Things You See in Las Vegas

From the looks of the building cranes and housing billboards, there doesn't seem to be much of a slowdown in the Las Vegas housing market, but what do we know. Some of the billboards say, "From the $100,000s". We don't know what kind of new construction you could get for under $200,000 in Las Vegas, and, come to think of it, maybe it's best that it remain that way.

It's funny to look at some of the newer housing areas. With desert as far as the eye can see immediately behind a housing development, you have 2000+ square foot, two-story homes on tiny lots where it looks like neighbors could reach out their windows to shake hands. The American dream of your own single family home - wide open desert expanse right next to a jam packed housing area - just like Southern California, but more desert.

What's also funny is to compare and contrast the Donald and Ivana Trump condo sales offices, which are a couple blocks away from each other on the Strip. Ivana's got a huge sign on a tired street corner while Donald has a more subdued office in a primo location across the street from the new Wynn hotel. Our money is on Donald. That is of course, if either of these actually get built - 2008 is a long ways away.

It seems to be mostly Americans walking the streets and depositing money at the casinos - an occasional family from Europe or a couple from Asia. We wonder how the Las Vegas hotel and casino business will fare as American's feel less wealthy in the coming years - this could be an extreme example of how the wealth effect could work in reverse. Will the Chinese and other tourists from Asia pick up the slack? Probably not nearly enough to fill all those hotel rooms ... and condos.

If you want to understand more about recent Retail Trade job creation in America, go to the Las Vegas Outlet Center. It seems that clothing, clothing accessory, and footwear retailers made up about 80% of the tenants and about 60% of them were hiring. Of course, most everything for sale is made in China, Pakistan, India, Nepal, or some other place half way around the world, but the good news is there are plenty of jobs available for American sales people. (The second chart from this post last week ­- Changes to U.S. Retail Trade Payrolls - now makes a lot more sense. We'd been to a Home Depot recently, but not to an outlet mall.)

There are more and more Spanish language TV and radio stations in the area. And, there are more and more advertisements for home equity loans, debt counseling, and the recent up-and-comer - bankruptcy specialists who will help you beat the October 17th deadline when the new bankruptcy bill takes effect.

Leaving Las Vegas

Q. What did the Escalade driver say to the Expedition driver as they filled up their gas tanks in Primm, Nevada?
A. Dude, gas is $3 a gallon.

In Baker, California, which is about 100 miles from anywhere, apparently there was a run on the number "3". That is, the number "3" that gas stations use to post their prices out by the curb. It was odd to see gas station signs that said $3.13, $3.23, and $3.33 for self-service gas - a clean sweep. One of the gas stations had to write in the number "3" in a couple different places using a Magic Marker - apparently they were unprepared for the most recent increase from their supplier.

Finally, a billboard in Barstow, California puts many of the previous observations into the proper context. A man in a nice suit is shown from just below his knees to his shoulders. Both pants pockets are pulled completely out, open palms facing those who drive by. Above where it shows the name and number of a local lender, in bold letters it says, "Time to Refinance?"