The credit bubble bought hideous waste and mis-allocation of capital to non-productive, short-term speculation. This has left an aftermath of market saturation and excess capacity hangovers in real estate, retail, malls, restaurants, vacation services, golf courses…not to mention gambling facilities. This month NJ Governor Chris Christie noted disappointing gaming tax revenues as contributing to large revenue shortfalls in the state’s budget and opted to divert $1.56 billion in required state pension contributions to balance the budget. Taking from future coffers by spending in the near-term has been the dominant fiscal strategy all over the world the past 15 years. Now the future has arrived and it is full of capital and income holes pretty much everywhere.
Atlantic City’s 5-year revitalization plan in doubt as gaming revenues drop 45% since 2006. Here is a direct video link.