Monday, March 23, 2009

A Perfect Storm Batters New York’s Economy

A Perfect Storm
Batters New York’s Economy
Drop Dead is Just the Beginning

The melt down on Wall Street and the national rage against AIG bonuses will result in a major cut to the City’s budget and services for generations to come. Today’s Post editorial hinted that the congressional reaction to the AIG bonuses will badly hurt New York’s budget, but the public remains clueless about the devastating effects the nation's broken economy will have on the financial capital of the world.

The City’s incumbent elected officials remain silent about the greatest economic failure in the history of New York, so that they can be reelected. These are the same elected officials who convinced the City’s newspapers that only they had the experience to save jobs, businesses and the City’s tax base. The media is allowing them to use every tax trick they know of, from raising taxes, collecting fines from cell phone usage while driving and raiding budget reserves to get past this election-year budget without the public becoming aware of the fact that the level of services to which they are accustomed will soon end. What is especially hard to take is the fact that those challenging the incumbents have also remained silent about the coming budget cutbacks, even while allowing the incumbents to fund their member-items reelection government slush funds without a peep.

Just as dramatic would be its effect on city and state finances. A January report from state Comptroller Tom DiNapoli pegged the city's 2008 securities-industry bonus payouts at $18.4 billion down 44 percent from 2007's $32.9 billion. That drop, he found, drained fully $1 billion from state tax revenues plus another $275 million from the city's coffers. Imagine the impact if the bonus stream dries up completely. *** CITI, BANK OF AMERICA, JPMORGAN Chiefs Criticize Limits on Bonuses... *** Bloomberg Calls For Shift In Focus Over AIG Bonuses *** Why Obama's Leno Appearance Worked *** These CEO pay grades are an A+ *** AIG to bonus babies: 'Do the right thing' *** Moody's gives CEO $305K bonus *** Cuomo in October: Not against all AIG bonus pay *** Obama: Is 90% tax on exec bonuses illegal? *** Obama Reserved on Taxing Bonuses.

The City MERIT SYSTEM BOOSTS KIDS: MORE PASSING UNDER STRICTER PROMOTION RULE *** BULLY BUS DRIVER'S REHIRE 'DISGRACE' *** Sob story will get you in Section 331 TAKE ME OUT TO THE SAD GAME *** Schools not helping non-English speaking kids From Gotham Gazette *** "We didn't realize it was landmarked." From the NY Post:*** City Room: Preserving the City’s Historic Districts *** WTC Developer To Get Boost From Port Authority *** N.Y. Drivers’ Unexpected Allies: Transit Riders *** With Green Intentions, Entering the Realm of Co-op Board Politics *** Cardinal Egan Raises the Issue of Marriage in the Priesthood *** Maybe we should allow priests to marry, Egan sez *** MTA backtracks on huge Access-A-Ride hike *** Longtime councilman Jerry Crispino, 78, dies *** Tenants win free year of rent *** PTA may go online, but will they watch? *** Willets Point team spirit EDC open to bid from Islanders, sources say *** Contentious Final Hearing on Mayoral Control. *** TNPM Good question. Where have all the heroes gone? [Ephemeral New York] *** MTA Finance Committee Approves Fare Hike *** Monserrate Indicted On Assault Charges *** Schumer Comes Out In Support Of Gay Marriage *** Ask About Preserving New York’s Historic Districts

Road to City Hall PARTY LAND-USE DEMAND - asked public-advocate hopefuls vying for its endorsement to agree to consult with the party before deals are cut on land use ***
*** EYE ON CY'S 'PROBLEM' AIDE *** New York City’s Political Campaigning Industry Defies Downturn. *** Bloomberg Starts Campaign in Brooklyn *** Hank Morris And Ending Pay For Play In New York

Daily News Editorial: Stiffed by Smith & Skelos Good morning to our readers on city subways and buses. We regret to inform you that state Senate Majority Leader Malcolm Smith will today start the legal process for raising your fares and cutting your service.

Albany PA POLICE OVERTIME ZOOMS PAST $50M *** GOV PLOTS SECRET TAX HIKE ON RICH *** A Window for Justice The New York Legislature should pass a bill that would temporarily lift the statute of limitations for civil lawsuits involving the sexual abuse of children - NYT Ed *** Paterson tells Newsday he opposes sex abuse bill Gov. Paterson is siding with the Catholic church on an Assembly bill sponsored by Margaret Markey of Queens *** Being a governor has become America's toughest job.By Eliot Spitzer *** Gov. David Paterson's Senate minority leader tenure marked by chaos, dysfunction- Benjamin, DN *** Gov seeks fee hikes to stunt butt sales *** New York ought to be called the “Nanny State,” according to a new report *** Jim Odato asks a “honest services” scholar to assess the case against former Senate Majority Leader Joseph Bruno *** Paterson proposes a fee hike on stores that sell cigarettes *** A state program to use more renewable energy has mixed success, eight years after it started *** Senate Democrats move to restore the STAR rebate checks *** The Senate Democratic holdouts on the bridge tolls have some backers in their districts *** The MTA And the Past *** Siena Poll: From Bad To Worse For Paterson.*** TNPM Albany Leaders Struggle in Face of Budget Deadline *** State Senator Is Indicted in Stabbing *** Ferreras Defends Monserrate *** Here’s the text of the indictment of State Senator Hiram Monserrate. *** Has A.I.G. set the stage for Eliot Spitzer’s comeback? [Politico] *** Paterson: Won't stop the clock on drastic MTA plan *** Golden Tries Not To Gloat About Monserrate, Smith Remains Mum *** Paterson Breaks His Own Disapproval Record *** Paterson Breaks His Own Disapproval Record *** Senate Dems to caucus on Monserrate indictment

President Obama WHY BAM'S BANK FIX WON'T WORK *** Obama links budget to environment *** Geithner to unveil plan to combat banking crisis *** Questions surround health IT money *** CBS NEWS Kroft to Obama: 'Are you punch-drunk?'... Developing... *** Energy Secretary Serves Under a Microscope *** White House Courts Investors *** Meet Obama's billionaire cheerleader: Mayor touts econ plan *** Geithner unveils 500B plan to buy bad assets *** Geithner Banks On Private Cash *** WATCH: "60 Minutes" Asks Obama, "Are You Punch Drunk?" Read The Full Transcript *** My Plan for Bad Bank Assets - Timothy Geithner, Wall Street Journal *** The Geithner Paradox - David Paul Kuhn, RealClearPolitics*** Can American Capitalism Survive? - Robert Samuelson, Washington Post *** Why Obama Should Confront His Base - Kasey Pipes, Politico *** Obama Sold Out His Friend Chris Dodd - Steve Kornacki, New York Observer *** Geithner Aides Worked with AIG on Bonuses - Wall Street Journal *** Geithner As Obama's Rumsfeld - Marc Ambinder, The Atlantic *** TNPM
W.H. dials back support for bonus tax *** Econ board has yet to meet publicly *** Obama focuses on green jobs

Pay to Play THE INFLUENCE GAME: Mixing donations, earmarks *** Will Placating GOP Backfire on Bloomberg? *** Bargain for the beep? The probe of White House urban czar Adolfo Carrión has widened to explore whether he received a significant discount on the renovation of his home, the Daily News has learned *** Weprin gets big ally in Dinkins

Financial Policy Despair If Barack Obama’s bank rescue plan fails, it is unlikely that Congress will come up with more funds to do what should have been done in the first place, Krugerman, NYT

Wall Street Mess JPMORGAN OKS $119M FOR JET SET *** GALS' PAYCHEXXX - The shrinking job market is driving women into adult entertainment. Industry execs say they're getting a flood of applications from white-collar... *** Top SocGen Execs Give Back Options *** Geithner Rep Riding On Toxic-Asset Plan *** Mitsubishi UFJ to cut 1,000 jobs, shut 50 branches *** CITI, BANK OF AMERICA, JPMORGAN Chiefs Criticize Limits on Bonuses... *** Recession stalls skyscraper construction... *** Lehman Brothers Looking to Sell Art Holdings *** A Look at Other Recent AIG CEOs *** Trade Barriers Rise as the Recession’s Grip Tightens *** U.S. Rounding Up Investors to Buy Bad Assets *** U.S. Rounding Up Investors to Buy Bad Assets *** G.M. Bondholders Express Skepticism of Restructuring Plan *** Drilling Down: Recession Takes Toll on Direct Mail Ads *** Madison Avenue’s Chief Seer *** Auction of skeleton turns into dino-dud *** AIG's Rivals Blame Bailout For Tilting Insurance Game *** Big Hope for Small Cars Fades *** Savings Imbalance Clouds Recovery Forecasts *** Lessons From Emerging Markets. *** TNPM Tax code as power tool *** DAILY MAIL group to cut 1,000 jobs... *** CNNMoney: Stocks soar on bank plan