re: #281 wheat-dogg

Trump made a classic blunder in opening a business: he opened two casinos in a small city that was barely able to support four existing casinos. Atlantic City is not like Vegas. It’s a small town, which did not have especially good transportation. To sell his investors on his casino projects, Trump said he would use Trump Air to fly people in from NYC and elsewhere. He didn’t. Only high-rollers and celebrities came in by helicopter. Everyone else came in by coach, like plebes.

To build his casinos, Trump borrowed a lot of money. They were over-leveraged, and the market in AC was already saturated. Plus, there were two Trump casinos competing against each other, and against four other “name-brand” casinos, which had been there for a few years already.

So, you had a recipe for disaster. Much of the proceeds had to service debt. Traffic was low, because of competition, poor accessibility and a weak economy. As I understand, the Trump casinos were not all that special — so there was no particular reason to gamble there, as opposed to the others.

That’s how you lose money running a casino. By being stupid.

The point of these businesses for Trump has never been for the business in question to ever make money. It’s to pay him a generous salary and provide him with generous perks until the business runs out of suckers willing to finance it.

He’s a PR guy. He’s absolutely shitty at running an actual, functioning business. He makes his money by slapping his names on various products and services to bilk investors and customers into financing and buying garbage. He then siphons off as much cash and perks as he can into his own pockets before the enterprises crash and burn.