Las Vegas, NV – New reports from NBC News and CNN have exposed that in 2006 and 2007, failed businessman and presumptive Republican presidential nominee Donald Trump was cheerleading the housing market crash that devastated Nevada’s economy. Nevada had the highest foreclosure rate in the country for more than five years until 2012 and continues to be one of the hardest-hit states in the aftermath of the foreclosure crisis.
“In the years leading up to the Great Recession, Donald Trump was hoping for a housing market crash so he could line his own pockets while hundreds of thousands of Nevadans lost their homes and their life savings,” said Nevada State Democratic Party Press Secretary Stewart Boss. “Nowhere in America was hit harder by the foreclosure crisis than Nevada, and Trump’s callous attitude towards the actual turmoil and suffering caused by the housing crash shows just how out of touch he is with the concerns of working families in our state. Until Trump releases his tax returns, we have no way of knowing how much he profited while Nevadans struggled through the worst economic crisis of their lifetimes.”
by ALEXANDRA JAFFE
MAY 23 2016, 12:59 PM ET
Donald Trump counseled Trump University students to take advantage of the housing bubble as an investment opportunity and said, just a year before it burst, that he was “excited” for it to end because of the money he’d make.
“People have been talking about the end of the cycle for 12 years, and I’m excited if it is,’ he told the Globe and Mail in March of 2007. “I’ve always made more money in bad markets than in good markets.”
At that time, the housing market was already beginning to decline, and just over a year later the subprime mortgage crisis hit, part of a chain reaction of events that led to the stock market crash of 2008 and cemented the Great Recession.
The subprime mortgage crisis alone caused millions of Americans to lose their homes, but that same Globe and Mail piece reports Trump was “advising investors that there are now great deals in buying subprime mortgages at a discount, and repossessed houses at low prices.”
By Jeremy Diamond, CNN
Updated 8:40 PM ET, Thu May 19, 2016
(CNN) — Two years before the housing market collapsed in 2008 and millions of Americans lost their homes, Donald Trump said he was hoping for a crash.
“I sort of hope that happens because then people like me would go in and buy,” Trump said in a 2006 audiobook from Trump University, answering a question about “gloomy predictions that the real estate market is heading for a spectacular crash.”
The U.S. housing bubble burst two years later, triggering the stock market crash of 2008 that plunged the U.S. economy into a deep recession, leaving millions of Americans unemployed.
Trump was speaking with Jon Ward, a marketing consultant who “masterminded all the initial education programs for Trump University,”according to his website. The audiobook is available on iTunes.
“If there is a bubble burst, as they call it, you know you can make a lot of money,” Trump said in the 2006 audio book, “How to Build a Fortune.” “If you’re in a good cash position — which I’m in a good cash position today — then people like me would go in and buy like crazy.”
The Trump campaign did not respond to requests for comment.