Comments by "" (@DavidJ222) on "Economist reacts to Trump's tweet: Nothing like this has ever happened before" video.
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Trump is doing to America, what he did to his casinos.
In 1990 Trump ran his casinos into the ground, and he almost brought down an entire city with them. Trump has said he got out of Atlantic City at the right time and that he left a rich man. But financial and legal records obtained through the Freedom of Information Act offer a glimpse into how he bankrupt his casinos.
On April 18, 1990, just two weeks after the Trump Taj Mahal opened its doors, Trump sat down for an interview with Larry King, in a suite at the new casino.
"The Taj Mahal is a tremendous success. The things that I do are trophies," Trump told King.
At this point, the Taj Mahal had already experienced four days in which its bank account contained less than zero dollars, with deficits as deep as $1.7 million dollars. It had been open for only 16 days, according to a NJ Division of Gaming Enforcement report from 1990.
The lack of money raised so many red flags that, by June, the state's Division of Gaming Enforcement began monitoring the Taj's bank balances on a daily basis -- a very unusual practice, according to a former Casino Control Commission regulator. The regulator said that the opening of the Taj Mahal was "especially absurd," particularly because of its high debt.
Trump already had other Atlantic City casinos -- the Castle, Regency and Penthouse -- and they were cash drains, according to a report issued by the New Jersey Casino Control Commission in August 1990.
They were "generating an insufficient level of cash flow" that was pushing the Trump Organization towards "financial collapse," the report said. Trump had a lot on the line. The Trump Organization was approximately $3.4 billion in debt, $832.5 million of which was personally guaranteed by Trump, according the 1990 Casino Control Commission report.
The New Jersey Division of Gaming Enforcement's report chronicled the dire condition of the Trump Organization, revealing that it wasn't bringing in enough money to support daily operations or its debt. Trump used junk bonds at high interest rates — even though he had testified before the casino commission that he wouldn't, according to the former Commission regulator.
At the time of the Taj Mahal's opening, a number of slot machines were failing. Trump told King that this was because the machines were "too hot" -- so busy that they shut down. However, reports at the time showed that Trump's back of the house couldn't keep proper track of the money coming in and out of the machines.
During the first month, the Taj's revenue fell below forecasted levels. And this trend continued through the summer.
The Casino Control Commission began fielding calls and letters from contractors angry they hadn't been paid by the Trump Organization. At least four lawsuits were filed in just one month claiming as much as $80 million, according to the August 1990 Division of Gaming Enforcement report.
Trump offered to pay $20 million in cash to contractors, and issued notes for the remaining $50 to $60 million over the next five years.
There was a deadline hanging over the Trump Organization's head: June 15, 1990.
Trump had a personal loan payment of approximately $28 million due, and Trump Castle had to come up with $20 million, according to the Division of Gaming Enforcement report. Trump Castle couldn't make it -- it was in default, though with a 10-day grace period.
Then on June 26, in what the Casino Control Commission describes as "an 11th hour" save, Trump sought a $65 million dollar loan from nine banks -- $20 million was handed out that day, allowing the organization to make its immediate payments.
Less than a year later, the Taj Mahal filed for Chapter 11 bankruptcy in 1991.
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