The stock and bond industry in NYC

Here's The Real Way New York Is Like Detroit

Ordinarily, I think these kinds of comparisons are off-base. But New York is, in one very important way, like Detroit: Its economy is dominated by one industry, and it doesn't have a good repositioning plan in place for when that industry falters. New York has the highest taxes in the U.S., providing very generous pension and health care benefits to public workers that now consume 1/5 of the city's budget, with a vast social services apparatus that in most other places would be left to the state government to manage. And that all works because Wall Street is a money machine. Bankers make way more money here than they could make if they moved their businesses elsewhere, and they love living here, so they will put up with high taxes, high rents, and all the other aspects of New York that make life here expensive. And they really do pay the city's bills. In 2008, 44% of wages earned in New York City went to people working in the finance and insurance sector; even in the depth of the financial crisis, that share only declined to 37%. Those figures actually understate finance's importance to the city's tax base — after all, who's hiring high-paid lawyers and going out to fancy restaurants and buying apartments in luxury towers that construction workers build? Bankers. Read more: http://www.businessinsider.com/heres-the-real-way-new-york-is-like-detroit-2013-8#ixzz2d8lZmsB9

Josh Barro
Now, how much of those business profits are driven by politicians in DC? Well, we roll four trillion each year, likely with whosale rates the bankers in NYC can move that for 100 billion. Then they get the private sector stocks, with high margins for rolling that. My numbers way conservative. What happens when DC stops borrowing? Well the infantile bankers sent Greenspan to DC when Clinton ran a srplus. They damn near cried and boo hood for months. When it is sequester time, pay less attention to bankers and fund managers who live and work in NYC, the bias is unavoidable for them. But here is the bigger point. California is your Obamacare state, or really, the LA basin. And Florida is your retirement state, Texas sells you oil.

All of this federally administered specialization in government programs, among three states and Texas. Who manages? We all report to 60 small state Senators from middle America. Why not? Whats wrong with specialization on a grand scale?

Well, for one, the airplane ticket whenever a small state citizen wants to partake in a federal program. Plus, by jingo, they all get taxed, but they all are too small to scale up, bummer. So, says some small state senator, you don't need us, leave us out completely and let four or five governors do quadralateral swaps. In other words, a large tax exemption for small states, to cover extra losses in the federal business.