Here is the basic scheme Trump has used to accumulate his wealth (other than what he inherited from his father, who used the same method):
1. Develop a proposal for a huge real estate project that typically costs over a hundred million dollars.
2. Hawk this proposal to potential investors who are promised the world if they contribute tens of millions of dollars to the project. Many of these investors are people who either don't know how to manage big money but rather inherited a huge pot of gold (e.g., the surviving spouse of the person who generated the wealth), or are egotistical fat cats who simply want their name associated with a guy who they honestly believed was a successful real estate developer.
3. Convince those investors that they need to sign away the money into Trump's ownership with no strings attached because that supposedly was the only way Trump could secure his bank, vendors, and local city regulators to move forward with the project. This is the key part of the deal: the investors must sign the money away into Trump's ownership in exchange for a note from Trump that promises the investors a HUGE return from the profits of the project. But they must agree to a confidentiality statement that prevents them from revealing their investment in the project and includes a huge penalty clause if they violate that term.
4. Start the project in "good faith" so that investors get a good feeling about the project.
5. Create delays in the project to drag out the timeline. Tell investors that building inspectors and politicians are trying to stall the project unless they get some payola. But convince the investors that he's the hero that's doing everything possible to keep the project on track.
6. At some point in the project, declare bankruptcy due to overage in expenses because of the delays, etc., but make sure the banks are all paid using the investors' money for all expenses up to that point.
7. The result is that Trump takes in, say $300 million from investors but spends only about $100 million of that money before he declares bankruptcy, but he tells the investors that the coffers have run dry. Therefore, the investors lose most or all of their money since they signed it over to Trump and there is zero profit at the back end, while Trump pockets the remaining $200 million in his own coffers. THAT is how he's made most of his money.
I first heard of this scheme from Paul Krugman (Nobel Laureate in Economics) a few years ago and apparently Trump has done this time and time again, each project with a new set of naive investors for his money grinder. In fact, Krugman explained that in 2017 Trump was involved in over 10,000 lawsuits over the previous 10 year period which amounts to THREE NEW LAWSUITS PER DAY for 10 years!!!
He's the ultimate con man, and I have no doubt that he considers his own MAGA loyalists to be the real losers and suckers. It's just so fascinating that MAGA and the GOP lemmings in Congress continue to fall for it.
Very well presented DEMO. My hunch is that wealthy people who have been scammed lack the moral courage of brave women like E. Jean Carroll - one of my heroes. Therefore, they fail to pursue Justice with the single mindedness and tenacity required. Of course, if Mr Trump is soundly thumped in November, maybe several of his victims will find the will and courage to confront a weakened fraudster. One can only dream.
You are absolutely right! My sentiments exactly. Lets just keep on hoping and praying that Ms. Kamala Harris wins so that we do not have to sit on the edge of our seats throughout ... with fear that our country could be sold to dictators! I do not put it past Trump to do something that VILE/NASTY/DESPICABLE!
Here is the basic scheme Trump has used to accumulate his wealth (other than what he inherited from his father, who used the same method):
1. Develop a proposal for a huge real estate project that typically costs over a hundred million dollars.
2. Hawk this proposal to potential investors who are promised the world if they contribute tens of millions of dollars to the project. Many of these investors are people who either don't know how to manage big money but rather inherited a huge pot of gold (e.g., the surviving spouse of the person who generated the wealth), or are egotistical fat cats who simply want their name associated with a guy who they honestly believed was a successful real estate developer.
3. Convince those investors that they need to sign away the money into Trump's ownership with no strings attached because that supposedly was the only way Trump could secure his bank, vendors, and local city regulators to move forward with the project. This is the key part of the deal: the investors must sign the money away into Trump's ownership in exchange for a note from Trump that promises the investors a HUGE return from the profits of the project. But they must agree to a confidentiality statement that prevents them from revealing their investment in the project and includes a huge penalty clause if they violate that term.
4. Start the project in "good faith" so that investors get a good feeling about the project.
5. Create delays in the project to drag out the timeline. Tell investors that building inspectors and politicians are trying to stall the project unless they get some payola. But convince the investors that he's the hero that's doing everything possible to keep the project on track.
6. At some point in the project, declare bankruptcy due to overage in expenses because of the delays, etc., but make sure the banks are all paid using the investors' money for all expenses up to that point.
7. The result is that Trump takes in, say $300 million from investors but spends only about $100 million of that money before he declares bankruptcy, but he tells the investors that the coffers have run dry. Therefore, the investors lose most or all of their money since they signed it over to Trump and there is zero profit at the back end, while Trump pockets the remaining $200 million in his own coffers. THAT is how he's made most of his money.
I first heard of this scheme from Paul Krugman (Nobel Laureate in Economics) a few years ago and apparently Trump has done this time and time again, each project with a new set of naive investors for his money grinder. In fact, Krugman explained that in 2017 Trump was involved in over 10,000 lawsuits over the previous 10 year period which amounts to THREE NEW LAWSUITS PER DAY for 10 years!!!
He's the ultimate con man, and I have no doubt that he considers his own MAGA loyalists to be the real losers and suckers. It's just so fascinating that MAGA and the GOP lemmings in Congress continue to fall for it.
Very well presented DEMO. My hunch is that wealthy people who have been scammed lack the moral courage of brave women like E. Jean Carroll - one of my heroes. Therefore, they fail to pursue Justice with the single mindedness and tenacity required. Of course, if Mr Trump is soundly thumped in November, maybe several of his victims will find the will and courage to confront a weakened fraudster. One can only dream.
You are absolutely right! My sentiments exactly. Lets just keep on hoping and praying that Ms. Kamala Harris wins so that we do not have to sit on the edge of our seats throughout ... with fear that our country could be sold to dictators! I do not put it past Trump to do something that VILE/NASTY/DESPICABLE!