Re: Has Vegas finally over done it?


"QX" <nomail@xxxxxxxxxx> wrote in message
news:pgktm4hf0u0u0ua5pldqf9taa9358qr0r1@xxxxxxxxxx
On Wed, 14 Jan 2009 16:06:11 -0800 (PST), CLM in ND
<camarvel8@xxxxxxxxxxx> wrote:

On Jan 14, 5:54 pm, T987654321 <qwrtz...@xxxxxxxxx> wrote:
In the past Vegas has always seemed to overbuild, but in the end
they've always paid off. Has the lucky steak finally ended?

I think that the cost now is just too high to build the grandious
3000+ room resorts. You don't need $5 billion+ to build an El Cortez
or Westward Ho. I mean, LV Sands in $8 BILLION in debt! How in the
world are they ever going to pay off? Even if the Venetian/Palazzo
made a profit of $250 million/year (which no casino has EVER done),
it'd take them 32 years to pay that off & I forgot about the
interest! What did they think would happend when they took out loans
requiring payments in the $100's of millions?

Cameron

But then there is the holding company made up of international
investment groups that just went before the Clark County Commission,
looking for approvals to build the world's LARGEST hotel at 6,745
rooms, shops, restaurants and a casino.
Edge Las Vegas would be located between on Harmon between the Hard
Rock and Koval Ln. http://www.lvrj.com/business/37195784.html

Leviev's got his hands full with shedding debt:

http://www.bloomberg.com/apps/news?pid=20601109&sid=aawaWZBTZNQE&refer=home
Billionaires Burn Israeli Savers on N.Y., U.K. Deals (Update1)
By Tal Barak Harif

Jan. 14 (Bloomberg) -- Israeli pension funds helped diamond mogul Lev Leviev
snap up Manhattan real estate, including the former New York Times building,
in 2007. Now they're sharing in his losses as property prices plunge,
dragging down the value of corporate bonds that backed the deals.

Fellow billionaire Yitzhak Tshuva has the same problem after the foray by
his Delek Real Estate Ltd. into British property and roadside restaurants
helped force its bonds down 73 percent. Pension funds and individual
investors lost about 20 billion shekels ($5.1 billion), or a quarter of what
they had invested in corporate bonds, as yields fell in the four months to
November.

Now, under threat of a strike by Israel's biggest union over pension losses,
the government is proposing a bailout to help close the savings gap for
people near retirement age. Concern that some companies could be wiped out
helped drag the Tel Aviv Stock Exchange TA-25 Index down 44 percent in the
past year. . . .

Africa Israel said in August that it will sell 49.9 percent of its holding
in the Clock Tower and 49 percent of the Times building, along with its
entire stake in a Wall Street property, in order to pay back its debt. "I
don't see any problems in covering our debt or liabilities," Izzy Cohen,
chief executive officer of Africa Israel, said in an interview.

Africa Israel's inflation-linked notes due in 2012, which have dropped 65
percent in the past 12 months, were downgraded to A3 from Aa3 by Midroog
Ltd., the Israeli unit of Moody's Investors Service. Leviev's net worth
plunged by about 13 billion shekels as the company's shares fell 91 percent
in 2008.



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