NYC faces a financial abyss
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From the NYT no less.
https://www.nytimes.com/2020/09/28/nyregion/nyc-budget-coronavirus.html
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Haven’t read the article yet but I for one have priced in a decent chance of a 70s-like situation returning.
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10% of workers have returned to offices.
I wouldn’t want Coumo’s job for anything and I would be praying for a vaccine ASAP. I
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Fiscal issues severe enough that the state had to bail the city out and took control of certain aspects of governing (to this day). And crime was bad.
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That was after the feds refused. Famous headline in the NYPost was “Ford to City: Drop Dead”
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The thing I remember about that is that Orange County went bankrupt around the same time. I was working (very briefly) at Salomon Bros at the WTC (pre-9/11) and was introduced to a guy who supposedly saved Orange County. He was apparently a local hero.
So the thing I remember is that there is money to be made in good times and bad.
I assume we will see more governments get in trouble as fallout from the covid mess.
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I wonder if it will be as bad as the article says. I did read an article about how after 9/11, there was concern that no one would ever want to work downtown again, especially in large office buildings. Someone write up there was for sure going to be a trend out of the downtown and they will soon die out. That obviously didn’t happen.
I realize what is happening is on a bigger scale but I also know that people and business has short memories. I read also an article, may be posted here, that working from home is not everything it is said to be.
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My intuition is that the city will recover as the population gets vaccinated and the budget recovery will follow. In the mean time a little pressure relief on the rising rents of the past decade or two isn't a bad thing.
Increasing urbanization is a multi-century secular trend and isn't likely to suddenly get reversed by a small (in the grand scheme of things) set back like this.
