Wednesday, October 29, 2008

Las Vegas Sands falls into quicksand!

When a stock falls from $50 to $5 losing 90% of its value in one month, it tells you the company is not going to do very well.....and the recession has just started. LVS (Las Vegas Sands) has incurred such a huge debt building casinos in Macau, Las Vegas and Singapore that it won't be able to cover interest on its debt. With the economy slowing, its financial situation can only get worse.

Many Singaporeans signed the petition against the building of casinos in Singapore but were not able to stop it from coming. Looks like the recession will do the job for you. The casinos were ill-timed with so many countries jumping onto the bandwagon at the same time - Macau, Thailand, Phillipines, Vietnam etc it was doomed to failure. I just hope that the govt does not break its promise to restrict Singaporeans entering the casino if family members object. The govt decided to allow the building of casinos citing job creation as one of the reasons. However, jobs were never the problem - we havs so many jobs we need to bring in so many foreigners to fill them. It is the high cost of living that makes it difficult for the lower income breadwinner to support a family is the real problem. Casino jobs will be similar to those jobs created in Macau. Macau residents who protested against the govt because they did not benefit at all from the casino boom. The casino would have brought with it social ills without the intended benefits

10 comments:

Anonymous said...

Whatever your religion, I believe it is a sign from the heavens above to the Cabinet ministers - play with the devil - you get burned.
Unfortunately, I hate to say MM Lee was right, PM Lee was wrong.

Anonymous said...

The best thing is, the old aunties and uncles already lost their savings to Lehman Brothers.

Even if they allow all dick and harry to enter, not many will have big money to lose anymore.

Maybe time to restructure the casino, put in more pokies and scratchies instead.

Casinos are only for a certain economic class.

Anonymous said...

Casinos are only for a certain economic class.


So they say. If really hard up for $$, the doors will be opened to any economic class.

Anonymous said...

When they open, if they are able get the financing to complete the constrution, the entrance fee for Singaporeans will be removed. Without the foreigners coming, they will need to screw the locals.

Since the govt cannot afford to let the IRs to fail and lose face, they will let them screw Singaporeans. Between businesses and citizens, it's quite clear where their favours lie.

Anonymous said...

What to do lucky, it just happened. You want to know why?.Well have we not been busy trying to fix the opposition with so many cases being tried. Yes, summary judgement helps but it still takes a lot of effort. In between we still have to suck up to China

Anonymous said...

Genting international Casino run by GIC, using CPF money. Any reason why CPF is not considered a structured product, where our CPF money is used as an insurance for Genting and Sands....

If they fold, CPF pays. Bye Bye withdrawal at 62!

muahahaha,

Anonymous said...

A few days ago, I commented the Singapore will bail them out using tax payers money.. And it just happened..!

Anonymous said...

LVS has just talk to Singapore Government, seems like our useless government wants to help them out. Not sure what help will be rendered, i guess some huge billion dollars loan might be in the offering. I wondered where this huge money comes from, when the recession is hitting singaporeans, and many poor singaporeans are surviving hard, and our dear government loves to throw money at western banks and helping casino builder like LVS when they are in dire need of cash infusion. Truly a lousy government!
Sinkies are terribly short changed!

FG

Anonymous said...

"Casinos are only for a certain economic class. "

Untrue statement.
Casinos were MEANT ONLY for a certain economic class" However, they attract everything like flies to shit.

(1) There are people who will make $50/day and spend their last dollar at the casino if given an opportunity. They are already doing it with 4D. They are usually from the lower income economic class.

(2) On a visit to Las Vegas, I met 3 gentlemen who told me they were "professional gamblers". I asked them to explain. They said that EVERY DAY, they brought in $200 to the casino. If they made $200 (total of $400), they would walk out. If they lost the $200 they brought in, they would walk out. I found that hard to believe. But they said that in order to make gambling a job, there was a need to have a lot of self control PLUS (this is very important), no real desire to gamble and only treat this like a job. They were low, to lower-middle class people who made about $1,000-$2,000/month. On some months, their income was negative.

(3) Then there is a economic class of people who casinos were meant for. People who could afford to lose a few dollars. But that class can also be broken down further, which I will not do.

Casinos in general do not bring any upside to the general population. Income earned belongs to the companies that own the casinos. Business tax goes to the government. So, as far as income is concerned, we the general population do not benefit from it. What we get is MORE PEOPLE, MORE TRAFFIC and MORE SOCIAL PROBLEMS.
The IRs were never built for the benefit of the common Singaporean. As for the jobs, it's another bunch of bull. I just learnt recently that all 5 of the local polys offer diplomas in some form of tourism. AND, most of the students are foreigners... so, as usual, more lies for a cause that we know not why.

Anonymous said...

You guys really dun know what is good for you! Can you do a better job if you are the govt? All Macau govt good at is to give their residents money and help them to retain their jobs. They even recommend pples fit for housekeeping to be accountant! That is why you nvr see any Macanese expat anywhere. They can nvr go anywhere except probably China. They cannot speak proper Mandarin, English and pls lah off course not any other dialects than Canto. If you dun gamble, nobody can force you!