The Donald is at it again. How does a guy so obviously business smart default on his debts - again? Or is he crazy like a fox and using this to his advantage? My guess is the latter.
Let's review current news:
- The lead lender on the City's Trump International Hotel & Tower, is suing him, trying to collect a $40-million personal guarantee he made to help get financing for the 92-story high-rise.
- Trump Entertainment Resorts will have to skip a $53.1 million interest payment scheduled for Monday on its 8.5% senior secured notes due 2015 in order to maintain sufficient liquidity.
- Trump Hotels and Casinos (former symbol DJT) not to be confused with the current Trump Entertainment (symbol TRMP) goes bust.
- Trump Airlines goes bust.
- and his well documented ride to the edge of bankruptcy decades ago, spawning his book "the art of the comeback."
He started a real estate investor institute last year, if I recall correctly, right at the peak.
It seems the guy is Midas in Reverse (remember that Hollies tune?). Yet he continues to be one of the wealthiest men in the country, lives the high life and has a name to lend to designer clothing and water and is surrounded by beautiful women.
Here is someone who knows how to use the system. Don't bet against him because in the end, even if lenders and shareholders get the short end of the deal, he gets wealthier. But is it yet another sign that capitalism ran amok - like the banks? Do we have to wait for the Donald to de-lever, too?