One would think that, if profit and loss were the driving factors, if things boiled down to capitalism in its pure form, and if the games were such a money loser, then, eventually, no cities would bid for them. The market forces would dictate it.
So there must either be some unseen financial gain - dollars pumped into the local economy by tourists at hotels, restaurants, shops, etc. These companies will then employ more people, purchase more goods, and pay more taxes as a result of greater profits. Or perhaps there are the intangibles of having been an Olympic city and the cache that it brings.
Just thinking out loud.
I enjoy the Olympics. Can't wait for the track and field to start.
