State and City Economies Will Feel Effects of Wall Street Turmoil

The job losses that are likely to come from the bankruptcy of Lehman Brothers and the sale of Merrill Lynch to Bank of America will affect the economies of New York City and New York State.

REPORTER: But Greg David, editor in chief of Crain's New York Business, tells WNYC's Brian Lehrer the city is in a better position to handle the downturn, because the mayor and the council have already cut spending.

DAVID: I think people's ire should be focused on the state, like silver and skelos, who a month ago would not cut the budget as much as David Paterson asked for, now clearly the situation is worse; they've got to stop caring about the Nov election and start caring about the long term.

REPORTER: In his news conference today, Governor Paterson says he's been keeping legislative leaders informed about the state's economic condition.