A Given Falls

Implications: The economy of the western United States has been thought to have underpinnings that are too solid to be affected by recessions. Among these economic undertakings are the gaming and tourism facilities of Las Vegas. This assumption looks to be shaky as set forth in the subject article.    

Analysis: In earlier periods, similar assumptions of invincibility were made as to the aerospace industry in Southern California and Hollywood and Silicon Valley. Each fell by the wayside with some pain to the participants in past downturns. It is difficult to avoid the nectar here when the wheels are turning and pulling in capital. I think Las Vegas is the most seductive of the money traps when things are going good. It is the purest U.S. gaming play for sure, but the chips have been going elsewhere as the article has pointed out. The Las Vegas housing market has certainly shown extreme weakness, and now apparently the gaming interests here will retreat to market values which will reflect a less competitive position in the U.S. and world markets.