That's Bloomberg, bearing the dire news that casino junk-bond debt is "generating the worst return for investors as companies from ... Harrah's Entertainment Inc. to Herbst Gaming Inc. risk bankruptcy under the weight of their debt." With a return of 10%, casino junk bonds "are the biggest losers this year."

Who knew? "It was viewed very much as a safe haven," says one portfolio manager, referring to an industry long perceived as recession-proof -- a bubble that has burst this year. Aforesaid manager has seen his company take a bath on Donald Trump's casino debt, and is foreswearing taking on any Harrah's or Station Casinos bonds, given the size of their respective debt loads.

Other clunkers are identified as Columbia Sussex (whose debtholders want CEO William J. Yung III's head on a platter), Greektown Casino (scrambling to keep its license) and Herbst Gaming, which has received a "going concern" notice from Deloitte & Touche, and whose debt is plunging in value. 

In the cases of Harrah's and Station, one of the rationales for privatization was that it would enable the companies to pursue new development at their own discretion, without having to answer to Wall Street. Instead, each is handcuffed. Given the evidence of market glut on Las Vegas' locals scene, maybe it's best for Station that there will be a four-year lull after Aliante Station opens. But it's a shame that the company's push into the Reno market -- one that could use new product of Station-level quality -- is now on indefinite hold.

$1 billion for the Trop? Although that nice, round number was floa