Party's over for jittery New York - 25,000 more expected to lose their jobs

[w¡n9Nµ7 §£@¥€r 123]

The world's financial capital has been cushioned from the economic slump across the rest of the United States. But now the glitziest US city faces a spectacular fall.

The state government this week predicted a 26 billion dollar hole in the budget over the next three years and said recession was already underway. "Harsh" times beckon, warns state Governor David Paterson.

They could be especially tough for the finance sector clustered in the skyscraper canyons around Wall Street on the southern tip of Manhattan.

The industry lost a record 22.4 billion dollars in the first quarter of 2008, double already record losses notched up last year.

Of the 188,000 people employed in the sector in 2007, about 25,000 are expected to lose their jobs, New York's state accountancy office says. Bonuses -- slices of profits dolled out annually to employees -- are forecast to plummet by 20.5 percent.

The turmoil, which has seen Bear Stearns bank collapse and mortgage giants Fannie Mae and Freddie Mac seek government rescue, is at the root of pain afflicting homeowners and businesses across the country.

Nowhere is more exposed than New York itself.

The city, like the state, relies heavily on taxing big earners. The bear market is already emptying government coffers, meaning fewer police, less infrastructure work, and other cutbacks.

...

Independent economist Joel Naroff said that although Wall Street is at the heart of the nation's economic downturn, many high-fliers will escape punishment -- and even thrive.

"Wall Street is the source of the problem you see across the country. It rose out of the financial sector, which spread into the housing sector," Naroff said.

"The thing to keep in mind is that Wall Street is extraordinarily resilient. It will come back. The only question is when? There will be extraordinary opportunities for some."

http://www.breitbart.com/article.php?id=08...;show_article=1

[Trumplestiltskin 5,791]

I won't be looking for a job in finance then...

[thetreble 19]

I have a friend who was in finance as was his father in the city. His dad was a high roller at Bear Stearns. They were both laid off when Bear Stearns was bought out months back.

My best friend here, also my husband's cousin, works in finance in the city and he has been in a bad mood for a few months now. He says the market is pretty bad and his commissions are being affected.