Posted on 10/15/2008 9:34:26 AM PDT by BGHater
While the global plan to recapitalize banks will probably be bad for his business, driving prices higher at a time when he has the cash to buy, it is necessary and smart, real estate developer Donald Trump said Tuesday.
"We were headed for Great Depression No. 2," Trump told "Squawk Box."
As a free-market capitalist, Trump admitted feeling uncomfortable at the "artificial" injection of cash into banks, but said it was a much better idea than the original plan just to buy up distressed assets.
"It's almost socialistic, but I like it, really like it," he said. (Video: Trumps full comments)
Considering that bankers who are paid to study every aspect of bad loans couldn't value toxic debt made the plan for the government to buy bad debt a non-starter, Trump said.
"Some government guy was going to buy all the bad loans -- I don't get it," he said.
Housing is the Biggest Industry
While the plan addresses the problem of capital for banks, the root cause of the housing problem also has to be addressed, he said.
"If a person has a mortgage that's coming due, they have no way to refinance it," he said. "Something has to be done about refinancing and financing for people who want to buy houses, apartments."
"The biggest industry in the world is the housing market … and boy did we take a hit," Trump said.
But the credit markets will never be totally taken care of if oil rises again, he said, adding that oil should be $40 to $50 a barrel.
(Excerpt) Read more at cnbc.com ...
Like almost being pregnant.
Has Don's comb over ingrown to his brain?
He never was very bright. How many times has he abused the bankruptcy laws over the course of his career? Why anyone feels the need to listen to him is beyond me.
Like almost being robbed.
he couldn’t afford to have his loans called.
After that putz was pictured crying on all the newsweeklies back at “the end of the 80’s” I’d thought we were rid of this guy forever.
Needless to say, I was wrong.
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