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Friday, December 11, 2015

What does this guy get out of it?

Donald Trump is a brand.  Plain and Simple.

He has not been a "Builder" for well over a decade.

As a builder he was born as the heir to a real estate empire which he pretty well destroyed.  He went deep into debt and ruined most of his partners.  He is hated in the real estate and banking industries.  Nobody trusts him.  Least of all the employees and ex-partners that he's ruined.

Because of clever use of the bankruptcy laws he escaped with a  personal fortune - which is extremely illiquid and very difficult to value because of the illiquidity of his real estate assets.  Imagine trying to sell a golf course in the suburbs during an economic downturn.

However as a reality television based brand he has been very successful.  He licenses his name on ties, cocktail napkins, belts, sheets, socks, lighters, bath towels (all made in China) and even buildings. He is the male Kim Kardashian.

But the Reality Television business is fickle and he knows it.  He has had a great run but people are getting tired of his "You're fired" shtick on his fantasy business program.  So he's risking it all on a bid for the greatest reality television post of all; the Office of President.

He's running his campaign as a reality tv program.  And he's great at it.  He's knows what to say to get the maximum attention. And he knows that only one thing counts: Maximum Attention.

If he wins, he knows he's set financially for life.  He's watched the Clintons make hundred of millions of LIQUID CASH off the presidency.  And he wants in. He knows in a downturn his illiquid assets could evaporate.  And he knows his tv program has been trending downward in the ratings.

So he has gambled everything on the Presidency.  And he has to win.  Because even if he gets the Republican nomination and loses the general election his brand will take a huge hit.  So he will do or say anything at all to win it at all costs.  The payoff is huge. So are the risks.

He's a human brand.  And like all brands he exists for the money. 

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