Two Way Hard Three | Las Vegas Casino & Design Blog
August 16, 2007
Las Vegas and the Tightening Credit Market
Posted by HunterYou can't pick up a newspaper these days without seeing stories about the collapse of the sub-prime mortgage market and the potential trickle into other areas of the economy, including the tightening of credit.
No doubt the availability of cheap money has helped to fuel the building boom we are seeing on the Las Vegas Strip and elsewhere. As credit markets do tighten, how will that impact building in Las Vegas? Any impact? Visitors spending less in the casinos?
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Recent Comments
- All Recent Comments on one page.
- Mark D recently commented "Zephyr, here's a recent story about Elad and the credit crunch. <a href="ht..." in Las Vegas and the Tightening Credit Market
- Mark D recently commented "Olympia Gaming just announced that they are delaying their billion dollar S..." in Las Vegas and the Tightening Credit Market
- Luxury Mortgage recently commented "The current credit crunch will have a negative impact on the entire nation ..." in Las Vegas and the Tightening Credit Market
- Gregory_Zephyr recently commented "I'm thinking that the much-anticipated renovations to Sahara will also be p..." in Las Vegas and the Tightening Credit Market
- detroit1051 recently commented "Las Vegas will rue the day Columbia Sussex got Aztar: <a href="http://www.l..." in Las Vegas and the Tightening Credit Market
- Hunter recently commented "Here's one article: <a href="http://www.reuters.com/article/marketsNews/..." in Las Vegas and the Tightening Credit Market
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Comments
Here's one article:
http://www.reuters.com/article/marketsNews/idUKN8G27316520070817?rpc=44
Las Vegas will rue the day Columbia Sussex got Aztar:
http://www.lvrj.com/business/9214841.html
I'm thinking that the much-anticipated renovations to Sahara will also be put on hold for a while. However I have a bit more faith in Sahara's owners since they are at least experienced in running entertainment venues. Although the cash infusion from Wall Street equity firms buying into gaming makes big news, they are bottom line investors not visionaries. At least Harrah's still has the management team intact. To me, Columbia-Sussex is just a disaster. I also have some concerns about Elad.
I doubt the mortgage market trouble will have much impact on Vegas from a consumer perspective. If anything, Americans may pull back on spending for global travel and stick closer to home which benefits Vegas. And the international markets are not really affected--everyone still wants to visit Vegas and with American dollar exchange rates favorable, that just makes it all the more compelling for foreigners.
The current credit crunch will have a negative impact on the entire nation including Vegas. I don't look forward to the fall out. Many people do not realize that even with an 850 FICO score that certain programs are not available anymore. Very soon we will see Stated Income/Stated Asset and No Documentation Loans completely unavailable! Many loan-to-value maximums have decreased 10% within the past 3 months. Going forward 100% loans will be off the table and other exotic programs will be a thing of the past. Second mortgages will be available only to those that can provide full documentation on their income and assets.
-Jason Fox / President
Luxury Mortgage Group
(702) 290-8700
Olympia Gaming just announced that they are delaying their billion dollar Southern Highlands Resort specifically because of the credit crunch.
http://www.lvrj.com/business/9370261.html
Zephyr, here's a recent story about Elad and the credit crunch.
http://www.lasvegassun.com/sunbin/stories/nevada/2007/aug/27/082710901.html