Saturday, August 20, 2016

NY Times employs financial illiterate writer to attack Trump’s empire

You would think if the NY Times was going to write a hit piece about the Republican presidential nominee, Donald J. Trump, they’d at least give the assignment to a seasoned financial writer who would know the difference between and Income Statement or a Balance Sheet. 
But the writer of this article, Susanne Craig, is none of those.  She covers politics, not the financial news.  The evidence of this is painfully obvious by what Craig emphasizes about Trump’s businesses, namely the large amount of debt his businesses carries

Craig writes:

An investigation into the real estate holdings of Donald J. Trump, the Republican presidential nominee, found complex partnerships and debts of at least double the amount to be gleaned from public filings he has made amid his campaign. 

But an investigation by The New York Times into the financial maze of Mr. Trump’s real estate holdings in the United States reveals that companies he owns have at least $650 million in debt — twice the amount than can be gleaned from public filings he has made as part of his bid for the White House. The Times’s inquiry also found that Mr. Trump’s fortunes depend deeply on a wide array of financial backers, including one he has cited in attacks during his campaign.

For example, an office building on Avenue of the Americas in Manhattan, of which Mr. Trump is part owner, carries a $950 million loan. Among the lenders: the Bank of China, one of the largest banks in a country that Mr. Trump has railed against as an economic foe of the United States, and Goldman Sachs, a financial institution he has said controls Hillary Clinton, the Democratic nominee, after it paid her $675,000 in speaking fees.

More here

Wow, Trump is in debt!  Oh my God! 

Seriously, if Ms. Craig had a rudimentary knowledge of how business works, there isn’t a major company in the United States or the world that doesn’t carry large amounts of debt.  Such debts are reported on the Liabilities section of a Balance Sheet publically held companies are required to file. 

Now Trump is a private business onto himself and there may not be a balance sheet for Ms. Craig to examine.  However, the point is that debt in itself is not anything unusual or suspicious as the NY Times attempts to imply.  It’s cheap yellow journalism that apparently doesn’t seem to beyond the so-called paper of record. 

Trump’s is a builder and he borrows money from a bank to buy materials to build a building, or a golf course, or a resort or whatever the endeavor.  In other words, he has to take on large amounts of debt to buy concrete, hire a crew, buy steel, televisions, furniture, and pay fees.  It’s the way business operates and shame on the NY Times to try and demonize it. 

Interestingly enough there a quote at the very end of the article that seems to exonerate Trump. 

“Mr. Weisselberg said that despite his holdings, Mr. Trump should not be held to the same standards that might apply to the heads of companies in highly regulated industries.”

The point of this article is to fool gullible NY Times readers who already believe Trump is the scourge of the nation while the true criminal, Hilary Clinton, is an angel of light.