If the plodding national economy stumbles into another recession, New York — plagued by high unemployment and the prospect of a rising tide of layoffs on Wall Street — probably will take a tumble, too, according to the NYTimes.
“The likelihood of a double-dip recession has increased, and that’s led to a great deal of concern,” said Ronnie Lowenstein, director of the city’s Independent Budget Office. “If there were to be a double-dip recession at the U.S. level, certainly the city would be in trouble.”
The last recession, triggered by the financial crisis that wiped out some of the biggest American investment banks, surprised many economists and local officials by being shorter and shallower in New York City than elsewhere. The city has regained jobs lost since the financial crisis of 2008 at twice the rate of the country as a whole.
The city had the added benefit of surpluses that had piled up during the rapid growth that preceded the crisis, helping to bridge gaps in the budget in the last few years. The concern that New York would not fare so well in another downturn stems partly from rumblings about layoffs from the big banks with headquarters in the city. They did not cut as many jobs during the downturn as city officials had been bracing for, but the worry is that a second round would make up for that….
Find out the rest at http://www.nytimes.com/2011/08/15/nyregion/nyc-bank-layoffs-prompt-worries-of-double-dip-recession.html
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