Statewatch: Nevada: Wheel of Fortune

¶ … Statewatch: Nevada: Wheel of Fortune

According to this article in the Economist's February 5th print edition, fewer American states are suffering more than Nevada, and that is largely due to the fact that Nevada was archetypal in the causes of the current financial crisis (Economist, 2009). Heavy development of both casinos and large, expensive homes in the suburban areas of Las Vegas was fueled in the past few years by cheap credit and the misguided belief that the good times could never end -- a belief that seems to accompany every economic bubble (Economist, 2009). Not surprisingly, reality disagreed with the belief of the developers and their investors; Clark County, which contains Las Vegas and 70% of Nevada's population, suffered one of the highest home foreclosure rates in the country during 2008. As part of the fallout, home prices in the area have fallen by over forty-one percent, and still show no signs of stabilizing anytime soon (Economist, 2009).

Many in the state claim that the figures make the situation look worse than it is, however. After all, Nevada -- especially Clark County -- experienced astronomical growth during the good years preceding the crisis, and the correction during the current lean years will necessarily be of the same proportions. Still, the article makes it clear that things will not be looking up for Nevada -- or the rest of the country of which Nevada is currently a good indicator -- for some time. Other issues complicating Nevada's recovery are detailed, such as a diversifying population with different needs and political demands, and the increasing face of lawlessness that the state and its central city promotes (such as in the "what happens in Vegas stays in Vegas" campaign) which dissuades some potential businesses from moving to the state. In general, however, this article focuses on the numbers of the situation, and does an excellent job of detailing the causes of the current financial meltdown.