Based upon the stock share price of MGM, (under $10), the Las Vegas strip will be a ghost town.

It doesn’t work like that. Visitor volume is down about 1.5% from last year. They don’t let the rooms sit empty, they just keep dropping the prices until they fill them. A lot of the convention business has disappeared. People come, they just gamble less, eat less, and window shop more.
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The biggest problem is that Las Vegas was in the middle of the biggest building boom in it’s history and was planning for massive expansion. All the new casinos are just starting to open up this year. There is already over 20,000 new, very expensive rooms scheduled to open in the next year and a half. This was after a few years of very small increases in the number of rooms in the valley.
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Historically, from 1989 (when Mirage opened) to 9/11 (end of 2001) Vegas opened an average of 5000 rooms per year for the 13 years. Peak was 13,000 rooms in one year (in 1994 when three or four major casinos opened at once). Since 9/11 growth has been very modest. This year The Plaza, Palms Place and , the Trump hotel, along with a bunch of new hotel blocks has opened. In the next year and a half The Wynn Encore, Alliante Station, the Resort, the Hard Rock expansion, the Golden Nuggest expansion, the "City Center" ARIA complex, the Fountainbleau, and Cosmopolitan, the Vdara Hotel, the Mandarin Oriental , the Harmon Hotel, are all in the process of construction and can’t be stopped. The prospect of all this capacity at once in the middle of a recession is what is driving stocks into the gutter. One $5 billion complex had four building up to the eighth floor and stopped construction and sealed the steel up to resume in the unknown future. That’s never happened before.
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Total rooms in Las Vegas
130,482 Dec 31 2003
132,947 Dec 31 2007
137,690 Aug 31 2008
155,562 just finishing construction underway in next year and a half. That is not counting the Echelon project where they stopped construction halfway through.