[AA702]

Did you know the water shortage in CA is much worse than NV. Northern CA has a severe drought, seems like its about to burn up this summer because everything is dry. Gas over there is 4.60 a gallon and has way more immigrants that are illegal than NV.

[airics]

yes and also gas in 4.69 for unleaded 4.99 premium and 5.49 diesel on i-80 in illinois... just travelled it 3 days ago.

[total_genius]

There are two parts of the Las Vegas economic miracle: Real Estate and Tourism. Both are dying in Las Vegas.

To those that say Las Vegas is coming back? How when gasoline becomes so expensive that people cut their driving to an absolute minimum and airfares skyrocket due to Airline liquidations?

[airics]

what do u know about vegas, virginia boy?

[desertsun41]

Hey how come we cant divert all that excess water from Iowa to this part of the world? Cant anyone figure out how?

And why is California lacking for water when they take the majority from Lake Mead/Colorado River? Arizona takes much of it too. Nevada takes only 14% allocation of it and the damn dam is in our state. Dont answer that. I know why, Im just complaining about it.

The lack of water has already caused the Hydro Electric production to be at 40% less capacity at Lake Powell/Glen Canyon and 50% less at Hoover Dam. When the water ceases to flow, then hydro electric will cease with it. What next? $10 per KW? We will all have $3000 a month electric bills.

[LIS123]

It is true that tourism/gaming/hospitality and housing (along with related industries) are very important to the LV economy. It's also true that both industries are doing poorly (especially RE/housing).

Even if a lot of new casinos and rooms are built, it doesn't mean that tourism to LV will automatically increase especially with the very high cost of fuel. Some airlines (such as SW) have not raised prices as much or initiated as many extra surcharges. It's quite possible that they will and that others will raise fares much further. If and when this happens, it will put further strain on the LV economy. I think I read a figure where the airlines' increase in fuel cost (2008 vs. 2007) was roughly $30 Billion, whereas the increase in total fares that they were taking in (with higher fares vs. 2007) was only projected to be $4 Billion. Not a good sign at all. Plus, a trip to Vegas in many cases is 100% discretionary. When all your other costs go up significantly, it's going to be hard to make that trip. Even if people do make the trip, they may spend a lot less than usual.


I don't know if LV will soon look like Detroit, but it's quite possible that things will get worse before they get better.

[dmilll]

Originally Posted by airics

take a look ANYWHERE else... problems everywhere

Yes - but unlike "Anywhere" Las Vegas is still a tourist city largely dependant on disposable income. As energy costs continue to rise, many people are going to think twice before booking flights or making the weekend drive from S-California. I'm not saying Vegas is going to turn into the next Tombstone AZ, BUT any significant drop in tourism/conventions is certain to affect the bottom line of the many service industry workers who depend on tips to supplement their salary. IMO this will not be offset by the influx of foreign tourists as mentioned in other threads.

In the last 30 years, who can recall energy prices rising so quickly? With easy access to credit in recent years, I wonder how many more people are leveraged by debt compared to that time period. If the Fed finally decides to aggressively raise interest rates to bolster the dollar and offset inflation, it's going to get real interesting.

Vegas does seem to re-invent itself every few years and has handled past recessions well so who really knows how this will all pan out....

[lvkewlkid]

Originally Posted by AAPoolServiceLV

Did you know the water shortage in CA is much worse than NV. Northern CA has a severe drought, seems like its about to burn up this summer because everything is dry. Gas over there is 4.60 a gallon and has way more immigrants that are illegal than NV.

how does illegal immigration relate to what we are talking about?

[AA702]

Originally Posted by lvkewlkid

how does illegal immigration relate to what we are talking about?

Nothing, but the OP suggested it did with NV.

[olecapt]

Comeon guys. Vegas adjusts well to adversity. They drop the price point and keep them coming.

Vegas operators have been getting into trouble and going belly up forever. Over leveraging is a local pastime.

We are hurting on residental construction but no where near as much as you would have expected. A lot of the slack got picked up by commercial though the hispanic crews are having a miserable time. That damage is pretty much done and the economy has survived it. And I hope they stay out of the market for a long, long time.

The residental real estate market is coming back strong. Volume continues to rise. Prices are still not stable but getting closer. The buyers sense the opportunity and our moving on it.

The large strip places are effectively committed. They will get done. Even if some of the big sponsors go belly up there is more than enough invested to attract new money to finish. Echelon comes up this year...from there on out it is one after the other.

If neccessary you subsidize the airlines or start a new one. Won't be the first time. Just bribe ole SWA to offset the lost seats.

The country is in a mess and Las Vegas is there too. But relatively LV will do well. That we sell turns out to be valuable to many even in down times.