The Curran Comment

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Anti-Stimulus

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Part of the process of going through a recession is rationalization. Old businesses fail and new businesses emerge. As Obama steps up his attacks on the excesses of the past decade, we will see more and more businesses complain about  “Anti-Stimulus”.

Las Vegas has recently become target number one, as many businesses cancel retreats or conferences in the city of sin. It has become unfashionable or unwise for corporations to plan trips to the city, as the increased scrutiny on spending leads to less business travel. The travel industry is really going to take it on the chin with many layoffs and reduced wages. These casino heads do have a point that recent Obama speak has been populist and damaging to their industries.

It is unfortunate that many companies are simply wasting money by canceling and rebooking trips closer to home, as the cancellation charges can be hefty (Goldman Sachs reportedly canceled a conference in Las Vegas by paying a 600,000 USD cancellation fee and then having the same conference closer to home just to avoid the evening news).

Two thoughts: will the waitress who survives on tip revenue find these developments helpful in taking care of her family, or is Las Vegas just an exaggerated example of what is wrong with America?

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Written by currancomment

February 17, 2009 at 11:26 pm

Posted in Uncategorized

Tagged with , ,

One Response

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  1. If people are abandoning their partying and discretionary spending while at home in the US, consider the how much global playgrounds like Dubai and Macau must be hurting. Thousands of cars being abandoned at Dubai’s airports just so expats can avoid ‘debtor’s prison’ is a frightening glimpse into the reality of how the region treats expats when times are good. Once things sour the Western world will go back to regarding its governance and civil rights as barbaric. What then? I’ll answer my own question and say that’s when you should start buying Dubai XYZ again. At least Vegas has theoretical benefit of Federal tax support should it ever come to that. How generous do you think Emirati money will be to an entire region founded on excess?

    Luke

    February 18, 2009 at 9:21 pm


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