I'm Right Again Dot Com

A new commentary every Wednesday   -  September 16, 2015


How Donald Trump Got Rich.

 Answer: 1. He inherited a thriving business from his father. 2. Various corporations that bear Donald Trump's name have filed for bankruptcy 11 times in Federal Bankruptcy courts.

From The Law Dictionary (2015 edition): "A corporation is a separate legal entity from its shareholders, other owners, board of directors and CEO.  In Chapter 11 bankruptcies (a coincidence in relation to the number of filings above), the owner's or owners' personal assets are not at risk."

Everything was done legally, but what a clever way to  cut losses and increase personal profits in the long term. However, a vast amount of debtors can testify to the long, expensive process (Lawyers get first crack at whatever assets remain and earn healthy hourly fees) of a bankruptcy. There are also costs to running a court. Trustees and their staffs expect payment. Some "secured" debtors, such as banks, are next in line, meaning that the debtors still remaining are lucky if they sometimes get pennies on the dollar, if anything. 

That would fix those Chinese though, wouldn't it, if the U.S. Government declared in bankruptcy court, that it owes more than value of its assets?  If you are a supporter of Mr. Trump, you may to pass this idea along to him.

I know that bankruptcy is intended to offer relief to many who are suffering due to  adverse circumstances beyond their control. We did away with debtor's prisons a long time ago. Often, it is the humane thing to do.

But, 11 Bankruptcies, and still claim you are a very wealthy person? That leaves a bitter taste in my mouth. It may be a successful business strategy, but I  was raised to honor your creditors and retire a debt, 100% on the dollar, plus interest, or die trying.

All other considerations aside, I would be uncomfortable in helping to hire anyone to be CEO of my country, with this on their resume.

 

-Phil Richardson, Observer of the human condition and storyteller. "He goes doddering on into his old age, making a public nuisance of himself" -  Joseph L. Menchen. 

Phil's current post can be read at:  http://www.imrightagain.com

If you wish to comment, Phil can be reached at:  

k7os (at) comcast (dot) net


"AgainRight"

 



    THE PROSPERITY COAL COMPANY: My book about hard times and union wars in the coal fields, in times past.  

   $9.95, plus shipping  For details on the novel, click: http://amzn.com/149962414X  (Amazon.com)

    

       


 

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