Thursday, August 6, 2015

Trump's Money Problem

Trump's thin skin may do him in.  But when the tale is told, it may actually be his bill fold.  Having touted himself as the self funded ten billion dollar man, he cannot pass the hat.

Trump's net worth while substantial, is far less than advertised.  His estimate includes a high valuation for his name as a "brand."  Independent experts estimate he has a net worth closer to 1.5 billion. of which about 300 million is liquid.  A fortune by any standards, except perhaps, those of a self funded presidential candidate.

So far free media in the early stages has hidden that Trump is running a low budget campaign.  Bush, counting SuperPacs, has already amassed well over a hundred million dollars.  When Bush and company's bruising organizational muscle in Iowa and powerful negative advertising in New Hampshire starts to hurt,  how much of his fortune will Trump risk?  His business history indicates very little.

Trump owns only a small slice of buildings emboldened with his name.  He lends his name, for a price, not his capital. Even if he commits one half of his liquid assets he will have the small stack at the top tier candidate table.  The media, like lady luck, is fickle.  At some point you have to pay the piper, or at least the network, for a 30 second spot.

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