Wall Street and New York's Finances

Thursday, September 18, 2008

Bill Thompson, New York City comptroller, talks about the fall-out of the financial industry's problems on the New York City economy. Also: live coverage of President Bush's statement on the economy.


Bill Thompson

Comments [9]

Evelyn Munoz from Brooklyn, N.Y.

The sub prime mortgages emanated at the mortgage broker level, where there was no oversight. The mortgages were then converted into exotic securities and resold on a global scale. In both instances reckless leverage was the underlying tool. The promise of short-term profits on both levels blinded the issuers of those mortgages and securities to the risks involved. If a bad investment on the part of an investment bank and a mortgage issuer can so unravel national and international markets and warrant government intervention, then so too can a bad or unsophisticated decision by a home purchaser s also warrant a government intervention. The irony in all of this is that the conservative political desire for unfettered government regulations and restrictions has now produced just that - the most massive government intervention since the Great Depression. The American taxpayers, whom the conservative politicians hold in such contempt, will now be their saviors. Irony upon irony, tsk, tsk.

Sep. 19 2008 10:57 AM
Annette from Orange, NJ

This is the first time I have heard anyone honestly admit that many white people will not vote for Obama for no other reason than he is black. When I am asked if I'm voting for him just because he is black, my answer is that he speaks to me as an American, I believe in his ideas and policies and am inspired by his hopeful, optimistic, inclusive outlook. Joe Biden as VP only enhances the message. The fact that Obama is black like me is just icing on the cake that I see a future with him and his awesome family in the white house will be. Anyone who is so ignorant that they would jeopardize this golden opportunity to improve our standing in the world for a trivial reason like race is just pathetic.

Sep. 18 2008 11:35 AM
Bill from NYC orig from Youngstown, Ohio from NYC

I have now been living in NYC for 10 years but am originally from Youngstown, Ohio and a graduate of Youngstown State University.

Youngstown is a unique mix of ethnicity and economic class. I grew up on the lower south side and was one of 3 white students throughout my elementary education - needless to say it gives me a very interesting perspective. I would agree almost 100% with what your guest Professor Lincoln stated concerning the race/class lines embedded in our American psychology.

Sep. 18 2008 11:34 AM
Obi from NYC

Your guest is right on, middle class whites do not have a monopoly on racism. I'm black and any other black person who is being honest will tell you that we hear a fair amount of it when there are no white people around. I'm also hispanic and the same is true when I'm in those circles as well. I really believe its much more linked to class than race. So I'm not so sure about the "white middle class" being worse than anyone else, but just "middle class", maybe.

Sep. 18 2008 11:20 AM
max from New York

I have been putting money aside por a rainy day.
I see this as a great opportunity for investing in stocks. Stocks will never be this low again for another 30 or 40 years.


Sep. 18 2008 10:31 AM
Mike from NYC

Nobody's paying more taxes to support AIG. AIG got a loan from the FED at 12% interest. The taxpayer will probably make money on this particular deal in the long run.

Sep. 18 2008 10:17 AM
Hugh from Crown Heights

New York _was_ the financial capital of the world. That is what is changing right now. (Earlier this year there was some hand-wringing over London's exchange becoming larger than New York's.)

Broadly, what New Yorkers and most Americans just cannot grasp is that we are seeing an essential problem in any system that makes the _general well-being_ dependent on the well-being and decision-making of a select few (the executives and owners of corporations).

One thing I haven't seen is questioning about how the current collapse may be in part a result of a shift from owner-controlled corporate models to manager-controlled corporate models. That is, for several years now, corporate decision making has been driven by executives clearly driven to boost next quarters returns and their own bonuses.

Sep. 18 2008 10:14 AM
KC from NYC

I have many happy memories of the checks AIG used to send me every quarter they turned a profit. As such, I have no objection to paying more taxes to support them, now that they seem to be in trouble. It's only fair, considering how generously they shared their wealth.

Sep. 18 2008 10:11 AM

does the city have a rainy day fund? if so what would trigger it to be drawn upon? does the state and fed have a fund (from which the city can benefit)? what is the floor of government aid before there is nothing left?

Sep. 18 2008 09:07 AM

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