Is Trump Just A Slumdog Billionaire?

The financial crisis of 2008 revived the name of the late economist Hyman Minsky, and “Minsky moment” is perhaps the best encapsulation of the meltdown. Now JWMason.org has flagged a 1990 speech by Minsky explaining that “Trump was Brazil in drag” in the 1980s. According to Minsky, whether Trump’s properties were well managed was besides the point, and bankruptcies were a feature, not a bug. Moreover, both Trump and Mitt Romney, unlike as they may be temperamentally, were both in the same game: financial value extraction, i.e. cashing out ahead of the pop-pop of the bubble, with no regard for consequences. Guys like Trump and Romney could be terrific if their dealmaking could benefit the economy across the board and lift all boats, but that seems unlikely to me because their model was and is just rent-seeking all the way down.

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