Loading...
Symbols:
Authors:

Donald Trump on Oil

by: Bespoke Investment Group May 18, 2008 | about stocks: DBO / IYR / OIL / USO    

Bespoke Investment Group

About the author: From Bespoke:
Become a Contributor Submit an Article
  • Font Size:
  • Print

CNBC viewers had the "privilege" to get Donald Trump's thoughts on the economy, oil and OPEC yesterday morning. Click here to view the video. One of Trump's proposals was to "tax the oil companies into oblivion" since they're making so much money now.

Joe Kernen eventually went on to ask Trump if he would support the same taxes on real estate if it was as hot as oil was right now. Trump's response, "Yeah, but the fact is it's not hot like oil. You know, oil's been hot forever...I tell people to go into the oil business because since I've been growing up, literally, it's never had a down tick. I mean, it had one year where it was a little bit down, but basically it's never had a down tick." Kernen went on to ask about the long periods when oil didn't go anywhere, but Trump wasn't having any of it.

Below we highlight the inflation adjusted performance of oil and new home prices from 1970 to 2000. As shown, oil did nothing but tick down from 1981 to the late 90s, while real estate stayed in a pretty nice uptrend over the 30 year period. We realize these are residential real estate prices, but the trend was pretty much the same in commercial, which Trump is involved in. While oil has had its fun this decade, it definitely hasn't "never had a down tick."

click to enlarge

Related Articles

This article has 15 comments:

  •  
    May 18 03:42 PM
    Donald Trump is entertaining as hell, but completely full of sh*t. He happens to be a very (deliberately) funny speaker when you see him "in a room," but he generally contradicts himself (and not just "the truth in general") multiple times during the course of any given 20-30 minute speech. By the way, in contrast to what you implied above, he's done far more residential projects than commercial ones.
    Reply
  •  
    May 18 07:33 PM
    trump will most likely file for bk again--everything investor's touch of his they lose money--look at the casino biz in NJ.
    I am sure that his Trump Towers in las vegas has problems- who would buy a condi next to a railroad track that has trains running by it every three hours or so--I can hear the train coming! He is clueless and it is all about "the Donald"
    Great idea tax the oils until they all leave- you idiot!
    Back in 98 when oil was $11.00/barrel- I guess they planned that as well! We have not built a refinery in 30 years, cannot drill anywhere in the US that has potential huge reserves and cannot build a Nuclear Power plant either-America deserves its problems because it has created them. We produce ethanol for the way to energy independence--we get corn prices exploding- We need to drill more everywhere! When the last time we had a oil field failure ? Donald- I would suggest that you start your pre-package bk now! Oh! get a new hairdo--interesting oil and gas plays--kaz and abg.to
    Reply
  •  
    May 18 10:44 PM
    Trump is a typical wallstreet thug. Build a house of cards. Sell stock and cash out before the house of cards falls down. Oh and sell more cards to the house of cards from your private business before the final crash.

    Furthermore Donald Trump promoted real estate right up until the crash. Specifically he promoted residential as well. Got to make the sales when you can. To heck with the fact he knew it had to come down.

    Regarding Oil. Donald Trump will often sound like the tough populist when it suits him. He serves only his self interest and his alone. Truth shall not get in his way. On politics he's even worse. He support both candidates, ride the fence, and then in the end say he knew how it would end all along.

    The Donald will go bankrupt again. While I support bankrupcy laws to encourage risk taking its ridiculous when single persons can own lots and lots of mini corporations. Bleed one dry to support another then declare bankrupcy in one and not really lose a dime of his own money. This is how the Donald made his millions. He's not an investing genius. He is good at marketing his brand name but that is about it.

    Reply
  •  
    May 18 11:37 PM
    If the US doesnt adopt a comprehensive energy policy soon, the red line on your chart will keep its ascent and the blue line will decline as more and more people lose their jobs and their mortgages.

    The good thing about that episode of CNBC, was "the donald" got "trumped" by T. Boone Pickens who came on right after and, when asked by Kernen what he thought, said Trump "should stick to real estate." I mean, who you gonna believe on energy, Trump or Pickens? Pah-leeeze.
    Reply
  •  
    May 19 12:05 AM
    Trump is the man whose ego knows no bounds. I have to switch channels any time I see his face. I can't wait til his house of card collapses. He has earned it!
    Reply
  •  
    May 19 01:55 AM
    I can't believe you guys don't like the Donald isn't he one of your greatest exports, his shows are watched here (Australia) by many.
    Like him or loathe him fuel cost's will definitely pull a economy down, if you don't think so just go ask a few truckers if they expect to make their repayments this month and do they see themselves absorbing the cost's of fuel much longer.
    Over here truckers charge a fuel surcharge on top of GST and freight costs. That charge is in general 10% but fuel has gone up in the last 2 months by 35% at the pump, does that mean this latest increase in fuel of 35% can be absorbed and ignored by an already bleeding industry. The smaller operators that are the last left standing suppliers of service and reliability will surely go to the wall this time and the big operators will clean up and raise their prices. Who will be left to keep the buggers honest?
    Reply
  •  
    May 19 09:40 AM
    I'm amazed that this guy is still around. Does CNBC now air a segment called the "Morning Joke"? Maybe his apparent lack of market knowledge was the cause of his bankruptcy years ago.
    House of cards?...maybe, more likely just a bad hair facade.

    Seriously, how often in history has taxing an industry reduced prices? Drill.
    Reply
  •  
    May 19 10:16 AM
    Trump acts like a socialist when he talks about oil. I wrote about it Friday 5/16/08. theinvestingspeculator...
    Reply
  •  
    May 19 11:39 AM
    Must be a dearth of things to talk about if you have to feature Trump.
    Reply
  •  
    May 19 12:04 PM
    Hilarious. Donald's hyperbole is entertaining I'll give him that. If I wanted to lose braincells and money I would just spend my time watching CNBC.
    Reply
  •  
    May 19 12:33 PM
    He makes a good top indicator - you need celebs who have no clue about a subject to chime in with their thoughts or you can't have a true bubble.
    Reply
  •  
    May 19 01:04 PM
    DUH Tax the oil companies until they no longer exist or are owned by OPEC or Argentina and then leave the US .BRILLIANT JUST BRILLIANT
    Reply
  •  
    May 19 08:27 PM
    Trump might sound like an idiot with that talk I admit, but there is a whole slate of fools on that channel believing those GROSSLY INACCURATE inflation statistics.

    The facts are in... The Govt stated Gas prices fell last month when they went up 12%!!!!!!!!!!!!!!!!! (IN A MONTH).

    When asked about it the Govt mentioned "seasonal adjustments" HUH?

    So as Mark Haines pointed out, we can go up to the pump and ask for the "Seasonally adjusted price".

    Apparently food inflation is somewhere in the neighborhood of 40% now.

    People need to wake the heck up. Cant anyone do simple math?

    In any case Im tired of yelling about it, I give up the morons rule

    Marty
    Reply
  •  
    May 19 10:27 PM
    DONALD IS GOOD WITH BROADS, BULLSH--, AND BLOWING OTHER PEOPLES DOUGH. THE GUY IS A KNOWN CRAP THROWER WHOSE OLD MAN PUT HIM ON THE MAP. ANY SELF-RESPECTING TV PRODUCER WOULD NOT GIVE HIM THE TIME OF THE DAY.
    Reply
  •  
    May 19 11:46 PM
    Listening to Don Trump talk energy is like watching energy policy being debated in the U.S. Senate. In fact, Trump could be the next senator from New York. He's at least as big an idiot as their present duo.
    Reply
More Comments on OIL ยป
More by Bespoke Investment Group
Investment Resources
Money Managment
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Housing & Real Estate
Oil Price
Alternative Energy
Coal