Tags: Trump Administration | Sam Zell | Trump | Economy | Obama

Zell: 'Extraordinary Opportunity' for Trump to Revive Economy Obama Killed

(Getty/Jeff J Mitchell)

By    |   Thursday, 11 May 2017 04:54 PM

Billionaire real-estate investor Sam Zell said President Donald Trump has an "extraordinary opportunity" to revive an economy that died under eight years of regulatory oppression under Barack Obama.

"I think we've had 8 years of kind of an anti-business administration with very little representation from the business community," Zell told TheStreet.

Zell wasn't fond of President Obama's nearly $1 trillion stimulus plan back in 2009, The Street noted. "I think President Trump has a similar stimulus opportunity but without the debt because he can achieve that goal by deregulation," the Equity Group Investments chairman added.

Zell made similar comments on CNBC this week in a media blitz to promote his new book “Am I Being Too Subtle?”

Zell called Obama’s $787 billion American Recovery and Reinvestment Act of 2009 a "half-a----d stimulus bill."

Trump has given Main Street and Wall Street "hope and optimism" on the economy, Zell told CNBC.

Trump could repeal enough regulations to give a $1 trillion boost to the economy, Zell said, adding he's more optimistic today than he was before the election.

He said deregulation can "achieve the same objective [and] really create stimulus and spend no money."

Meanwhile, in terms of commercial real estate amid the recent store closures at Sears Holdings, Macy's and J.C. Penney, Zell doesn't think landlords will be able to find new tenants that can attract the same amount of traffic as the big-box stores, The Street explained.

"There's a reason why [those stores] paid almost no rent - their goal was to generate traffic," he said.

Meanwhile, Morgan Stanley predicts there is a 25 percent chance that a recession will occur over the coming year under Trump, down from 40 percent in a July 2006 prediction under Obama.

“A stronger global backdrop and the delayed promise of tax reform have lowered this assessment from 30% previously,” Ellen Zentner, a Morgan Stanley economist wrote in a note to clients, MarketWatch reported.

In July 2016, it had forecast a 40% chance of a recession.

The investment bank’s methodology incorporates “a blend of conditional and unconditional methods,” and indicates “a very low risk of recession beginning over the next six months.”

For its part, the Federal Reserve recently downplayed weak first-quarter economic growth while emphasizing the strength of the labor market, in a sign it was still on track for two more rate rises this year.

In a bullish statement following the end of a recent two-day policy meeting, the central bank also said consumer spending continued to be solid, business investment had firmed and inflation has been "running close" to the Fed's target, Reuters reported.

(Newsmax wire services contributed to this report).

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Billionaire real-estate investor Sam Zell said President Donald Trump has an "extraordinary opportunity" to revive an economy that died under eight years of regulatory oppression under Barack Obama.
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2017-54-11
Thursday, 11 May 2017 04:54 PM
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