Let me get this straight …
If I digested your post correctly, the facts are as follows:
Cretien and partners buy hotel operation for 250,000
Cretien and partners sell hotel operation for 225,000
Duhaime borrows the whole 225,000
Cretien buys 25% of a golf course for 250,000
Cretien sells 25% of a golf course for 300,000
Chetien doesn’t collect this 300,000 because the guy won’t pay
The guy who didn’t pay Cretien buys hotel building and land for 225,000
The guy who didn’t pay Cretien borrows 225,000 to pay for this hotel and land
The guy who didn’t pay Cretien borrows 800,000 for upgrades
The guy who didn’t pay Cretien borrows an additional 90,000 for upgrade cost overruns
The guy who didn’t pay Cretien will never pay Cretien
A Cretien partner pays Cretien 300,000 for what was sold to the guy who didn’t pay
At this point, Cretien is up 50,000 because he made 75,000 on the golf course and lost 25,000 on the hotel, or was the 25,000 loss spread among Cretien and his partners, augmenting his profit.
The guy who didn’t pay Cretien cannot borrow from taxpayer owned bank. Smart bank
Cretien calls the taxpayer owned bank on behalf of the guy who didn’t pay Cretien
Cretien makes another telephone call to taxpayer owned bank
Taxpayer owned bank lends guy who didn’t pay Cretien 615,000
Taxpayer financed solidarity fund lends guy who didn’t pay Cretien an additional 615,000
Two other taxpayer financed funds lend guy who didn’t pay Cretien an additional 200,000
The Caisse gets 65,000 but it’s unclear where this came from
The taxpayers donate 188,799 through a job grant program
What I’m curious about is why on earth Cretien’s partner bought Cretien’s share of the golf course for 300,000. Most investors are motivated by the prospect of making some profit at some point in the future. This investment looked as close to being a guaranteed loser as would be humanly, or divinely, possible.
If I've misunderstood what happened, please post corrections.
Cheers, PW. |
