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NYC Dangerously Close To Bankruptcy

12 comments, 219 views, posted 6:41 am 11/03/2019 in News by REALITY
REALITY has 20791 posts, 7951 threads, 1858 points, location: South, Middle. Middle South. In the South, In The Middle.
A tormented man.

Here is an inconvenient truth for the Democratic socialists that control New York City: Gotham is "careening closer to all-out financial bankruptcy," according to New York Post.

Mayor Bill de Blasio is expected to add billions of dollars more to the budget, amid a slowing economy and outward migration caused by tax reform, a recession would send the city into a "fiscal disaster," according to the report.

Quote:

"New York City could go bankrupt, absolutely," American Institute for Economic Research economist Peter C. Earle told the Post. "In that case, the city would get temporary protection from its creditors, but it would be very difficult for the city to take on new debt."

Financial analysts warn tax burdened businesses and individuals would flee in droves, and public spending would have to surge to record levels, which would set off a fiscal nuclear bomb.

Long-term debt is about $81,100 per household, and Mayor de Blasio will spend as much as $3 billion more in the new budget for a total of $89.2 billion.

Analysts said Mayor de Blasio had detailed $750 million in savings for the preliminary fiscal 2020 budget, but that amount won't be enough to create a soft bottom during the next recession. Gov. Andrew Cuomo’s preliminary budget has $600 million in cuts for the city in 2020.

Spending is up 32% since Mayor de Blasio took office, the analysts told the Post that more spending cuts would be needed to get the fiscal house in order to avert bankruptcy during the next recession. 

NYC's long-term pension obligations have also expanded to levels that may not be manageable.

New York state is ranked No. 1 in the nation for the highest taxes, and the top 1% of NYC earners pay some 50% of income tax revenue, per the Post. If businesses and people continue to flee to lower tax states while spending continues to rise, it could lead to financial hardships for the city, analysts warn.

Quote:

"The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform," Vested's chief economist Milton Ezrati told the post.

And how close could the bankruptcy of the NYC be? Well, it depends on when the next recession strikes. For more color on timing, New York Fed President John Williams has signaled a slowdown in U.S. economic growth has already started, as the Federal Reserve is in “wait” and watch mode on incoming data.

Extra Points Given by:

tamsnod27 (5), griffin (5), HariSeldon (5), marksyzm (5)

Comments

2
1:23 pm 11/03/2019

griffin

De Blasio is fast becoming a byword for idiocy and incompetence in NYC. Everyone I know who lives in the city hates him.

2
11:12 pm 11/03/2019

Flee

Read that AOCs mother moved to a more tax friendly state and AOC had a failed business in 2016 that owes tax dollars. Not enough to save NYC, but every bit helps

1
4:01 pm 12/03/2019

i_am_god

NY Post as a source? Owned by Rupert Murdoch, the American hating Australian, publishes it like it's the National Enquire. I'd rely on other sources first.

0
6:16 pm 12/03/2019

REALITY

Quote by i_am_god:
NY Post as a source? Owned by Rupert Murdoch, the American hating Australian, publishes it like it's the National Enquire. I'd rely on other sources first.

At least it wasn't the BBC.

1
6:39 pm 12/03/2019

i_am_god

Quote by REALITY:
Quote by i_am_god:
NY Post as a source? Owned by Rupert Murdoch, the American hating Australian, publishes it like it's the National Enquire. I'd rely on other sources first.


At least it wasn't the BBC.



I'd be more inclined to believe BBC.

0
6:43 pm 12/03/2019

REALITY

I thought you might.

0
4:27 pm 13/03/2019

marksyzm

Quote by griffin:
De Blasio is fast becoming a byword for idiocy and incompetence in NYC. Everyone I know who lives in the city hates him.

Which would you say was worst of Bloomberg, Giulani and Blasio?

0
4:44 pm 13/03/2019

i_am_god

Quote by marksyzm:
Quote by griffin:
De Blasio is fast becoming a byword for idiocy and incompetence in NYC. Everyone I know who lives in the city hates him.
Which would you say was worst of Bloomberg, Giulani and Blasio?



Giulani is an asshole

0
4:49 pm 13/03/2019

marksyzm

I'd rather say sell-out

0
4:55 pm 13/03/2019

griffin

Quote by i_am_god:
Giulani is an asshole


And a rampant one at that. But the best of the three.

0
4:56 pm 13/03/2019

marksyzm

I remember my uncle in law saying that back in 2009 about Bloomberg. Obviously no word about Blasio back then

1
5:43 pm 13/03/2019

griffin

Giuliani benefited from the nation-wide drop in crime, and also in contrast to his predecessor Dinkins, who royally sucked and ended up being the last in an unbroken string of democrat mayors since like the thirties or something. You have to really suck in liberal NYC, when they are prepared to elect a republican to get rid of you.

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