Mandatory Listening
Put your handguns down and click this link and listen to the Steve Wynn conference call rant, starting at exactly 45:00.
I will try to get my own audio shortly.
UPDATE: We uploaded it to youtube.
Direct youtube link for iPhone players.
My take: Steve Wynn is a master orator. His command of the english language is unparalleled and his cadence is perfect. This administration has infected the psyche of America to hate the rich. There is divisiveness like I’ve never seen before, coming from the left and the right. Instead of uniting this country in a time of hardship, Obama has opted to drive the wedge deeper. This is not an endorsement of the republicans, as I hate them too. I am simply giving you my observation and insight, as to why this economy is doing so poorly at a time when businesses are so rich.
Personally, I’ve been struggling with making a major business move for over a year, mainly due to complacency. Should I choose to make this move, it will employ people at a premium wage. But I’ve opted to wait until the business environment improves– because I can. I’m not struggling, so why take the risk? The entrepreneurial spirit is being stifled under the loud fog horns of government, both Federal and local. On a separate note, I’ve been meaning to move into a larger house for over 2 years, yet have opted to “stick it out” due to an “assholish housing market” (the words of my realtor). I have more than enough savings to buy my target home 100% cash. But why buy now when that shit is going the fuck lower?
There is no sense of urgency, which is the primary reason why we are stuck in the mud, spinning our wheels.
104 Responses to Mandatory Listening
That man can talk, on the spot too. Inspiring.
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word
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Exactly.
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The Fly,
The state of the housing market aside, would you buy with cash instead of taking out mortgage? The dilemma is that even though the mortgage rates are low, the cash sitting in the bank is doing nothing with the sub-zero interest rate; and the stock market is iffy to say the least.
My wife wants to buy all cash. But I think it’s a waste of capital, especially since there is a strong chance the new home value will decrease. I can take that money and easily make 10% in the market. So it makes little sense to pay cash.
On the other hand, by paying cash, I instantly eliminate owing anyone anything, which is somewhat of a liberating idea. I might meet halfway and put 50% down.
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Thanks! I value your opinions.
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The fact of the matter is housing has always been a brutal investment unless you are fortunate enough to catch a bubble. The only reason people are under the assumption that it has been a great investment historically has been the fact its highly leveraged. A comparable leverage ratio applied to an index fund shows what a poor investment housing is. Housing by definition can only go up by slightly over the rate of inflation long term. Most people do not factor in carry cost, property taxes, upkeep, furnishing and transaction costs. Buy the smallest house you can live in and invest the rest…. not that I can say I am a fan of Buffet but he hit the nail on the head with housing.
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record low mortgage rates and mrs. fly wants to buy with cash? me thinks the spinning classes are overheating her brain.
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Been reading this blog a long time. This is the best thing you’ve ever posted.
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I agree with Wynne for the most part. But he is wrong about Federal deficits. They are the only thing keeping the economy sputtering along. What is lowering peoples standard of living is the absurd amount of private debt and subsequent deleveraging, not Federal deficits.
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I believe Wynn is talking to the mentality of taking money from the people in order to spend and bribe more.
The problem with govt, they are taxing us but not spending the money efficiently.
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This is very true. Government is a horrible allocator of resources.
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Which is exactly why resources should be kept in the hands of the private sector.
What I find truly incomprehensible is that a fair percentage of the population actually believes that the creation of another government job contributes to the overall economy.
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That makes sense. In addition it is the free trade policies with countries that are on completely different economic worlds. How can people ever begin to compete at the current standards of living and wage levels? They cannot. These free trade policies have started a gigantic re-balancing of wealth.
The deficits are not an issue because the US is the reserve currency. The only monetary concern is inflation and hyperinflation.
To get to hyperinflation the US would need to face war, rampant corruption in the political and economic system or regime change. It could be argued that these are the real concerns. It is possible that OWS’s focus on wage discrepancies is due to political corruption where corporations have effectively taken over.
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I’m tired of hearing that companies are waiting for “certainty” until they make decisions and move forward. Supposedly the government needs to give businesses certainty. Give me a break. Move forward, take a risk. The government is not going to do anything to make things less uncertain. Give me a frickin break.
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The point is, the government is literally in the way. The whole structure of the economy, super low rates, constrained lending facilities etc, are the reason why we are going nowhere.
When you have a big problem, instead of casting aspersions and belittling the business people, acknowledge their legitimate claims. That is step 1. If Obama cannot take that step, he will not fix the problem.
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sigh !!!
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… with “Boner”, Cantor, et al … determined to defeat Obama … at the Country’s peril … it is ALL a ridiculous …
Theatre Of The Absurd !!!
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Back in your cubicle!
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40,000 jobs created in LV and he’s afraid to make the move. Wynn has never been fearful to make any decision when it comes to the LV Strip. If he can’t make long term projections on a deal where he has a distinct advantage, then how can any entrepreneurial wheels get going again…
Thanks for posting this piece of gold.
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He’s wrong about deficits, why businesses aren’t expanding and why his own employees standard of living is stagnant or declining. Complete and utter horseshit really, just a smokescreen to explain a blah performance. Also thought the analyst that asked about OWS on the call was a ball-sucking, star-struck dipshit.
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Y. OWS Q was lame, but did bring out Wynn’s ire.
No honest economist or business person would ever admit the underlying issue: INFLATION.
Inflation is good, “it… … …” makes ears numb, eyes glazed and though fogged. Inflation kills “little man” and causes more family strife, leading to lower birthing rates by “traditional” (you know, the tax paying type) Americans. I THINK THAT’S PC ENOUGH W/MAKING THE POINT.
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off topic – brazil cut rates and China PBOC Cuts 3-yr Bill Yield for 1st Time in 15 Months.
what does this mean? trying to pump liquidity in as shit starts to hit the fan?
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It means there’s an enormous appetite for minimal returns, for places to park money as deflation eats away and erodes asset prices.
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got it thx
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I think there was an error in the editor’s room.
“The Audacity of Incompetence.” No. That was one of Barry’s books.
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One day, if this country survives another few decades, the books, if they ever return to educational, and not institutional, will read about how America voted in an incompetent saboteur who aided and abetted foreign country’s in the treasonous overthrow of America.
I’d ask where AG Holder is to enforce the Constitution against said High Crimes and Misdemeanors, but he’s been busy selling automatics to Mexican gang enemies and enabling black panther intimidation at the voting precincts.
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Back to punching bag.
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Excellent post. Steve is the man.
If we had the 9-9-9 plan, he may build enough to employ 200k jobs.
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vegas is toast. it was a fad. sure maybe another few baccarat tables. the jobs wont be here unless opium dens and whores are made legal in the great city of las vegas.
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Very clever racist comment
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not at all. the fly needs to visit las vegas. its not happening. nice idea but gambling in america is a fad. i got nothing against the true players.
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The guy who asked the question sounded OVER 47.5 years old.
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In all seriousness, Wynn is a master at his business. It’s also nice to know that he has given two ‘cost of living’ increases while most companies have done nothing.
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As a currency guy, I have to say I despise when people equate federal govt. accounting to that of business accounting. Not the same thing.
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Steve Wynn is a Botox injected “snake oil salesman” !!!
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PERIOD !!!
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… the dewd is “creepy” … to say tha least !
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You know who else is creepy?
You are.
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Easy there Alf. You just out of gaol. It makes no sense to go out and take such risks without putting in some roadwork first.
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Steve Wynn makes my skin crawl !
The dewd is creepy … PERIOD !!!
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Have you seen your own avatar?
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YES !
OBVIOUSLY !!!
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Prolly the best (most recognizable) “avatar” on this site ! imo
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… aside from your’s … of course !!!
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But that’s my real picture, just prior to doing brain surgery.
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YIKES !!!
Are you “licensed in the State of New York” ?
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You NEVER cease to amaze me !!!
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gonna go with the i dont know but i do answer and think on it.
israeli gents going broke sir
pics from the same gene pool … relative?
http://news.nationalgeographic.com/news/2011/10/pictures/111013-shark-albino-one-eyed-fetus/
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I ran into him at one of his shops at the Wynn a year ago. He had a blond bimbo on his arm, a 189 on my scale (would you or wouldn’t you (1-0), face (0-9), body (0-9)).
That guy can talk on the spot, that’s for sure.
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Focus on the message, not the messenger.
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Thank you. I feel much better about my situation now.
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Fly, i know i’m making assumptinos here but:
why do u care to wait out a price drop in the house ur looking @ buying? obv I dont know how old you are, but i know you’ve spoken here a lot in the past about moving your family to a better spot for your kids, so i have to think you’re willing to be there a while. who cares if it drops 20% if you are going to live there for the next 15 years+. if it suits you, it suits you, and 15-20 yrs down the road you won’t care about the 300k you coulda saved.. you’ll be happy in your new home for the last 15 years. Lol
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Why Chivo?
Because as much Rick Ross shit I talk here, in real life, I am a very prudent investor. I’ve suspected for awhile that we can literally fall off the cliff. Knowing this, I’ve been reluctant to allocate serious capital at a time when I should be cautious.
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the eastcoast is a shithole. come out west. although the 3 hour time change is a drag with the market. the kids will love it. sunshine year round. no corners unless your in an obvious ghetto. we dont have ghettos across the street here. you gotta travel miles. no snow either.
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I kinda like trading regular market hours on west coast time better,have a place there where I stay part of the year and since I rarely sleep anyway it’s sort of nice for the market to open at 6:30am and close at 1:00pm. Done with work by lunch and have most the day to do other stuff.
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Why not wait a couple of years to save that 20%?
What’s the rush?
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We have cynical leadership interested only in re-election.
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Obama is weak. And when the leader is weak the country is weak. In the 70′s we had Carter and by the time he left office this country had a big hangover. We were no longer sure of ourselves, every tin pot dictator thumbed his nose at us and we felt like there was nothing to be proud of anymore. As a side effect this caused a deteriorating sense of well being in the business community stalling job growth and killing the any incentive to take chances. And let’s not mention runaway inflation. So it took two years after Carter left to right the ship and move us back into the win column. Only this time there is no Reagan… http://www.youtube.com/watch?v=zh0jprojKF4&feature=related
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“… only this time there is no Reagan …”
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YES THERE IS !!!
His name is Barack Obama !!!
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Ronald Reagan has/had MORE in common with Obama … than any of this crop of “Republican Reagan Wannabes” !!!
Go back and listen to Reagan !!!
Tell me …honestly … do you hear Obama ?
Or …
Do you hear the current Repub “talking points” ???
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Reagan would be ashamed of this Republican Party !!!
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“I’m sorry Rick Perry !
Ronald Reagan was a friend of mine !
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You SIR … ARE NO RONALD REAGAN !!!”
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alf please by almighty god. with lightning and shit. bells and whistles and candybars and chutes and ladders GO FUCK YOURSELF.
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Your 100% right Alf . Ronald Reagan and Obama were both great actor’s.
Reagan had appeared in 53 Hollywood movies and even though Obama is yet to star in his own motion picture, he has appeared in over 5,000 speeches and has given many Academy winning performances and has unfairly not received any awards yet for his amazing performance on the stage. If you ask me he is one the greatest actor ever to grace the stage.
no no no in and out.they gave him a prize he had NO FUCKING BUSINESS GETTING. NOBEL PEACE PRIZE MY FUCKING ASS !!!!!!!!!!!!!!!!!!!!
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Your right he did get a award he no business whatsoever getting , I was truly amazed he was even nominated and then when he got it I was unable to make any logical sense out of it.
He is though one of the best actors/performers in the world and deserves some recognition for all his amazing performances.
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“Every tin pot dictator thumbed his nose at us.” Well, I guess you haven’t been paying attention: Here’s the list of Obama kills/captured:
Osama bin Laden
Zarquawi (spelling?)
a number of other underlings/Al Queda leaders
Quaddafi
Mubarak
George W. Bush
You’re right, though, there are still a few on the list:
Blankfein
Dimon
Mack
Frankly, blaming Obama for the business climate is to refuse to recognize the math and true economics of what has been happening.
The other thing that’s laughable is the idea that Obama has done anything other than feed the fuckin’ bankers and the business leaders in this country, lazy good-for-nothing welfare queens that they are….
Sorry, Fly, but I don’t agree with you. The problem is aggregate demand. 5.2 fewer jobs in the country than in 2008. Pay is dropping. These are not the creations of a “business” climate and listening to a Vegas businessman is a losing proposition.
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Nice catch, Fly. Thx. I’ve never followed Wynn much and didn’t realize he was that articulate or had such good insight.
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Wow. He’s what I sound like in my head right before I speak. Unfortunately it comes out more like Peter Griffin.
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Haha, same here my man. Not everyone is blessed with the gift of speach.
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He certainly hit the nail on the head and summed it up quite nicely. Why isn’t Wynn the head of the admin’s job council? Such a joke that its Immelt- GE pays no taxes and sends jobs overseas.
It is all very depressing. This country was a real SUPER power but not anymore.
..i. a “Casino Boss” … Head of the “Job Council” ???
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You’re kidding … right ???
LOL
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…not sure how that “i” snuck in there … sorry !
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Here’s an idea, build your own home to specs that would make wife/kids and you happy. Materials, construction and lots are at a buyers premium. Your Insurance agent could quote you the ‘going’ rate per square foot as a starter. I know a few folks that have done this (in these times) as the Contractors are ready to deal and have time to get the job done on schedule
A couple phone calls: architect, Realtor etc
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Dear misspelled sperm makers,
I’m not sure what the context of your post is, but its exactly right.
I’d guess I have one of the nicest houses in one of my neighborhoods (I have two houses), but here’s the kicker: it was built for less than the price of the vast majority of houses here were asking as a sale price. And its nicer than ALL, and by quite a margin, of the houses that were for sale when I moved in.
Why? How? New neighborhood so no old houses +
1. cheap building materials
2. cheaper / lower margin bids from contractors
3. contractors / labor are actually almost grateful for the work
4. land prices dropped
Those 4 facotrs and the fact the building is pretty cheap now add to the problems of existing homeowners, but are a bit of a treat for a new home buyer/builder
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Sounds great, but the key is “new neighborhood” ………… There ain’t any around here.
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their standard of living is NOT dropping because of deficits
it is dropping because of government spending to some extent
i realize this takes thought to process, which is difficult.
greece is not in anarchy because of deficits, its in anarchy because it can’t issue its own currency. plain, simple, fact.
steve’s heart is in the right place, and he is DEAD RIGHT about small business being the one and only engine of growth…
but he’s wrong about deficits. if he replaced deficits with “silly government spending when they could just cut our taxes to get the same deficit”, he’d be dead on!
everything but the deficits (which is simple misunderstanding of how us economics works).
everything else is perfect!
we can’t bankrupt the US, thats the ultimate amazing joke that nobody really realizes…
except the deficit panic (which is generic and completely misguided), that was ONE HELL OF A GREAT SPEECH!
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“”their standard of living is NOT dropping because of deficits
it is dropping because of government spending to some extent
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Deficit is Gov’t spending in excess of tax revenues. So the deficit is caused from Gov’t spending out of control. Which was Winn’s main pointy.
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Regardless of the finality of OWS, the one positive to note is that we are legitimately putting the issues on the table and talking about them, even if most conversations result in vulgarities.
I can’t turn on the radio without hearing about it, and Master Fly can’t stop posting about it
Good thing winter is upon us, nobody wants to stand out in the cold wearing nothing but hippie clothes. How are they going to look cool in snowsuits?
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Wynn is oily, and you don’t want to be standing behind him while holding a Picasso.
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there are no honorable people working or employing on the las vegas strip
but, aside from misunderstanding economic reality, that was one hell of a speech.
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Go become Colonialists!
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This guy is sooooo dumb. He says people are linking government debt spending with their own problems? That makes no sense. He says people in Greece are revolting against parliament because they are controlled by the unions? Wake up, I’m sure something like 80% of them ARE the union. This guy is twisting everything that is happening to fit his own world view. Retard.
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He didn’t say they are linking it, he said gov’t is causing it. But people don’t seem to understand.
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Fly, are you going to move closer to the city or further out ?
Do the kids still need a yard or is a big condo in the cards ?
No, I’m not a realtor, but here is a clip of a Forest Hills home with a lot of potential.
After Queens, there’s always Manhasset Hills in Nassau with Jello. (J Lo)
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I grew up in Forest Hills. Funny to think of the Fly there.
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I was born in Forest Hills.
I used to live on the border of Manhassat Hills… I find it VERY hard to believe J-Lo lives there unless there’s been some SIGNIFICANT improvement in the 20 plus years since I moved away.
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Bayside Queens has bigger yards and awesome brick houses, but not as close as Forest Hills.
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Why screw w. Queens when you could do Park Slope or Brooklyn Heights?
In the Slope, you’ve got that awesome park, too.
First placed I lived upon graduating college… back when it was affordable.
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Fly
Smart to hold off on housing. Zero rates are the exact WORST time to buy although your average realtor tells you this is the best time to buy.
That argument is utter horseshit. My dad(who was a credit trader) always told me:
“the only way housing goes up in value is when rates drop. When rates are at record lows there is only one way for them to go over the next 30 years…UP! As a result, rates become a headwind instead of the tailwind we have seen for the last three decades.”
Smart words from an old school Wall Streeter.
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Rates are approaching all time lows, you would think housing prices would be at all time highs. But that is not the case. Maybe your Dad was not correct about houses.
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The quote wasnt “housing goes up when rates drop”. It was “the only way housing goes up is”. (one could argue the validity of that)
The point is ZIRP didnt work and have no bullets left. Operation twist is desperation to lower the long end even FURTHER
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LOL are you serious?
My dad told me in 2006 to not touch the housing market because the lending was so bad from a credit perspective.
His friends were telling him Merril Lynch was broke back then because of the housing Ponzi scheme.
Obviously it’s not all about interest rates.
Why would housing be at all time highs with a 16% unemployment rate?
All you can do at this point is look at the risk of buying a house and with zero rates the risk is HIGH!
If rates go back to say 7% housing is going to freefall.
There are opportunites in certain areas like Florida but you have to pay cash.
Housing is only going to get worse before it gets better.
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He’s saying that prices will fall further as rates inevitably go up, and home prices go up as rates come down, except in this misery.
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Fly falls for schtick? Sigh. There’s no hope for us.
Poor Wynn has just been brutalized during the Obama administration. WYNN stock price is almost 4X what it was at inauguration and new tax cuts have been added on top of the Bush tax cuts.
He looooves Macau, though, probably because of the low gaming tax rates there: a puny 40.0% versus the massive 6.5% he has to pay in Vegas.
He also looooves government regulation when it prohibits certain business activities, or he did in 2006 when he was a strong supporter of legislation that made online gambling illegal in the U.S.
At least, until March 2011, when he decided that he loooooves government action to enable certain business activities (namely, online gambling) to take place in a regulated fashion. Wynn announced a “strategic relationship” with pokerstars.com, and stated: “After much study, we are convinced that the lack of regulation of internet gaming within the US must change.”.
At least until a month later, when Wynn dumped new BFF pokerstars.com like a second wife (who happened to be the same as his first wife) pokerstars.com was indicted for money laundering. Not to worry. There’s always more strategic-relationship fish in the sea.
Anyway, it is schtick by a long-time practicer of the art.
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Analysts tired of Steve Wynn’s rants
By Liz Benston
Monday, Nov. 15, 2010 | 2 a.m.
“In the otherwise dull world of quarterly conference calls, analysts can count on Steve Wynn — the eloquent, philosophical and opinionated CEO of Wynn Resorts — to go off script, much to their consternation.
Wynn again delivered on those expectations this month during the company’s conference call to discuss third-quarter earnings. In between Election Day discussions of financial results and growth plans in China, Wynn launched into a lengthy rant directed at the Obama administration and Congress for “anti-business” legislation.”
http://www.lasvegassun.com/news/2010/nov/15/analysts-tired-steve-wynns-rants/
Yep, 2010.
One year later, and the schticky web just caught another Fly.
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Why is it “schtick” if he’s employing his own little “bully pulpit?”
If he were eating at his own Buffet and complaining about “millionaires and billionaires” (that’s not even “schtick” it’s Grand Guignol) that pay your academic salary, you’d probably be lauding the old fox.
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i know ur a prudent investor 
trying to make the pt that when buying for familial purposes, for 15+ years, it’s not an investment
who cares if price drops? only those who want to sell higher
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now if dropping whatever the house costs is going to put you in a much worse financial position, then its a diff story. but i was under the assumption that it wouldnt
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Don’t know Steve but his comments were measured and hardly a rant. The comments could apply to almost any industry in any country in the Western world. Well meaning people are loading up business with so much regulation, read cost, that jobs are moved offshore. When the the investing environment gets too tough Capital picks up its bat and ball and goes play in a different park.
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Smokescreen for a shitastic quarter is more like it.
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Gordon Brown is right. Americans are a bunch of whiners that don’t understand their place as leaders of the free world. Whine, whine, whine.
Get fucking over it. Quit whining. You don’t know how good you have it.
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I wouldn’t characterize speaking out against the hard leftist slant gov’t policy has taken over the last five years (yes, since 2006) as “whining.”
Last I looked, this is still a constituional Republic, and we’re not beholden to Emperor Obama’s every whim, no matter what he may believe.
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@Jake, It was more of a general comment directed towards all of my fellow citizens born after WWII, not just this particular quarterly statement. Left, right, and center, we tend to whine more than do. I’m certain it’s a learned response. Children learn it from their parents. Maybe we can pick up the discussion after hours?
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my oldest brother who,at the age of 17,ran away from home when we lived in philly,i was 6 at the time. he ran away to vegas,became a dealer,worked at every joint there,after 40 fucking years,you know what they all end up with……………he’s 68 now. vegas used to be”the place”,it’s just not anymore,there’s a damn casino everywhere you go now,so wtf
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This is partisan BS. My question to Steve and all the CEO’s that talk like this is where has he been for the last 12 years.
Ken Langone goes into the same spiel when he’s on the News. Regulations are killing the business environment then goes off on Obama. His main gripe, Sabanes-Oxley. Blame Ken Lay and Jeff Skilling for that one.
It’s tough listening to how bad the 500th richest guy in the world has it! Not impressed. If McCain was president now we’d all be in the same shit storm and everyone here knows it.
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Wynn is a thug and a ganster, but he knows his business.
There isn’t a thing in this world that Obama can do that republicans won’t shit on. McCain, Grassley et al giving credit to france (fucking FANCE) for Libya. Please, cantor et al, go fuck yourselves.
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I appreciate, cause I found just what I used to be having a look for. You have ended my four day long hunt! God Bless you man. Have a great day. Bye
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