Hey Carmine.
Are people still BLOWING money away in Vegas.
Hi Mole:
Alot fewer and alot less. Gaming stocks, once all the rage here in Vegas due to the tourism industry, are way down. Most new construction on the Casino/Hotel's is halted indefinitely, including Trump's second tower and the St. Regis [new addition to the Palozzo and Venetian]. You may have read/heard that the CEO of the MGM Grand Mirage,Mr. Lanni, resigned under very suspicious circumstances. Most of the Casino/Hotel's have cut back on the frequency and amounts of their payouts by the slots and bingo games. All have cut staff and operations drastically. The unemployment rate here in Nevada is over 8 percent, one of the highest in the nation.
Can you give us the up to date line, on whos going to go bankrupt first,G.M .CHRYSLER,OR FORD.......
Yes, in this order: GM, Chrysler and lastly Ford. Ford is in the best financial shape of all and most likely can survive, despite the hard economic times. The big 3 will get their $25 BILLION plus after they submit their business cash needs in early December 2008. All the Congressional flack is just for show. The auto industry makes considerable political campaign contributions to Senators and House members in key states and Congressional committee positions. These politicians will lobby behind the scenes for the big 3. After Mommy Pelosi announced that Congress would not oblige the demands of the big 3 yesterday, the market tanked 444.99 points. Not too bright on Pelosi's part.
Heres a tip for the gamblers in VEGAS stay away from the windows, is your house worth %25 or % 50, less than a year ago.......
Due to the recent casino/hotel opening, the houses in my community hit bottom and turned up and their long term price trend is up. However, here's the clinker: When the CFO of the new casino/hotel appeared recently to testify and answer questions, he was asked point blank: Will the new casino/hotel revenues meet the debt and bank covenants. His reply was: I don't know. Since $400 MILLION of the effort is financed, it's a huge amount to meet monthly, not counting costs for operation. Some rumors are circulating that as early as this January 2009, the owners may ask for bankruptcy proceedings. Rumors! I think that is too early but by spring/summer after several months and quarters, it could very likely happen if gaming revenue is down. The gaming money feeds the hotels, entertainment, and restaurants. If its down, so is everything else.
Time will tell. Best case scenario, a turn around by the end of 2009. Worse case scenario, no turn around until 2012.
Carmine D.