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Gaming Industry Braces for Likely Recession in 09'
LAS VEGAS, NV --
The US Casino Gaming industry is making preparations for a likely recession in 2009 as the worldwide economy continues to struggle. With consumer confidence numbers dropping across the United States, casinos and gambling-related venues will experience slowdowns through the first 2 quarters of 09'.
The casino gaming industry has been hit especially hard during the past few months. Since July of 2008, the industry as a group is down 49.8%, while the S&P 500 has fallen 29%.
One of the biggest losers so far is Las Vegas Sands Corporation (LVS), a company that has seen its stock price drop from $148 per share, all the way down to $5. Many believe the company is headed for bankruptcy within the next 30 days.
In order to thwart a possible recession, the Federal Reserve is considering another reduction in the overnight interest rate, also known as the Fed Funds Rate.
Housing stocks continue to struggle as well, a direct result of the permiscuous lending of Fannie Mae and Freddie Mac. Many have blamed Democrats for their over-zealous policy of giving out money to people who cannot afford to repay the loans. A policy referred to as 'affordable housing', led to the biggest crisis for lending institutions in history.
Most financial analysts agree the US economy will recover quickly, in the meantime, casino stocks will face a tougher time than most companies due to the nature of the business and its customers.
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