October 14, 2008
While the global plan to recapitalize banks will probably be bad for his business, driving prices higher at a time when he has the cash to buy, it is necessary and smart, real estate developer Donald Trump said Tuesday.
- A d v e r t i s e m e n t
“We were headed for Great Depression No. 2,” Trump told “Squawk Box.”
As a free-market capitalist, Trump admitted feeling uncomfortable at the “artificial” injection of cash into banks, but said it was a much better idea than the original plan just to buy up distressed assets.
“It’s almost socialistic, but I like it, really like it,” he said. (Video: Trumps full comments)
Considering that bankers who are paid to study every aspect of bad loans couldn’t value toxic debt made the plan for the government to buy bad debt a non-starter, Trump said.
“Some government guy was going to buy all the bad loans — I don’t get it,” he said.