Posted on 03/10/2019 6:50:56 AM PDT by rickmichaels
New York City could be one recession away from bankruptcy, financial analysts are warning.
Experts say that the city’s high tax burden, its net out-migration, and skyrocketing public spending could result in New York’s first bankruptcy in more than 40 years.
‘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,’ economist Milton Ezrati told the New York Post.
‘New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.’
The last time New York was close to bankruptcy was in 1975, when then-President Gerald Ford famously refused to bail out the city from its crippling debt.
Last October, the city said that its long-term liabilities, including bonded debt, pensions, and other retirement benefits for its public sector workers, reached a record $257.3billion, an increase of $4.7billion since fiscal year 2017.
The average liability per New York City household has increased by more than $1,500 to $82,577, according to the Citizens Budget Commission.
Mayor Bill de Blasio’s new budget includes an additional $3billion in spending - on top of the current $89.2billion.
Analysts say de Blasio’s preliminary fiscal 2020 budget includes $750million in savings, but that won’t be enough if a recession comes - as many predict.
The mayor has also increased spending since taking office. The pace of his spending increase is triple the rate of inflation, according to the Post.
The state has also added more than 33,000 public sector workers in the last five years, thus increasing its long-term liabilities.
To make matters worse, Governor Andrew Cuomo’s preliminary budget calls for a $600million in cuts to spending on the city.
(Excerpt) Read more at dailymail.co.uk ...
I live in NYS too. A real financial crisis needs to come along and bankrupt NY City - ASAP.
It is the nucleus of two very evil trends in America, urban Neo-marxism/socialism, and government-supported, financialized, fiat-money crony-capitalism.
One would think these two things are dissimilar, but they actually support and maintain each other.
No, but so what? NYC’s long term liabilities are less than a fifth of its gross
municipal product. The federal government’s long term liabilities are nearly five time out gross national product. There’s no comparison.
Since when have Freepers been so determined to play down the seriousness of the national debt?
No, but so what?
...
Those with better finances pay lower interest rates.
The refugees from NYC should relocate to Calizuela and the refugees from Calizuela should relocate to NYC, and the rest of us will be happier for it.
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