Quote:
Originally Posted by Montrealcorp
Trump just knew how to screw people .
6 bankruptcies ….
Bankrupting freakn casinos right ?
Now if you imply screwing people needs intelligence (screwing bankers might not be that easy but then again 2008…) , ok yeah .
But it’s not up high on my scale .
again, i'm not trying to call him a stable genius or anything, but this stuff is fairly common in his industry which exists on extremely high leverage
same thing with private equity where you see them declare bankruptcy quite often as well, they are so heavily leveraged in debt that some small economic downturn can make everything go tits up so they plan around it knowing that bankruptcies are a real possibility
the very fact he was able to do it so many times and still maintain and rebound signifies it was indeed the correct move
you're instead treating it like you or me where as individuals we ran up massive credit card debts
likewise, with all the lawsuits over unpaid contractors, again, super common in the industry
i have a good friend who owns a large construction company, they refuse to work for large real estate developers - won't even bother bidding on those because they know how much debt they carry and simply delaying payment by a few months or even delaying until they are sued for payment can save them hundreds of thousands in interest to creditors and that will more than make up for any additional legal fees they'll be forced to pay to settle once the contractors finally get tired and sue
the contractors who do bid on such things are aware of the extreme likelihood they won't be receiving payments on time and take that on as a cost of business
so again, in a vacuum super scumbaggy behavior, but in that industry he's in, delaying a payment to a contractor by 6 months can make or break your profitability for the year so it's something most developers do