Repossessions Rife in Las Vegas
Las Vegas
Once a shining of the American dream in action, Las Vegas has now become a city of repossessions, unemployment and homelessness, due to the recession.
The city, which was famed for its constant constructions, ever-growing casinos and luxury homes, hit rock bottom earlier this year, and now residents are paying the price. Repossessions are rife in the gambling capital, with more and more banks foreclosing on homes that previous residents simply couldn’t afford without what’s known as a sub-prime mortgage; a loan within “the riskiest category of consumer loans”.
Both the LA Times and the BBC have reported on how a city which was once made up of “dreamers” has now become symbolic of the recent economic crash. The LA Times spoke to now unemployed casino dealers, who headed to Las Vegas in search of wealth and prosperity, only to become unemployed and facing foreclosure on their homes.
The BBC spoke to Harrah’s CEO Gary Loveman, who suggested the following about the economic downturn in Las Vegas: "Right in the middle of September we started to experience a 20% decline in revenue...It's memorialised in my mind. I thought 'holy cow, what the heck's happened'. From that point on it got really ugly."
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