Blogworld and The Imploding Casino

by mtippett | September 20, 2008 at 01:00 pm
519 views | 14 Recommendations | 11 comments

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Nothing to sell.  Nobody to buy.

Nothing to sell. Nobody to buy.

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I’m at the place where a lot of Casinos have imploded lately.  No, I’m not on Wall Street, I’m in Vegas, the scene of BlogWorld 2008.  Ordinarily I’d be excited about going to Vegas but this time around it just seems as though I’m witnessing the last gasps of American excess before peak oil, peak water, peak capitalism, sub-prime meltdowns, the collapse of the financial system and the final days of Republican one party rule make the whole place unfeasible. 

I got married in Vegas years ago.  We drove out to the desert and met our preacher man on a mesa.  We had our reception way off the strip at the Double Down Saloon and listened to Johnny Legend and the Rockabilly Bastards.  It was great but that was a long time ago. These days it just seems as though Vegas isn’t funny anymore.  The folly on steroids that defines the place is just getting too expensive.   Do we really need to drain the Pacific Northwest of water to irrigate this impossible environment?  At what point does the cost become too much to bear?  The house always wins but maybe not in the long run.  

Right now Vegas has the highest foreclosure rate in the country, unemployment is running at about 8% and huge high-rise construction projects are stopping halfway through completion.  One of the guys who works at the convention hall was telling me that in his neighborhood the number of houses being foreclosed outnumbered the occupied places by about 4 to 1. Homeless people are moving into abandoned houses.  My cabbie told me that there are drive by shootings, home invasions and crackheads in the suburbs.  You may not notice it while you’re sipping a martini at the Wynn but this place is falling apart very quickly.

So what does any of this have to do with blogging? 

One of the characteristics of a healthy society is that it understands itself.  It knows its strengths, its weaknesses and can manage in changing circumstances.  This self knowledge is formed by what we read and watch.  One of the reasons America is imploding is that the media failed to warn us of the impending crisis before it happened. They failed to engage us. They failed to report it. And we failed to listen. Clearly the model of old media is broken.  Old media sent us to war in Iraq in search of phantom threats and kept us blind to real ones here on Wall Street. 

So the opportunity for someone or some organization to fix this problem and build something valuable is colossal.   While I’m down here I want to see if bloggers are up for it.  Can we mend media or will we just magnify its flaws by becoming sycophants or parrots?  

recommend This comment thread is now closed
optic
optic
flagged this story as Good Stuff

at 14:55 on September 20th, 2008

mtippett, I like this story. It's good stuff.

apple_jamz
apple_jamz
flagged this story as Good Stuff

at 15:01 on September 20th, 2008

mtippett, I like this story. It's good stuff.

It must be so strange to be in the middle of all that extravagance and yet still realize the world is imploding around you.

Great piece.

0
mtippett

It is truly surreal. 

0
empowerlife

Greed, takes no prisoners. Real change is the answer. Bloggers have the power!

SOLARLIFE
SOLARLIFE
flagged this story as Good Stuff

at 01:39 on September 21st, 2008

mtippett, I like this story. It's good stuff. "What"s up Las Vegas", great press statement,

"One of the characteristics of a healthy society is that it understands itself.  It knows its strengths, its weaknesses and can manage in changing circumstances.  This self knowledge is formed by what we read and watch.  One of the reasons America is imploding is that the media failed to warn us of the impending crisis before it happened. They failed to engage us. They failed to report it. And we failed to listen. Clearly the model of old media is broken"                      comment: same like Investment banks are dead.

I agree, especially CNN money europe TV wanted to keep investors for weeks in bad stocks, this was paid advertising, not journalism.

0
Yuliya Talmazan

Great piece, Mike. It is amazing how conventional media all over the world, especially in the countries that sustained greatest losses from the financial crisis crunch, are STILL insisting that the situation is not ominous and is largely under control. While media must be careful in their statements to avoid the onset of global hysteria and chaos, part of their job is to ensure balanced truthful coverage instead of pretending that the world did not change in the light of recent events.

0
justj0000lie

Read more about the Blog World Expo Photo Walk

justj0000lie has contributed a photo to this story.

0
Jordan Yerman

The only place in the world where you can get married by a Captain Kirk impersonator, but water has to be piped in from thousands of miles away. 

insaniac
insaniac
flagged this story as Good Stuff

at 12:41 on September 21st, 2008

As long as "blog"remains a dirty word in the news world, I'd not count on it. Have you found evidence of that changing?

0
S S

great references...a cabbie, a worker at the convention hall...and blogworld.  There is less than 8 months inventory of foreclosures left in Vegas and hardly any new construction...and a mere 12,000 jobs coming when CityCenter opens in December 2009

0
mtippett

Here's another couple of references:

Thanks to even greater losses experienced by competitors MGM Mirage and Las Vegas Sands, Steve Wynn's Wynn Resorts is now the largest publicly traded casino company, with $3.33 billion in market capitalization.

Still, Wynn Resorts' stock price is down 76 percent from last year and Wynn himself has seen the value of his stake in the company drop from more than $3 billion to roughly $1 billion.

Kirk Kerkorian may have recently sold off part of his stake in Ford, but his casino company MGM Mirage isn't faring much better. In fact, thanks to the current financial meltdown, MGM Mirage's stock has dropped 86 percent since last October, illustrative of a larger drop in the stock prices of casino companies like Wynn Resorts and Las Vegas Sands, which has hurt the paper wealth of Steve Wynn and Sheldon Adelson. MGM Mirage's majority shareholder Kerkorian, meanwhile, has lost $13 billion on paper over the past
In 2006, casino magnate Sheldon Adelson was the world's third richest man and he boldly predicted that he would soon overtake Warren Buffett and Bill Gates

to ultimately claim the top spot. But the markets, like craps tables don't always behave as you'd like. The 75 year-old CEO of Las Vegas Sands saw that play out this year, as he lost $30 billion of his net worth. That's the same as losing $100 million a day, $4 million an hour or just more than $1,000 a second.

In fact, Adelson's is possibly the largest paper loss in U.S. history, even including the Rockefellers' $1 billion loss in the Great Depression, adjusted for inflation. (It's not the biggest loss worldwide, though.)

As a result of his massive losses, Adelson, who is probably best known for his Venetian casino on the Las Vegas strip, had to halt plans to expand into Macau and Singapore, which he was still pursuing a few months ago, despite the economic downturn and rivals like Steve Wynn's decisions to cut back on overseas development. Instead, he's invested nearly $1 billion  of his family's money into Las Vegas Sands to stave off bankruptcy.


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First Flagged at 2:55 PM, Sep 20, 2008 by optic
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