America Finally Connecting the Dots???? Impact worse the 9-11
By PATRICK McGEEHANPublished: July 26, 2008
Government officials in New York are preparing for what could be the biggest single-year decline in pay on Wall Street in history and with it a vexing shortfall in city and state revenues.
A review of the latest statements from the largest financial companies based in the city shows that they intend to hand out about $18 billion less
in pay and benefits in 2008 than in 2007. The cutting of payrolls is well under way, but the full effect will not be felt until the year’s end, when bonuses for employees based in New York could shrink by $10 billion or more, according to city officials and compensation experts.
A decline in bonuses of that magnitude would easily eclipse the drop of 2001, the year of the 9/11 terrorist attacks, when total bonuses declined by $6.5 billion, according to the state comptroller’s estimates. City and state officials said the coming plunge in pay would have wrenching effects on the local and regional economies.
Banks shutting down. States' revenues evaporating. Deficits exploding. Jobs and pay being cut everywhere. Costs and expenses skyrocketing.
What makes this time so different is that the divide between revenues and expenses has never been so wide in American History. Now the question is how will we deal with it?