THE COMING REFORMS NYC survives by credit expansion paid for by DC debt expansio

THE COMING REFORMS

NYC survives by credit expansion paid for by DC debt expansion and liquidity provision. in NYC 11 of the top 25 companies would vaporize with finance reform. SF would vaporize with labor reform. LA with immigration reform. DC with decentralization. (an Insight on US fragility)

This merely states that the tax revenues of NYC are disproportionately dependent on the financial sector which is disproportionately dependent on DC, and that in the next severe correction, we will likely see financial reformation and a substantive impact on NYC.

In other words, credit and consumption based growth in the financial sector is facing a difficult future, necessitating the search for more capital intensive longer-term returns, and minimizing capital from credit cards, mortgages, education loans, and all fields of insurance and especially pensions.

So drastic reduction in institutional capital accumulated from consumer ‘rents’, combined with next year’s beginning drawdown on baby boomer investments, will reverse seventy years of trend.