Tag Archives: Bankruptcy

We can see how Democrat presidential candidates would govern from Democrat-run states

California's ignorant Democrat governor Jerry Brown keeps failing
California’s ignorant Democrat governor Jerry Brown keeps failing

A lot of low-information voters decide who they are going to vote for based on the words the candidates speak, and how those words make them feel, and what their peers will think of them. They see their vote as membership in a club, not as a way to get policies that will actually produce real-world results. Thankfully, we can know what results Democrats produce by looking at Democrat-run states.

Let’s start with the Democrat-dominated state of California, which has pursued some of the most aggressive Green New Deal policies in recent years. The prediction from Democrats is that Green New Deal energy policies will lower the cost of energy and produce abundant energy to fuel economic growth. Is that what happened?

Consider this article from National Review:

More than 2 million people are going without power in Northern and Central California, in the latest and biggest of the intentional blackouts that are, astonishingly, California’s best answer to the risk of runaway wildfires.

[…]The same California that has boldly committed to transitioning to 50 percent renewable energy by 2025 — and 100 percent renewable energy by 2045 — can’t manage its existing energy infrastructure.

[…]California governor Gavin Newsom, who has to try to evade responsibility for this debacle while presiding over it, blames “dog-eat-dog capitalism” for the state’s current crisis. It sounds like he’s referring to robber barons who have descended on the state to suck it dry of profits while burning it to the ground. But Newsom is talking about one of the most regulated industries in the state — namely California’s energy utilities, which answer to the state’s public utilities commission.

So, what happened? What happened is that the Democrats pursued a pretty standard play book in which they regulated the energy industry, forcing them to focus on green energy. And the result of that policy was higher electricity prices, higher gas prices and blackouts. By the way, the utility company has filed for bankruptcy, which is certainly not going to help matters.

They really should have known that this would happen, because other countries, like Germany and Canada for example, tried it first. And the results are the same: higher electricity prices and rotating blackouts. Is it any wonder that business owners are fleeing the state, or outsourcing their operations to areas that are more reality-based?

But that’s not all. What else do environmentalists do? They block the thinning out of forests which prevents forest fires. So what happened next?

Meanwhile, California has had a decades-long aversion to properly clearing forests. The state’s leaders have long been in thrall to the belief that cutting down trees is somehow an offense against nature, even though thinning helps create healthier forests. Biomass has been allowed to build up, and it becomes the kindling for catastrophic fires.

As Chuck DeVore of the Texas Public Policy Foundation points out, a report of the Western Governors’ Association warned of this effect more than a decade ago, noting that “over time the fire-prone forests that were not thinned, burn in uncharacteristically destructive wildfires.”

In 2016, then-governor Jerry Brown actually vetoed a bill that had unanimously passed the state legislature to promote the clearing of trees dangerously close to power lines.

The result of their environmentalist policies? Massive wild fires. California already has a homeless epidemic going on, and the wildfires will only make that problem worse.

But that’s not all, there’s more failure to achieve in other areas:

Californians know that having tens of thousands of homeless in their major cities is untenable. In some places, municipal sidewalks have become open sewers of garbage, used needles, rodents, and infectious diseases.

Yet no one dares question progressive orthodoxy by enforcing drug and vagrancy laws, moving the homeless out of cities to suburban or rural facilities, or increasing the number of mental hospitals.

Taxpayers in California, whose basket of sales, gasoline, and income taxes is the highest in the nation, quietly seethe while immobile on antiquated freeways that are crowded, dangerous, and under nonstop makeshift repair.

Gas prices of $4 to $5 a gallon—the result of high taxes, hyper-regulation, and green mandates—add insult to the injury of stalled commuters. Gas tax increases ostensibly intended to fund freeway expansion and repair continue to be diverted to the state’s failing high-speed rail project.

Residents shrug that the state’s public schools are among the weakest in the nation, often ranking in the bottom quadrant in standardized test scores. Elites publicly oppose charter schools, but often put their own kids in private academies.

Californians know that to venture into a typical municipal emergency room is to descend into a modern Dante’s Inferno. Medical facilities are overcrowded. They can be as unpleasant as they are bankrupting to the vanishing middle class that must face exorbitant charges to bring in an injured or sick child.

No one would dare to connect the crumbling infrastructure, poor schools, and failing public health care with the non-enforcement of immigration laws, which has led to a massive influx of undocumented immigrants from the poorest regions of the world, who often arrive without fluency in English or a high school education.

Stores are occasionally hit by swarming looters. Such Wild West criminals know how to keep their thefts under $950, ensuring that such “misdemeanors” do not warrant police attention. California’s permissive laws have decriminalized thefts and break-ins. The result is that San Francisco now has the highest property crime rate per capita in the nation.

Nothing is working. It’s a complete disaster. And it has to be blamed on Democrats, because they have super-majorities in the state House and state Senate, not to mention the Democrat governor.

Although Democrats like to present themselves as science-based and intelligent, the best way to measure scientific understanding and intelligence is by comparing intentions to results. Smart, reality-based people achieve what they tell others they will achieve. If a Democrat claims that they will get X result (e.g. – you can keep your doctor, you can keep your health plan, your health insurance premiums will go down) and they get opposite results across the board, then you know that they are not scientifically-literate or intelligent.

The best way to get the results you want is to elect people with a record of achieving results. That’s why we look at a candidate’s resume and references before hiring them – at least in the private sector. Democrat voters should know better than to hire candidates based on appearances and words and feelings. We need to learn from their failures.

How well did Donald Trump do in the hotel and casino business?

Donald Trump should stick to Miss Universe pageants
Donald Trump should stick to Miss Universe pageants

This story from CBS Marketwatch looks at the only period of Trump’s career for which we have the numbers.

It says:

[T]he only part of his business track record for which we have the full picture shows that Trump wasn’t a successful executive but an absolute catastrophe.

For 10 years between 1995 and 2005, Donald Trump ran Trump Hotels & Casino Resorts — and he did it so badly and incompetently that it collapsed into Chapter 11 bankruptcy. His stockholders were almost entirely wiped out, losing a staggering 89% of their money. The company actually lost money every single year. In total it racked up more than $600 million in net losses over that period.

Trump was chairman of the board throughout the entire time, and CEO as well for about half of it.

Meanwhile, over the same period, all his competitors were enjoying an enormous boom. Take a look at our chart.

While Trump was running Trump Hotels & Casino Resorts into the ground, the Dow Jones index of gambling stocks — the index that Trump himself cited in public filings as his best benchmark — soared 160%. Investors in Harrah’s saw their stake go up by nearly 150%. MGM MGM, -2.56%  quintupled. These people were making out like bandits.

Donald Trump ran the worst performing casino company on the stock market. This isn’t a matter of “opinion.” This isn’t speculation or politics. It’s a matter of plain fact.

However, one person associated with Trump Hotels & Casino Resorts did make money:

Donald J. Trump.

A review of the company’s public filings show that over that period, while his ordinary investors were getting hosed, Trump himself was siphoning millions out of Trump Hotels & Casino Resorts through salary, “bonuses” — yes, really — and cozy “service agreements” or side deals with his private corporations.

Here’s the chart with the info from Trump’s public filings:

Trump casino and hotels performance
Trump casino and hotels performance

You can read more about his four bankruptcies on CNN Money, too.

It says:

Here’s a look at Trump’s bankruptcy track record.

1. Trump Taj Mahal, 1991

To come up with the funds he needed, he sold a 282-foot yacht, as well as the Trump Shuttle, the airline he operated at the time that flew between Washington, D.C., New York and Boston, according to media reports at the time. He had to give up half of his ownership stake in the Trump Taj Mahal, but he did retain control of the property. His largest creditor was financier Carl Icahn, who held $400 million in bonds. Now Icahn is Trump’s pick for Treasury secretary should he be elected.

2. Trump Castle Associates, 1992

In less than a year he was back in bankruptcy court for his other Atlantic City casinos. This bankruptcy included the Trump Plaza Hotel in New York, the Trump Plaza Hotel and Casino in Atlantic City as well as the Trump Castle Casino Resort. He gave up half his interest in the New York Plaza to Citibank, but retained his stake in the casinos.

3. Trump Hotel & Casino Resorts, 2004

Trump didn’t go back to bankruptcy court again until November 2004, when he filed to shed debt at his various Atlantic City casinos and a riverboat in Indiana. It was another quick trip through bankruptcy court; the company shed $500 million in debt and emerged from bankruptcy the following May. Trump turned over majority control of the company to his bondholders but remained the largest single shareholder, and he once again kept control of the casinos.

4. Trump Entertainment Resorts, 2009

His most recent bankruptcy came in 2009, after the company missed a $53.1 million bond payment. That was pretty much the end of the road for Trump in Atlantic City. While his name remained on three casinos, he resigned from the board and gave up his remaining stake in the company.

What if this guy is not a good businessman at all? His tax returns would help us decide, but he won’t release them. Everyone else has released their tax returns, but not Trump. Why not? He says that he is being audited, so the IRS won’t let him. But the IRS came out and said that he can go ahead and release them.

So what’s stopping him? What has he got to hide?

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State department: not building the Keystone XL pipeline could increase greenhouse gas emissions

From CNS News.

Excerpt:

Not building the 875-mile Keystone XL Pipeline could result in the release of up to 42 percent more greenhouse gases than would be released by building it, according to the State Department.

Not building the pipeline “is unlikely to significantly impact the rate of extraction in the [Canadian] oil sands or the continued demand for heavy crude oil at refineries in the United States,” the department noted in a long-awaited environmental report released January 31st.

But the “No Build” option is likely to result in an increased number of oil spills, six more deaths annually, and up to 42 percent higher greenhouse gas (GHG) emissions, the State Department concluded.

The proposed 36-inch pipeline would transport 830,000 barrels of crude oil each day from western Canada through the Bakken oil fields of Montana and South Dakota before connecting to an existing pipeline in Nebraska on its way to Gulf Coast refineries.

The project will create an estimated 42,100 jobs and add $3.4 billion to the U.S. economy.

This report follows last week’s report showing that the pipeline would have no major environmental impact.

Excerpt:

The long-delayed Keystone XL oil pipeline cleared a major hurdle toward approval Friday, a serious blow to environmentalists’ hopes that President Barack Obama will block the controversial project running more than 1,000 miles from Canada through the heart of the U.S.

The State Department reported no major environmental objections to the proposed $7 billion pipeline, which has become a symbol of the political debate over climate change. Republicans and some oil- and gas-producing states in the U.S. — as well as Canada’s minister of natural resources — cheered the report, but it further rankled environmentalists already at odds with Obama and his energy policy.

Now the State Department is one of the most liberal departments in the government. Unfortunately, this has not appeased the great climate science experts in Hollywood, who donate so much money to Democrat election campaigns. So long as the money keeps flowing from the high school drop-out celebrities, don’t expect this pipeline to get built. For the Democrats, it’s all about staying in power.

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