In Atlantic City, Trump and his companies made false promises, didn’t pay contractors, and walked away with the profits anyway, as several US media reported.
Very big promises, which went bust – and he ran away from the ruins.
Atlantic City shows Trump is an egomaniac and ruthless money-maker without responsibilities for his investors and the small business people who believe in his promises.
He did not make Atlantic City “the 8th world wonder” (Trump), not “Great Again” (Trump), but reduced it to ruins.
He made “incredible money” (Trump), but the people involved lost a lot.
Why does he not pay his millions back to the small businesses and the people of Atlantic city now?
If he even could not manage one casino in a small city, how the USA and the Free World?
If he does this to the investors and the people of Atlantic City, why would the American people trust him with the whole country?
Is the U.S. next: big talk, down-the-hill at the very end and then run away?
Donald Trump has supposedly forged his political career on the basis of one important characteristic: his ability to run a profitable business. He promises to “Make America Great Again” with his entrepreneurial prowess, especially his “success” with Atlantic City. However, the Democrats have made a strong point against him:
Trump has exploited small business owners and risked other people’s money to make his billions. #BetterThanThis pic.twitter.com/oROn07UI5C
— The Democrats (@TheDemocrats) 22 July 2016
.@realDonaldTrump, when someone puts in the work, you are supposed to pay them.https://t.co/fDVl1mWxrU
— Hillary Clinton (@HillaryClinton) August 2, 2016
The bankrupt casinos in Atlantic City and poorly-faring Trump Taj Mahal reveal another shocking story – Trump is concerned with his own profits, and doesn’t really care if his business goes bust. All that matters for him is that he can get walk away with as much money as possible.
The New York Times reported June 11, 2016: ” “Atlantic City fueled a lot of growth for me,” Mr. Trump said in an interview in May, summing up his 25-year history here. “The money I took out of there was incredible.” Mr. Trump did well. The newspaper concluded: “He put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses and other payments. The burden of his failures fell on investors and others who had bet on his business acumen.”
- Used his “charming” persona to convince investors:
- Much like he is doing with the presidential campaign, Trump showcased his background as a successful businessman in order to secure funding for his casinos. Trusting his business acumen, banks were willing to lend large amounts of money, which eventually sunk into large debts.
- Drew large salary and bonus as the business suffered debt:
- While the casinos struggled to make a profit, Donald Trump remained unaffected. The reason? He paid himself a large salary and bonuses from the businesses even as they spiraled into losses. Much like a captain sailing away with a comfortable lifeboat while his ship sunk haplessly in the sea.
- Borrowed at high interest rates:
- Going against advice by financial regulators, Trump took high-interest loans to fund the businesses at Atlantic City. This inadvertently caused the casinos to lapse into bankruptcy multiple times.
- Didn’t pay local contractors:
- Shockingly, local contractors and suppliers claimed that they were not paid for their goods and services, once the businesses started spiraling into losses. Steven P. Perskie, New Jersey’s top casino regulator in the early 1990s, said about Trump, “He put a number of local contractors and suppliers out of business when he didn’t pay them.”
- Didn’t pay construction bill:
- When Trump declared the Taj Mahal hotel as bankrupt, it nearly caused the collapse of Trias Building Specialties. Unfortunately, as the construction bill also went unpaid, the Edward J. Friel Company eventually had to close down.
- Defaulted on interest payments to bondholders:
- Trump didn’t pay bondholders their due interest, and caused them enormous losses due to going bankrupt.
- Led the businesses into bankruptcy four times:
- Trump led the Atlantic City businesses into bankruptcy a shocking four times, and it seemed like he knew the business was headed for losses, yet he forged on anyway. It appears that his strategy is to borrow money, earn exorbitantly, and then leave the company bankrupt again–earning riches while everyone else loses.
- Caused abrupt unemployment for thousands:
- As the businesses closed down, several locals were left without jobs. It is ironic that Donald Trump didn’t do much for them then, but now promises to offer all Americans better jobs and economic prosperity now.
- Made exaggerated, false promises:
- In April 1990, at the launch of the Taj Mahal gambling resort launch, worth $1 billion, Trump told reporters, “It’s truly going to be an incredible place. We’re calling it the eighth wonder of the world.” Ironically, this “wonder of the world,” attracted a lot of attention because of Trump’s earlier reputation, but then sunk into bankruptcy four times.
- Walked away with exorbitant earnings and left business with losses:
- Donald Trump himself proudly claims that he left the Atlantic City casinos as the “perfect time.” Ironically, it was “perfect” timing only for him–the investors, contractors, suppliers and employees were left reeling from the losses.
Beth Rosser of West Chester, Pa., whose father launched Triad Buiding Specialties, has quite a sharp opinion about Trump, “Trump crawled his way to the top on the back of little guys, one of them being my father. He had no regard for thousands of men and women who worked on those projects. He says he’ll make America great again, but his past shows the complete opposite of that.” Trump may be good at making money, but only for himself. As his business history shows, he knows exactly when to leave a project before it fails miserably, walking away with his amassed wealth.