Foreclosures Sobering the Hype of Las Vegas

January 14th, 2009 | Tags: Foreclosures

Foreclosures are sobering the hype of Las Vegas in Nevada, tearing apart the veil of illusion and bringing it down to reality with a crash.

The lure of Las Vegas tempted many in search of a fortune to this paradise where the weather is balmy and taxes low. In 2002 Donald Butch together with his girlfriend Bernie Jones and his mother bought a stucco house. There were upbeat plans of bringing over his disabled sister also. But reality of tight jobs made Donald turn to refinance the loan on the house and try his hand at real estate while using the money to refurbish the house. But the hidden charges and high interest soon resulted in foreclosure and the group had to surrender the house shifting to rented quarters. There are many trying to recapture and revive their dreams to no avail.

A group of casino managers had extended their dealings to Macau, Singapore and Bahamas but the turn of the tide has left them beached. Many public officials had worked hard to squeeze water out of the desert and keep hotels and casinos running. Today they are looking around to make cuts. The image of Las Vega has taken a sound beating thanks to the foreclosure crisis.

Terry Jicinsky is the vice president of marketing of Las Vegas Convention and Visitor’s Authority that boasts of a budget of about $220 million coming in from taxes on rooms. It is the third largest convention centre in America. It coined the phrase “What happens here, stays here” in an advertising campaign. Today visitors are down by 10% from 2007. Jicinsky said, “Because our growth cycle has been going on for 20 years, you know, for many people, myself included, that’s a career. That is the entire length of your experience. We have Casino executives that started working in their 20’s and 30’s that are now in their 40’s and 50’s, where all they knew was double-digit growth year after year after year.”

The current convention news was nothing but gloomy bad news about sedate gamblers and lenders with tight purse strings. Aspiring singers are still trying to get an audition and get a break but soon the song tapers off as foreclosure clouds rumble and grumble.

The foreclosure crisis has created an economic gloom that has made holes in the pocket of the majority that is telling in all spheres of life from consumerism to gambling.