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Politics : Formerly About Advanced Micro Devices
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To: SilentZ who wrote (456152)2/13/2009 2:01:59 PM
From: tejek  Read Replies (1) of 1575357
 
And so too with the rich. The problem for the bankers on $500,000 isn't that they can't feed their families but that they lose their positional status. And good. Screw 'em. Enjoy Hoboken. As for the rest of us, it's actually a good thing if the top falls a bit and the arms race eases. If a sizable chunk of the New York housing stock can no longer be aimed at a class of people who think $500,000 poverty wages, then housing stock will be cheaper. The more troubling question, though, is what happens to the new New York, which was largely built and sustained atop the tax revenues provided by Wall Street.

The above is a bit of stretch. While I am the first to agree that Wall Street execs don't have to live on the Upper West Side.....Brooklyn or Hoboken will do....., cutting their salaries will not bring down the cost of living in Manhattan. They are the chicken, not the egg; the tail, not the dog. Manhattan is expensive because it is an island where land is dear. And it is the cost of the land that wags the tail. Land costs would be more like Chicago or Los Angeles...still expensive but not out of this world expensive.........if Manhattan was not an island. You see the nature of the effect once you get off the island. Land is much cheaper in Queens, Brooklyn and Hoboken.

Its the cost of the land that forced Manhattan to go hi rise. That worked for a while but then it didn't. The land became even more expensive. Then there began a decentralization of the finance industry to the suburbs and other American cities. That didn't work too well either.

Of course, that in no way justifies million dollar+ bonuses and the current excesses on Wall St. Just an explanation as to why Manhattan is so expensive.
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