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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (6640)	4/28/2008 11:20:01 AM
From: DebtBomb	Read Replies (2) \| Respond to of 71463

There's some increase in gambling as the Fed floods the system with cheap dollars, and more "get rich quick scams" pop up, as folks look for a way out. How does a person buy Chinese Yuan? Why can't we buy it like yen or francs through an etf?

To: Tommaso who wrote (6640)	4/28/2008 11:36:59 AM
From: Paul Kern	Respond to of 71463

My favorite "other thing" is Gamehost, which owns the only legal casino in Fort McMurray among other things. Pays good money and just listed on the Toronto Stcok Exchange after a 3-1 split. Gambling Industry Isn't So Recession-Proof: Joe Saumarez-Smith Commentary by Joe Saumarez-Smith April 25 (Bloomberg) -- When the economy hits the skids, the gambling industry is often considered to be immune, on the theory that people will aim for a big win to get out of financial trouble. Fund manager Dan Ahrens argued in his 2004 book, ``Investing in Vice: The Recession-Proof Portfolio of Booze, Bets, Bombs & Butts,'' that these companies were ``the ultimate defense.'' The Vice Fund portfolio, run by Ahrens until 2005, was heavy on stocks such as Harrah's Entertainment Inc. and International Game Technology. But recent figures from the world's gambling centers suggest that this downturn might be a bit different. MGM Mirage, the largest casino operator on the Vegas Strip, said April 14 it will fire 400 middle managers as part of a plan to save $200 million a year. The company said there were signs of slowdown at its properties, which include the Bellagio and Mandalay Bay. Nevada Gaming Board figures show gambling revenue across the state fell 3.9 percent in February from a year earlier. On the east coast, casino revenue in Atlantic City dropped 9.9 percent year-on-year for March, with the New Jersey Casino Control Commission reporting a 6.4 decline in revenue during the first three months of the year. Every casino in Atlantic City reported a drop in revenues in March, although the recession cannot be solely blamed for the decline. New slot-machine parlors have opened in neighboring Pennsylvania and gamblers have stayed away from the casinos following a partial smoking ban introduced in 2007. Casino Shares Drop Shares of gambling companies are way down from their year highs, as analysts and investors have woken up to an apparent oversupply in the U.S. casino industry. Many hit 12-month lows this week. MGM Mirage closed yesterday at $51.08, down from a 12- month high of $100.50; Las Vegas Sands Corp. is at $70.44, down from $148.76; Boyd Gaming Corp. is at $18.02, down from $54.22 and Isle of Capri Casinos Inc. is at $6.77, down from $26.70. In the U.K., gaming companies such as Ladbrokes Plc and William Hill Plc have also fallen. Last week Goldman Sachs Group Inc. issued a report titled, ``Why This Downturn Could Be Different,'' saying that the current slump for casinos could be worse than in previous economic slowdowns. With 12 states now offering casino gambling, up from just two in 1980, casinos have to fight hard for new business. This weekend, the Atlantic City Hilton Casino Resort will try to attract gamblers to ``sell your gold for cash'' in the ballroom, the first time pawn broking has come off the Boardwalk and into the casino premises. ``I don't liken this to a pawn shop, but a convenience,'' Phil Juliano, the Hilton's senior vice president of marketing, says of the unusual promotion. Mainstream So why have gamblers broken a habit of a lifetime in this downturn? Anecdotal suggestions from pit bosses and casino employees suggest that many regular players have reached their credit limits. Additionally, different types of people now gamble, and their wagering behavior is swayed more by the economy. Gambling has gone mainstream, says one Vegas pit boss who asked not to be identified because he isn't authorized to speak for his company. Twenty years ago, casinos attracted mainly hard- core gamblers, whereas now people come to Las Vegas to shop, eat at restaurants and do a bit of gambling, he said. Only sports betting seems to have been largely untouched by the economic woes. Dave Staley, a spokesman for online betting site sportsbook.com, says, ``Our numbers just keep growing and growing. Maybe it's just that people find it easier to gamble online than get in their cars and drive a long way while burning expensive gas.'' Worldwide it's not all bad news for gambling companies. In Macau gaming revenues were up 62 percent in the first quarter, meaning the territory's casinos won more business than the entire Las Vegas Strip and Atlantic City combined. ``Don't tell Macau there's a global slowdown,'' Citigroup analyst Anil Daswani wrote in a research note last week. ``Macau remains a mecca for high rollers.'' (Joe Saumarez-Smith is chief executive officer of Sports Gaming, a U.K. management consulting firm to the gaming industry. He also owns European online bingo companies and odds comparison Web sites. The opinions expressed are his own.) To contact the writer of this column: Joe Saumarez-Smith at jssmith15@bloomberg.net Last Updated: April 25, 2008 00:01 EDT