The default took place in 1990 after the first Gulf war doubled the price of oil and caused a recession, yet the airline flew for another two years with the Trump name on it as the partners in the venture negotiated a sale.
No one could have predicted a spike in oil prices caused by a war in the middle east when planning such a venture.
It was a calculated risk and all the partners involved were seasoned lenders who knew the risk they were taking.
Now come down off your high horse and tell us all how many jobs you've created lately big boy.
I'll wait
When Iraq invaded Kuwait, anyone who knows squat about the oil industry knew the price of oil would go up. That invasion may not have necessarily been predictable, but the disruption in oil supplies could be anticipated during the expulsion of Iraqi forces. It's tough to produce and transport flammable liquids in a war zone. When withdrawing forces started blowing up wellheads, the price spike was going to last.
I helped get an oil boom going around 2000 in Elm Coulee Field by finding oil for a company who was eventually bought out by another company who was bought out by a Fortune 5 company. I was in the right place at the right time, and doing my job very well. That boom may have slowed down a bit (those pesky global commodity markets), but a few thousand people are still employed, and I've had a hand in making a few hundred people millionaires, just from their royalty interests. That doesn't count those who just tagged along on equity trades.
How about you? What have you been up to?
