VHF, Sure looks like some dark days ahead for New York City.

As I've posted before, I spent a 25+ year career in New York City living just a few blocks north of the World Trade Center. Rallies in the city, especially by the unions protesting one thing or another, are common almost every year, but this one seems to be a bit bigger than usual, though I've seen a lot of big ones. The protests are usually directed more at the governor and the state legislature than the city, though that's changing rapidly. Every year, with few exceptions, the governor has proposed huge cuts for the city, and the unions have usually, though not always, persuaded him otherwise, using whatever tactic worked. This year it may be impossible.

For one thing, lots of people complained at the huge salaries and bonuses paid out to the Wall Street crowd without realizing that some 12-15% of all that cash ended up in in the state and city coffers from taxes. That plus a big cut of Wall Street profits and business in general provided the state and city with goo-gobs of cash.

With that drying up, New York has some big problems. I was quite familiar with the unions and they are one tough bunch to deal with individually and especially collectively. There are five city unions with net pension assets of roughly 102 billion among them as of last June 30. They were down some 8% at that time year to year and no doubt a lot lower now.

The mayor is threatening to lay off 12000 teachers plus thousands of city workers (I think thousands have already gone) plus taking a whack at police, fire, transit, etc. The unions and community groups, of course, are gagging over this. Collectively, they have a lot of muscle, but the governor and mayor have few options. And he's got big cajones.

From what I hear, the real estate market is holding up very well in the city. Quite remarkable, I'd say.