Casino Slump on Vegas
As a follow on from last
week’s story regarding the troubles at the MGM in
Las Vegas, News 3 reported that the gaming sector was hit
by multiple disasters.
It has been said that if you invested one hundred dollars
in MGM Mirage stock in 2007, your investment would only
be worth $2 today.
In an unprecedented sign
of the global economic times, 98% of the company’s
stock value disappeared virtually overnight. This follows
on MGM signing loan agreements for billions of dollars in
a move to complete City Center, the biggest project undertaken
in Las Vegas in the last decade.
MGM’s financial woes
have extended to other casinos along the strip. Riviera
Holdings Corporation has defaulted on their $245 million
credit line, according to Wachovia Bank. Stratosphere is
proceeding with layoffs and salary cuts. Harrahs Entertainment
credit worthiness rating has been downgraded by two notches.
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