Comments on: I Want My Bailout, Too… http://www.creativeclass.com/_v3/creative_class/2008/11/14/i-want-my-bailout-too/ The source on how we live, work and play Wed, 07 Dec 2011 18:10:07 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Swordsman http://www.creativeclass.com/_v3/creative_class/2008/11/14/i-want-my-bailout-too/comment-page-1/#comment-7599 Swordsman Sun, 16 Nov 2008 06:22:57 +0000 http://www.creativeclass.com/_v3/creative_class/?p=4970#comment-7599 Las Vegas's problem is that it is basically an incredibly poverty stricken city. The income numbers don't tell the whole story. Take away gambling and then omit the incomes of well-to-do retirees who do not contribute to the economy and you have a very large city with no industry or creative class and a very low income level. No bailout is going to help Las Vegas. It's economy is structured as a house of cards. Las Vegas’s problem is that it is basically an incredibly poverty stricken city. The income numbers don’t tell the whole story. Take away gambling and then omit the incomes of well-to-do retirees who do not contribute to the economy and you have a very large city with no industry or creative class and a very low income level.

No bailout is going to help Las Vegas. It’s economy is structured as a house of cards.

]]> By: Joe Powers http://www.creativeclass.com/_v3/creative_class/2008/11/14/i-want-my-bailout-too/comment-page-1/#comment-7562 Joe Powers Sat, 15 Nov 2008 14:51:33 +0000 http://www.creativeclass.com/_v3/creative_class/?p=4970#comment-7562 Of cities, I'd say Las Vegas and then maybe Miami. The RE bubble is crashing hard there, and as house prices fall, so too will property tax receipts. LV also has the problem that gambling is falling, unlike in recessions of the past. Of businesses looking for money, I'd say the sorts of business that have high capital expenditures, particularly those with long lead times, like electricity. The recession's destruction of demand and curtailed production probably will give them a little breathing room, however. Rumor has it that Boeing and Airbus are worried they might be stuck with some unsold inventory too. Railroads will take a hit to income from declining intermodal, autos and coal loads as demand for imports, cars and electricity fall, but they may be able to make up for it from folks who've looked to substitute rail for trucking in case diesel heads back up. Of course, statups will have a harder time getting venture money, since risk premiums are up. Since they don't have as much political clout as their value to society might reflect, I suspect they won't get much, however. Of cities, I’d say Las Vegas and then maybe Miami. The RE bubble is crashing hard there, and as house prices fall, so too will property tax receipts. LV also has the problem that gambling is falling, unlike in recessions of the past.

Of businesses looking for money, I’d say the sorts of business that have high capital expenditures, particularly those with long lead times, like electricity. The recession’s destruction of demand and curtailed production probably will give them a little breathing room, however. Rumor has it that Boeing and Airbus are worried they might be stuck with some unsold inventory too. Railroads will take a hit to income from declining intermodal, autos and coal loads as demand for imports, cars and electricity fall, but they may be able to make up for it from folks who’ve looked to substitute rail for trucking in case diesel heads back up.

Of course, statups will have a harder time getting venture money, since risk premiums are up. Since they don’t have as much political clout as their value to society might reflect, I suspect they won’t get much, however.

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