Monday, November 24, 2008
New York sneezes; will London catch its cold?
New York may lose as many as 225,000 jobs and $6.5 billion in securities industry-related tax revenue over the two-year period ending in October 2009. “Wall Street is the engine that drives the economies of New York state and New York City, but the global credit crunch has slowed that engine down,” DiNapoli said in a news release. “This year is on pace to be one of the worst years ever on Wall Street.” Finance industry-related activities account for 12 percent of New York City tax revenue and up to 20 percent of state revenue, the comptroller’s office said. Before the crisis, the securities industry accounted for 5 percent of the city’s employment but almost 25 percent of wages, the office said. [Similar figures for London, presumably? How will that affect property prices in London?]