Last week, my parents' neighbors moved out of their $1.6 million McMansion. They sold it quickly at a loss, threw garbage bags of clothes in the back of the van, and headed back to Utah. The husband's hedge fund company went belly up.
Megan speculates what NYC will look like in the Post-Finance period. While I disagree, okay strongly disagree, with her point that lefties can't make smart fiscal policy, I do agree that the city is going to hurt without the easy money of Wall Street.
All that cash led to the gentrification of many neighborhoods that were trash-strewn, crime infested drug dens in the 1970s. (It also pushed out many low income individuals, who could no longer afford the rent in neighborhoods that they had lived in for years.) Bonus money created tax revenue, which went to schools, transportation, and police. In a post-finance city, we're going to see more crowded classrooms and more unemployed teachers. The brokers blew their money on clothes and restaurants. All those who worked in those establishments will be jobless, and creativity will be frustrated.
While I can join my friends who see this new era as a time of a modesty and greater equality, I am deeply worried about the spillover affect. We can't really rejoice in the just desserts of the Wall Street broker.
UPDATE: Confusing typo fixed.
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