Saturday, December 19, 2009

Donald Trump warns of another stock market bubble, if banks don't start lending again

Tonight, on Larry King Live, Donald Trump warned that the current minor resurgence in the stock market (the Dow closed at 10328 Friday) may turn out to be another phantom bubble, particularly if the banks don’t start lending again. Does Wall Street really like unemployment?

Trump said that “something is wrong with the system.” Rates are low but banks refuse to lend. Purchasers of Trump’s condos can’t get “end loans” to close. Trump says he would start several projects and could hire more people if banks would lend.

On Sunday Dec. 20, the NBC "Meet the Press" interview emphasized that stock in health insurance companies has risen recently in expectation that Obama will get a health reform bill through that requires mandatory insurance (in exchange for dropping pre-existing condition exlucsion), probaby without a Public Option to compete with the companies.

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