This is a rush transcript from “Your World With Neil Cavuto,” September 29, 2008. This copy may not be in its final form and may be updated.
NEIL CAVUTO, HOST: In the meantime, Donald Trump predicting this financial mess right on this very show long before anyone started talking about it. He also told us that we would need a huge bailout to get past this mess. What now? “The Donald,” as they call them, joins me on the phone.
Mr. Trump, good to have you back.
DONALD TRUMP, CEO, TRUMP ORGANIZATION: Hi, Neil.
CAVUTO: Now what?
TRUMP: Well, I think there is always a silver lining, and the beautiful silver lining to this is that oil is going to drop down to nothing, it’s about time. And there is nothing OPEC can do about it. And they’re taking tremendous losses like everybody else. And I love the fact that it is almost a cleansing action.
It’s cleaning up — oil got up to a phony price of $150 a barrel, and I think oil could go down to $20 or $25 or lower depending on the severity of the so-called recession, meaning depression. I love the fact that oil dropped, I guess, over $10 a day, and it will continue to drop, and that is the beauty.
If you look at what happens, every time they talk about bailout, and every time it looks like it is going to happen, oil goes up, way up. OPEC sets it. Oil goes up. It takes all of the juice out of whatever they are doing. So every time they do something that’s artificial, oil goes up.
The beauty about this is oil is going to go down like a rock, and there is nothing anybody can do about it. And I love that.
CAVUTO: You know, Donald, you’ve been one of the few executives or analysts generally on this whole debacle on the Street who have been drawing in what has been going on with oil. And many of those other experts tell me, ignore oil, if the dollar tanks, whatever it does is a moot point, because it is going to start getting expensive and all of that.
You don’t buy it. You think that in this environment where we soften up in the stock market, we potentially soften up in the economy, that softens up oil prices, and we turn it around.
TRUMP: Oil is the lifeblood. Oil — it’s no different than the blood that pumps through your body, Neil. Oil is the blood. The blood was sucked out of us by people that are making more money than anybody has ever made in the history of the world, literally, and that is literally and figuratively.
Oil is the lifeblood. Oil is going to drop, and ultimately, that is going to lead to a very strong economy. Every time they do something. Every time a move is made, if interest rates go down, oil goes up. No matter what happens that is positive, oil goes up.
So these guys, and it’s just a few people, it’s OPEC, these guys are draining the lifeblood out of our economy and out of other economies, too, making more money than anyone has ever made before.
Every time — and you watch it, Neil. If you announce today that they have met and they have worked it out, and that $700 billion is going to be brought back into the economy, it is going to be wonderful, wonderful, guess what’s going to happen?
All of the good that that has done — and I don’t say it’s negative, but all of the good that that has done, they are going to raise oil prices, and it is going to take all of that good away. So oil is going to drop like a rock if nothing happens, and that’s a good thing for our economy, and a good thing for the world.
CAVUTO: Well — gotcha. Well, it certainly dropped today. Let me ask you, though, if we do not get these guys together on a deal — I will be interviewing a number of Democrats and Republicans in this next hour, Donald.
And they seem far apart on this. So could I ask you — I know it’s a mug’s game, but let’s say there is no deal, that this thing falls apart. There is no rescue or anything like it. And the markets just have to do their thing, merciless as it can be. Play that out for me.
TRUMP: I think it’s going to be a very interesting period of time. And people with cash are going to make good deals. And lots of interesting things are going to happen.
But, you know, when you think about the deal, why is the government buying the bad loans? Why don’t they buy some of the good loans? It would be sort of nice, right? They are buying the bad money. They’re buying the bad loans.
What about the good loans? So the banks are keeping the good loans? So I would say this. People with cash will make very good deals, and they won’t need the government. I think we will survive very nicely without it.
But, again, the lifeblood of the world, of the economy, is going to be oil, and that is going to drop faster than it has ever dropped ever in history before. And, honestly, the people that invested their money in stocks and bonds, which are, you know, a lot of the oil-producing states, those people are going to use — lose more money than has ever been lost before.
It is going to be a very interesting scenario if it is not approved. And it seems hard to believe that it will be approved knowing that oil is going to tank if it is not.
CAVUTO: Very interesting. Donald, thanks for your help.
TRUMP: All right. Thank you, Neil.
CAVUTO: We are going to make you a regular, you’ve been so good with us, Donald. Thank you very much. Donald Trump.