On the financial state of this country, a few observations. I believe it’s all getting very Chicken Little. As soon as two economists actually agree (or one Alan Greenspan says) that we’re in a recession, then the squawking of “the sky is falling, the sky is falling!” commences. Recessions and depressions are always diagnosed afterward, by their very definition, and I cannot emphasize this strongly enough, THEY ARE INEVITABLE. Everything cycles on this planet, and economics are no exception. And, when financial institutions are being bailed out by the Feds, we are in a depression. Ta-da!
Next, there is a very big difference from saying that corporations–let’s use casinos in Illinois as an example–are losing money, and the reality of what’s actually happening. The casino profits from this time last year, and in fact from last month, are down. The casinos here are screaming that it’s the Illinois non-smoking legislation that went into force January 1 that is diminishing their profits. In my less than humble opinion, while that may have an effect, it’s MUCH more likely that it’s the overall economy. When gas is a dollar a gallon higher than this time last year, people are less likely to throw money overboard on the gambling boats. However, I digress.
As I said profits are down. If I could scream this at the top of my lungs, I would… Year-over-year differences in profits do NOT mean the casino is losing money. They’re not. They just aren’t winning money off of people at the same or a higher rate than they were this time last year. Their profits are still obscene… they just aren’t as obscene as they want them to be…
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