Panther
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My Heart beats True for the Red White & Blue...
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Karnal wrote on Nov 1 st, 2016 at 4:30pm: Panther, every time one's debt is wiped off, someone else loses money - in this case, the owners of junk bonds in Trump's casinos.
And we're talking billions - most from small investors who were sold a lemon. The banks got some back. Mom and pop went belly up.
Trump's debt wasn't "wiped off" in any of his bankruptcies.
The court just changed....forced his creditors to accept revised repayment particulars (the monthly payments were lowered, & the time to pay it all back was lengthened, while the interest rate was also lowered) so Trump could pay back all his debt while keeping his business above water, & protect employee jobs, the best he could, in the process.
Trump financed in many ways, usually with banks & other lending institutions.
Junk bonds, if you would dig into who manipulates those, are usually issued by others who in turn use their plunder to invest in safer undertakings.
a high-yielding high-risk security, typically issued by a company seeking to raise capital quickly in order to finance a takeover.
In all my reading I can't find anything that shows he issued any junk bonds as a regular practice, maybe you can provide us a link if you know he did.
In America, again if you'd investigate & read, the stock exchange is pretty much the same as our TAB, it's legalized gambling......sometimes you win, & sometimes you lose. On junk bonds, which you can invest in in hopes of big payouts/returns, most people usually lose, & when they do it's usually substantial, but those that win usually win a King's ransom.
Those that invest (bet) on the wrong stocks, usually get better/higher returns when they win, but the fact is they also are accepting higher risks.....your Mom & Pops in your 'theoretical scenario' were just investors that wanted an unusually higher return, & some of their risks didn't pan out as they hoped it seems......it's all in the roll of the dice. Time to invest wisely, & when it comes to unusually high yielding junk bonds, only invest what you are willing to lose, because you probably will.
Mom & Pops, & their little children too, are not the typical investors who invest in junk bonds.
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