fact, the more he paid, the better off he’d be in the end because the way those deals work is that after you get control, you set up shell corporations and sell assets to those corps, and make the primary company lease them back.
The higher the value you can establish for those assets, the higher the lease you can justify making your primary company pay, which puts more money into the pocket of the shell company.
In the end, Trump would file bankruptcy on the primary company and keep the assets he transferred. So, why bother negotiating a good price? If he’d spent too much time haggling, someone might have made an offer and then he’d lose out on a deal that he was going to screw everyone anyway.
Trump was (sorry, “is”) stupid, so he didn’t take it as far as Lorenzo. Now THERE was a real asshole shyster.
A good example is the Eastern computer system. It was tied at the time for being the best in the industry. American’s Sabre was the other good one. He had Eastern sell it to a shell corp he owned, for $100 million, but the details were that the shell corp paid Eastern $100,000 in cash and financed the rest of it with Eastern itself. Of course it was an interest free loan. Of course it was a balloon loan with the first payment being due in 10 years. At zero interest!
And then, Lorenzo had Eastern pay the shell corp $10 million/month to lease back the computer system that it used to own.
Are you following that? In other words, after a year Eastern had paid $20 million more to lease the asset that what it sold it for.
Then Lorenzo bankrupted Eastern, which meant it was gone and wouldn’t be around to ever collect the payment that was due in 10 years.
He did that with aircraft, gates, buildings, even down to artwork on the HQ walls in Miami. Eastern “sold” some things for $1 and then leased it back for big payments.
Lorenzo was WAY smarter than Trump.”
Here are more examples of how Trump has ruined America MORE than any other president has, and that’s saying a lot, since every president HAS ruined America except for John F Kennedy and we know that they killed him because he wanted to make America a country FOR THE PEOPLE.