View of the Moscow Kremlin. © Evgenya Novozhenina / Sputnik
Leonid Bershidsky, Bloomberg: Trump's Business Record in Russia Is Humiliating
He never had what it takes to negotiate with Moscow.
The latest Trump-Russia revelations -- this time concerning a Moscow real estate project scuttled in early 2016 -- fit in well with the comical history of Trump's attempts to do business in Russia. They are the latest proof that, unlike many craftier U.S. entrepreneurs and executives, the current U.S. president never figured out how to deal with Russians.
The story began in 1987, when Trump first visited Moscow, then the Soviet capital, and negotiated with bureaucrats from the State Foreign Tourism Committee who offered him an opportunity to build a luxury hotel in Moscow. In a Playboy interview in 1990, Trump recalled that he told the officials it was impossible to get financing for a development project in which the land was "owned by the goddamn motherland." They offered a lease; he wanted ownership. The Soviets also offered to set up a dispute resolution committee consisting of seven Russians and three Trump representatives, a deal Trump didn't like. He came away thinking, correctly, that the Soviet system was a "disaster." The Soviet leader, Mikhail Gorbachev, according to Trump, didn't have "a firm enough hand" -- which didn't prevent the flustered developer from crowing how honored he was when Gorbachev impersonator Ron Knapp paid him a surprise visit in Manhattan a year later.
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WNU Editor: I explained in this commentary yesterday on why President Trump failed in closing a real-estate deal in Russia (hint .... it's all about who has title to the land that is available for development, which in today's Moscow is held by only a few). As for Leonid Bershidsky's commentary above .... it is a good summary on why Donald Trump failed in closing a real-estate deal in Russia .... but I am not going to be harsh on Donald Trump .... he has made hundreds of millions (if not billions) elsewhere. Who else can say the same thing.
2 comments:
He has also gone bankrupt to the tune of billions of dollars. Not once, or twice, not even three times, but four times. Estimates are if he put all of the money "given to him" by his father, much more than he admits, but easily shown, put it into an index fund, he would be worth twice as much as "He says" he is worth today. He is incompetent.
How would most people, MBA or not, fare if they did not put the money in a passive investment or an index fund?
I'll say this for Soros. He is bright. He has or had financial acumen. However, there is a different dynamic, when you are small than when you are large. When you at large even a small move telegraphs your intentions. Also after a point the larger you are the harder it is to realize large returns.
This is why I think Soros was into fraud (convicted in France) and is hated by more than a few in Malaysia.
"French court convicts Soros of insider trading "
theguardian.com/business/2002/dec/20/france.internationalnews
"The ringgit's steepest slide since 1998 is evoking memories of the clash between then-Prime Minister Mahathir Mohamad and hedge-fund manager George Soros."
straitstimes.com/business/economy/soros-like-attack-on-malaysian-ringgit-revives-memories-of-1998
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