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Economic Outlook: Cloudy with a slight chance of Casinos Consumer spending is down, 0.4 percent in December, as holiday shoppers performed under expectations, the worst showing of retail spending since 1992. Other dark clouds in the economic sector may cause consumers to close their wallets even more, as oil prices stay high and the real estate market hobbles along. Many big lending institutions have suffered serious losses as what many economists are calling the “mortgage market meltdown” continues. Citigroup, the US’s largest bank, recently showed a $10 Billion loss, the worst in over a century of business. That bank also announced it cut 4,200 jobs in the fourth quarter of '07, on top of the 17,000 lay-offs it had announced earlier in the year. Bank of America, too, while arguably not as hard hit by the Mortgage Meltdown, has announced it will cut 650 more jobs, the latest cuts are a part of an over-all restructuring campaign that includes eliminating 3,000 positions across the board. A slumping US economy may be even more reason Massachusetts Governor Duval Patrick has increased the strength of his pitch for Casinos in Massachusetts. The casino plan is projected to raise much needed revenue for the state. The Governor is urging supporters of casinos in the local communities to pressure lawmakers to pass the bill to expand legalized gaming. Massachusetts' House Speaker Salvatore DiMasi is opposed to Casinos in Massachusetts saying their institution would change the character of the state both culturally and intellectually. Editor's note: In light of the recent reports that Massachusetts revenue is weak and costs for much needed infrastructure repair and education are pressing, perhaps such a change of Massachusetts character would be a necessary evil. Maybe not so bad at all.
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