What Happens When the Vegas Bubble Bursts?

Saturday, July 10, 2010
Posted in category Boom-Bubble Phenomenon

Certainly, the hotels and casinos go away, and the buffet lines get shorter, but also this:

The ignoble race to the bottom of the jobs market has officially bypassed the car-making mecca of Michigan and made its way to Nevada. The Silver State, once the country’s fastest-growing job market, has become the nation’s worst performer. Its May unemployment rate, a state record of 14 percent, is the highest in the land, dislodging Michigan from a distinction it owned for more than four years

Unemployment in Las Vegas came in at 14.1 percent in May.

What’s more, Nevada’s jobless rate has soared 8.8 percentage points since the recession began in December 2007. That’s the biggest gain of any state.

And then there’s the Vegas commercial real estate market.

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2 Responses to What Happens When the Vegas Bubble Bursts?

  1. cousin lucky says:

    July 13th, 2010 at 3:29 pm

    Eventually The Only People Going To Las Vegas Will Be The ” Public Employees ” Using Our Money To Place Their Bets With!! You Betcha!!!!!!

  2. Jeannie Queenie says:

    July 13th, 2010 at 11:32 pm

    Cousin Lucky,–With Ahnold Schwarznegger telling his state employees
    that they can forget about their cushy jobs that paid $70-75,000 a year, and get ready to settle for minimum wage at $7.25 an hour, I don’t see how they will be able to frequent casinos. The big state casino they’ve been working for for years, (the govt who gambles our money away), hit the jackpot eons ago, but like addicts, they have wasted it on pet projects, incompetence and yes, even crookedness galore. You know what they say about the sunny state of CALIFORNIA, as CA goes, so goes the nation….
    It will be interesting to see what other states follows suit.

    Here on the east coast, we see Patrick Duval, gov of MA, stupidly attempting to compete with my states/CT two casinos, Foxwoods and Mohegan Sun, both of which are suffering greatly. The MA House has passed a bill for
    two casinos and slots at four race tracks, with minimum capital investment of $500 million for each of the casinos. The average worker will make just enough to be able to apply for state aid, housing/food stamps. This is supposedly to aid the already flailing MA govt already in deep doo doo. Bad enough that the largest casino just 45 minutes from me, has found the Mashantucket Tribal Pequot Nation in big debt as a sovereign entity within the state of CT. For a pic of this fabulous building that helps to take dollars out of folks pockets that could be spent on more intelligent endeavors that could aid the economy and provide REAL jobs, not let’s pretend jobs, check out this url…http://www.ft.com/cms/s/0/930bb2f6-8de9-11df-9153-00144feab49a.html “Federally recognised tribes, such as the Pequots, operate as sovereign nations, which have their own govts, within the US. That means they cannot file for bankruptcy under US laws, although this assumption has never been tested.

    Under US tribal gaming laws only tribes can own casinos on reservation land. Unlike a typical restructuring, tribes cannot offer equity in the casino for debt relief and creditors cannot foreclose.

    Over the years, tribes have turned to gaming for revenue and borrowed billions of dollars to finance casinos such as Foxwoods, the Connecticut property owned and run by the Pequots on reservation land.

    Overall revenue grew from $121m in 1988 to $26.8bn in 2008, according to the Indian Gaming Industry Report, an annual study authored by Alan Meister, an economist with Nathan Associates.”

    As you glean from the aforesaid figure of $26.8 billion bucks in 2008, all want to ride this train to riches…but sadly, Patrick Duval of MA just doesn’t get it…2008 has come and gone, and folks just aren’t into gaming all that mcuh for big govt is doing their own gaming…..they are betting that we are all so stupid as to not see that they are rigging the tables to steal every last red cent from us. Uncle Sam’s blackjack means another black monday.

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