Las Vegas gambling, partying signals recession isn't imminent: Chanos

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Carefree gambling and partying in Las Vegas may signal a US recession isn't imminent, short seller Jim Chanos says

"The recession that FinTwit is convinced is upon us may be delayed because it is still partying in Vegas…," the short sellerfrom Las Vegas Locally, which reported casinos on the Las Vegas Strip raked in $713 million in February, a 19% year-on-year increase. The strong growth drove overall revenues from Nevada casinos to $1.2 billion, a new record for February.

"Las Vegas Strip revenue has been a pretty good leading/coincident indicator of the US Consumer," he said, referring to an attached table showing yearly revenues from the city's famous stretch of hotels and casinos."Note the slowdowns in 2000 and 2007, before the last two recessions." Chanos' table shows that revenues from the Las Vegas Strip surged nearly 18% in 1997, slowed to 7% in 1998, then declined slightly in both 2001 and 2002 after the tech-stock bubble burst. The data stems from the University of Nevada, Las Vegas' Center for Gaming Research.

The table also shows casino takings on the Strip rose by double-digits in the mid-2000s. They slowed to 2% growth in 2007, then slumped 10% in 2008 and 9% in 2009 after the housing bubble burst.as the Federal Reserve continues to battle historic inflation. The US central bank has hiked interest rates from nearly zero to upwards of 4.75% since last March. Higher rates encourage saving over spending and make borrowing more costly, fanning fears they could choke consumer spending, cause unemployment to spike, and tank the economy.against Elon Musk's Tesla last quarter, and placed bearish wagers against AMC Entertainment, Trump-linked DWAC, and a slew of cryptocurrency companies and technology upstarts.

Source: Financial Digest (financialdigest.net)

 

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The current Vegas prosperity doesn’t signal an impending recession, it’s actually a sign of in increasing wealth gap. Rich people are getting richer, and Vegas’s demographic is getting wealthier every year

200,000 Nevadans will loose SNAP benefits this month, let's talk when their disposable income vanishes. Also, OPEC is cutting 500,000 barrels a day and gas prices will go up!

People are oblivious to reality

LasVegasLocally Happiness, like the folks on the Titanic drinking expensive Champaign as the ship is listing. The blue-collar workers and retirees I talk too in my gym are all about the increases in the cost of living and the cutbacks in their lifestyle not the Strip Casinos and gambling.

Addicts will take their monthly check and gamble at the casino. Then beg their way back home. See grown men buy “their” Harley and ride and ride util their credit cards maxed out . Escapism . Jim Chanos is delusional.

Yah because booze cocaine and strippers for the rich are definitely the metrics we should be applying to the socioeconomic situation for millions of people.

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