Las Vegas has had its share of bad press lately. As the economy tanks, developers in Vegas continue to build and build and build. The press is reporting that casino business is down. Last time I was there I saw a massive construction site for City Center/Cosmopolitan Resort & Casino. It turns out that Deutsche Bank is foreclosing on the developer of the Cosmopolitan Casino & Resort because the company defaulted on its loan.

The Cosmopolitan’s developer, 3700 Associates, said in January that it had defaulted on a construction loan, but was seeking refinancing. Those efforts by the firm and its CEO, Ian Bruce Eichner, apparently failed as a result of the current environment of tight credit and tougher loan underwriting standards.

He said he thinks Las Vegas will continue to grow, despite the weakening economy. “In fact, there are numerous new projects that are just over the horizon.”

Right. Much of Vegas, as it stands, will be unsustainable without an easy-credit economy supplying the excess cash to its tourists for its boom times.