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| Repossession capital of the US | Repossession capital of the US |
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| People queue for food donations in Las Vegas, which suffers from some of the highest rates of unemployment and foreclosures in the US | People queue for food donations in Las Vegas, which suffers from some of the highest rates of unemployment and foreclosures in the US |
| By Jon Bithrey Business reporter, BBC News, Las Vegas | By Jon Bithrey Business reporter, BBC News, Las Vegas |
| Rising majestically out of the desert sands of Nevada, the lights and lure of Las Vegas are legendary. | Rising majestically out of the desert sands of Nevada, the lights and lure of Las Vegas are legendary. |
| Its casino resorts attract tens of millions of visitors each year, eager to explore the self-styled Entertainment Capital of the World. | Its casino resorts attract tens of millions of visitors each year, eager to explore the self-styled Entertainment Capital of the World. |
| But the city has also become notorious in the US as one of the places hardest hit by the housing crisis and recession. | But the city has also become notorious in the US as one of the places hardest hit by the housing crisis and recession. |
| Job losses | Job losses |
| House prices here have fallen by almost a third in the last year alone. | House prices here have fallen by almost a third in the last year alone. |
| BBC AFTERSHOCK SEASON The BBC reports on the first anniversary of the credit crunch across radio, TV, and online. Read all about the G20 Summit and see how class="" href="/2/hi/in_depth/business/2009/g20/7897719.stm">each G20 country has fared See how the class="" href="/2/hi/business/8237553.stm">forecasters got it wrong during the crisisTomorrow: Exclusive BBC News report on how migration has been affected around the world class="" href="http://www.bbc.co.uk/worldservice/specialreports/aftershock.shtml">Listen to WS radio on the crisis class="" href="http://www.bbc.co.uk/programmes/p0043kcq">Listen to the radio documentary The Day Lehman Died | |
| The number of foreclosures, or repossessions, is the highest of any large city in the United States. | The number of foreclosures, or repossessions, is the highest of any large city in the United States. |
| And unemployment stands at 13.1%, well above the national average. | And unemployment stands at 13.1%, well above the national average. |
| Ed Leigh lost his job as a chef at one of Las Vegas' casino restaurants in January. | Ed Leigh lost his job as a chef at one of Las Vegas' casino restaurants in January. |
| His home was repossessed shortly afterwards, and he found himself homeless. | His home was repossessed shortly afterwards, and he found himself homeless. |
| "Until about a year ago the food industry was vibrant," he says. | "Until about a year ago the food industry was vibrant," he says. |
| "Now it's really lacking. The job market just crashed. There's just nothing out there." | "Now it's really lacking. The job market just crashed. There's just nothing out there." |
| He says that six years serving in the US army helped him get through his period on the streets. | He says that six years serving in the US army helped him get through his period on the streets. |
| "We were taught basic survival skills. Find a place to make a camp, find a few people to hang out with, somebody you can trust. [You] just try and protect yourself." | "We were taught basic survival skills. Find a place to make a camp, find a few people to hang out with, somebody you can trust. [You] just try and protect yourself." |
| Boom and bust | Boom and bust |
| He is now being supported by Catholic Charities of Southern Nevada, a major provider of services to the homeless and unemployed. | He is now being supported by Catholic Charities of Southern Nevada, a major provider of services to the homeless and unemployed. |
| Its director of residential services, Philip Hollon, says the impact of the recession in Las Vegas is amplified by its reliance on casinos and tourism. | Its director of residential services, Philip Hollon, says the impact of the recession in Las Vegas is amplified by its reliance on casinos and tourism. |
| "If you're a valet driver in Vegas and you park cars, now that people aren't actually visiting the city you don't have the cars to park." | "If you're a valet driver in Vegas and you park cars, now that people aren't actually visiting the city you don't have the cars to park." |
| He adds that many workers who until recently have had secure employment at the casinos don't have skills that are easy to take to other industries. | He adds that many workers who until recently have had secure employment at the casinos don't have skills that are easy to take to other industries. |
| For most of the past two decades, Las Vegas has been a boom town. | For most of the past two decades, Las Vegas has been a boom town. |
| The early 1990s saw a resurgence in investment in new casinos, and a renewed desire to build and market the city as much more than a glorified gambling den. | The early 1990s saw a resurgence in investment in new casinos, and a renewed desire to build and market the city as much more than a glorified gambling den. |
| Visitor numbers shot up and the resorts took on more workers. Many flocked from other states, driving a property boom on cheap, plentiful land. | Visitor numbers shot up and the resorts took on more workers. Many flocked from other states, driving a property boom on cheap, plentiful land. |
| That was amplified - as elsewhere - by the availability of cheap loans, including more sub-prime mortgages, extended to people with poor credit ratings. | That was amplified - as elsewhere - by the availability of cheap loans, including more sub-prime mortgages, extended to people with poor credit ratings. |
| Financial crisis | Financial crisis |
| So when prices eventually began to turn, Las Vegas suffered disproportionately. | So when prices eventually began to turn, Las Vegas suffered disproportionately. |
| People are coming in and selling everything. Their jewellery, tools, televisions, pretty much anything that pawn shops deal in [including guns] Glenn Parshall, Pawn shop manager | People are coming in and selling everything. Their jewellery, tools, televisions, pretty much anything that pawn shops deal in [including guns] Glenn Parshall, Pawn shop manager |
| Prices hit a record high in August 2006. Since then, they've fallen by 54.3%. | Prices hit a record high in August 2006. Since then, they've fallen by 54.3%. |
| And although house prices in many other parts of the United States have begun bottoming out, they are still falling relatively quickly in Vegas. | And although house prices in many other parts of the United States have begun bottoming out, they are still falling relatively quickly in Vegas. |
| The height of the financial crisis in September 2008 exacerbated the problems. | The height of the financial crisis in September 2008 exacerbated the problems. |
| All the big casino groups reported an immediate fall in visitors, with people apparently staying away because of fears about the future. | All the big casino groups reported an immediate fall in visitors, with people apparently staying away because of fears about the future. |
| Those who did still come didn't spend as much. | Those who did still come didn't spend as much. |
| "Right in the middle of September we started to experience a 20% decline in revenue," says Gary Loveman, chairman and chief executive of Harrah's, which owns Caesar's Palace and several other casinos on the world famous Strip. | "Right in the middle of September we started to experience a 20% decline in revenue," says Gary Loveman, chairman and chief executive of Harrah's, which owns Caesar's Palace and several other casinos on the world famous Strip. |
| "It's memorialised in my mind. I thought 'holy cow, what the heck's happened'. From that point on it got really ugly." | "It's memorialised in my mind. I thought 'holy cow, what the heck's happened'. From that point on it got really ugly." |
| Hope for the future | Hope for the future |
| Falling revenues - particularly from the previously lucrative convention business - have pushed casino groups into cutting thousands of jobs. | Falling revenues - particularly from the previously lucrative convention business - have pushed casino groups into cutting thousands of jobs. |
| They've also halted work on some new construction projects, depressing the local property market still further. | They've also halted work on some new construction projects, depressing the local property market still further. |
| However as you might expect in a gambling city, there is the occasional winner. | However as you might expect in a gambling city, there is the occasional winner. |
| "People are coming in and selling everything," says Glenn Parshall, manager of a pawn shop on the northern side of Vegas. | "People are coming in and selling everything," says Glenn Parshall, manager of a pawn shop on the northern side of Vegas. |
| "Their jewellery, tools, televisions, pretty much anything that pawn shops deal in." | "Their jewellery, tools, televisions, pretty much anything that pawn shops deal in." |
| When asked if business is good, he replies candidly. "Business is very good. We're getting a lot more people in. It's been continuous growth". | When asked if business is good, he replies candidly. "Business is very good. We're getting a lot more people in. It's been continuous growth". |
| Glenn isn't the only one with some optimism about the future. | Glenn isn't the only one with some optimism about the future. |
| Janice Birch lost her costume jewellery business when recession struck, as well as a property she bought as an investment. But she's not giving up because she thinks there's always someone worse off. | Janice Birch lost her costume jewellery business when recession struck, as well as a property she bought as an investment. But she's not giving up because she thinks there's always someone worse off. |
| "Just like my grandma used to tell me, you complain about having no shoes, there's somebody out there with no feet," she says. | "Just like my grandma used to tell me, you complain about having no shoes, there's somebody out there with no feet," she says. |
| "You don't complain, and you be prepared and ready when opportunity comes. | "You don't complain, and you be prepared and ready when opportunity comes. |
| "You have to make sure you have the right attitude. A positive attitude." | "You have to make sure you have the right attitude. A positive attitude." |
| You can hear more about the state of economy in Las Vegas on Business Daily on the BBC World Service on Monday 7 September. | You can hear more about the state of economy in Las Vegas on Business Daily on the BBC World Service on Monday 7 September. |