Today's Post fails to instill confidence in the economy

The Dow's Damage: 13 percent in Five Days (WSJ)

A comment

There's a lengthy comment about the coming global depression on my post from Friday that was titled From a gilded age to a great emptiness...

If the Dow does plunge again today, you have THIS to look forward to...

This e-mail is apparently making the rounds now from FiDi bar and restaurant Pound and Pence on Liberty Street:

If the Dow Jones Closes 100 Points Lower...

HALF PRICE DRINKS AT THE BAR ALL EVENING

Receive Instant Savings When You Show This Message to the Bartender on Your Phone or on a Printed Copy.

Valid Only On Beverage Purchases at the Bar.

Wall Street Week in Review

As our nation's economy gasped and wheezed through another traumatic week, enterprising reporters, tourists, news networks, protestors and, uh, bloggers, braved a chaotic Wall Street to be a witness to history. Or something equally dramatic.

Here are some snapshots from the week that was Wall Street.

From a gilded age to a great emptiness...

An excerpt from Judith Warner's "Waiting for Schadenfreude" column in the Times today:

For those of us who have hated this period — the wealth worship, the wealth gap, the elevation of everything suspiciously shiny and irrationally bubbly and stupidly ebullient, there should be some feeling of vindication. But it just isn’t coming. A great emptiness — and a gnawing kind of fear — has taken its place.

Schadenfreude is impossible because the fat cats — the ones who bent the rules, the ones who pushed the envelopes, the ones who paid lower taxes because capital gains were most of their income, the ones who opposed regulations on the banking and mortgage industries — are taking us down with them.

What we can learn from Meyer Mishkin...or not

David Leonhardt writing in the Times today:

In 1929, Meyer Mishkin owned a shop in New York that sold silk shirts to workingmen. When the stock market crashed that October, he turned to his son, then a student at City College, and offered a version of this sentiment: It serves those rich scoundrels right.

A year later, as Wall Street’s problems were starting to spill into the broader economy, Mr. Mishkin’s store went out of business. He no longer had enough customers. His son had to go to work to support the family, and Mr. Mishkin never held a steady job again.

Frederic Mishkin — Meyer’s grandson and, until he stepped down a month ago, an ally of Ben Bernanke’s on the Federal Reserve Board — told me this story the other day, and its moral is obvious enough. Many people in Washington fear that the country is starting to spiral into a terrible downturn. And to their horror, they see the public, and many members of Congress, turning into modern-day Meyer Mishkins, more interested in punishing Wall Street than saving the economy.

Things better than we think on Wall Street?

Here's a photo of a locked box for members at the New York Sports Club on Wall Street across the street from the New York Stock Exchange. As the photo below sent by a tipster shows, the occupant of this particular box couldn't be bothered with collecting the pennies that were left behind.

Noted

Before today's epic 777-point meltdown, Reuters had a piece on how the economic crunch may have an impact on downtown living:

The state labor department expects Wall Street to lose 40,000 jobs, perhaps permanently, which means the city's service industry could lose another 80,000 workers, in fields ranging from retail shops to law firms.

Lower Manhattan's future could rest on residential development, which has seen its population double to about 57,000 since 2001, as a older, obsolete office buildings were converted into trendy apartments for Wall Street whiz kids, said Mitchell Moss, professor of Urban Policy and Planning and director of the Taub Urban Research Center at New York University.

"That's going to turn out to be one of the great ironies that the residential development is going to create the demand for office space," Moss said, "because people enjoy working near where they live."

But financial sector job losses could drive down prices for apartments 20 percent to 25 percent, more than the rest of the city, said Bill Staniford, chief executive of real estate data web site PropertyShark.com.

"The buildings that have gone after this young hot Wall Street crowd will be the most vulnerable," said Pamela Liebman, chief executive at The Corcoran Group, which specializes in luxury homes in the metropolitan area.

"Finance is one of the more dominant buyer profiles that you'll see, so obviously it's a concern," said Angela Ferrara, a vice president of sales for The Marketing Directors, sales agent for The Setai, a luxury building at 40 Broad Street.

The week after Lehman Brothers failed, brokerage Cooper & Cooper received several calls from clients who needed to break their lease or could not take a new apartment, according to the brokerage's Vice President Jed Cohen.

A new name for Wall Street

Tom Robbins on the financial meltdown in this week's Voice:

Here's one small bit of payback that angry and frustrated New Yorkers could easily bestow on the grasping financial merchants behind last week's meltdown: Have the City Council — always down for a good street renaming — simply re-tag Wall Street with a new label, one more in line with its recent history: Boulevard of Greed? Gluttony Gulch? Chozzer Terrace?

For those of us prone to take the low road, these are the sort of names that instantly spring to mind, the nastier the better. And why not? How else to describe an industry that applauds nearly $500 million in bonuses for executives recklessly steering straight into the fiscal rocks, taking an entire economy down with them?

Noted

Since last Thursday, there have been 200 price cuts on properties listed at less than $10 million on Manhattan's Upper East Side or Upper West Side -- a 17% jump from the week before. Deanna Kory, a broker with New York-based Corcoran Group who's handling nearly two-dozen properties priced between $2 million and $10 million, says her showings are down by about 40% in the last two weeks compared to the same time last year. A slew of new buildings set to open in the next year will only increase supply. (Wall Street Journal)

Wall Street week in review: Thursday

Protest!

When: 4pm – ? Thursday, September 25.
Where: Southern end of Bowling Green Park, in the plaza area
What to bring: Banners, noisemakers, signs, leaflets, etc.
Why: To say we won’t pay for the Wall Street bailout
Who: Everyone!

Angry about the government's proposed bailout. Hundreds of protestors were on Wall Street and the steps of Federal Hall.













And video:

Like a crash virgin...

Doree Shafrir and Irina Alexksander look at "crash virgins" in this week's Observer, young New Yorkers experiencing their very first economic downturn.

An excerpt!

Lizzy Goodman was one of the fortunate ones of the class of 2002; upon graduating from Penn, she had a job lined up as an assistant teacher at Buckley, the all-boys school on the Upper East Side. Six years later, she’s an editor at large at Blender. Like some of her peers, she seems hopeful that, instead of being a harbinger of utter doom, this crash will instead level the playing field just a little bit.
“I don’t think anyone is hoping for American financial collapse just so that the Bowery can be seedy again,” said Ms. Goodman, who lives in the West Village. “But on the other hand, if in the wake of this collective shuttering and fearing comes a return to old school ’80s boho New York, I would certainly be in favor of that.”
The disconnect between the New York of legend and the reality of living here has perhaps never been starker. “I know a lot of people who moved to New York for something that isn’t in New York right now,” said Mr. Fischer, the marketing strategist. “There is a sense that things are in transition. I think there’s a big question of how this will change the social and cultural landscape of New York in the next two or three years. I wouldn’t necessarily say it’s excitement—but it’s apprehension that something is definitely happening.”
Of course, that’s a story that’s been years in the making; the disappearance of Lehman Brothers and the conversion of Goldman Sachs and Morgan Stanley into bank holding companies—as recently as last year thought to be a sacrilege—isn’t going to make $4,000 a month one-bedrooms on the Lower East Side any cheaper. (Or if it does, they’ll go to $3,500 a month, not $1,500.) The days when a photographer could buy an abandoned bank building on the Bowery for $102,000—as the photographer Jay Maisel did in 1966—are over; they are not coming back. (See also: the Playpen, smoking in bars, liquid lunches, Passerby, subway tokens, the Barnes & Noble on Sixth Avenue and 21st St., et cetera, not to mention the Algonquin Round Table, the Automat, Spy magazine, Warhol’s Factory, and the Palladium. Also: typewriters.) Some Wall Street types may flee; a few Wharton grads might move to Boston or San Francisco. But it seems highly unlikely that the crash will herald in some utopian new era of “creativity” or allow artists to colonize Soho, or even the East Village, again. It’s over! You missed it! Even Rent has closed! Besides, the Russians are here now.

What will a return to 1970s NYC be like?: "Well find out when we get there"

Over at the Village Voice, Roy Edroso responds to Nick Paumgarten's New Yorker essay on Wall Street's collapse and a possible return to the 1970s NYC:

Paumgarten avoids going all the way with this, suggesting that we can have the sweet side of the 70s cup without tasting the bitter. The collapse has unloosed something in him; for a long time such as he could not mention New York's bankrupt days without a show of revulsion, as old-world types could not mention the devil without crossing themselves. But the Wall Street debacle tells him that those prayerful gestures have come to naught: the bubble's burst and the wolf is at the door. Now he can admit that there was something cool about those old days, and he can even be glib about them.
But when that 70s show really goes into re-runs, we won't be able to edit out the unfunny bloopers. There was never a chance that we'd get cheaper rents without a crash, and as of now the market fluctuations are only ruffling the high end of the market. We're a long way from the vintage conditions of that last renaissance. Before you can have the Ramones, you have to have rehearsal spaces that even glue-sniffing slackers can afford. Before you can have Taxi Driver, you have to have urban moonscapes that don't need to be built by film crews. And you only get those in the wake of real catastrophe.

Joy-popping the 70s is a fun pastime, but be not deceived: playful speculation is nothing like the real thing. We remember fondly our $125-a-month railroad flat in a forsaken neighborhood called the East Village, and the good times we had there. We also remember nightly gunfire, mugger money, and Etan Patz. Are we willing to accept one to get the other? It's not worth wondering about: we'll find out when we get there.

[Photo of 216 E. 7th St. in 1979 by Marlis Momber.]

Bonus: Are you ready for 1974 again?



And! If you don't have time to watch all of the 39 Death Wish movies, let's just get to it:

On returning to the 1970s in 2008 and beyond

Nick Paumgarten on the possible implications of the Wall Street meltdown (under the heading in The New Yorker this week of Dept. of Magical Thinking):

For example: let’s postulate that the collapse of the financial-services industry spells catastrophe for New York City, a return to the nineteen-seventies. Lost tax revenues, budgetary shortfalls, unemployment (not only of those in finance but of the hordes who rely on them), plunging property values, vanished retirement accounts. Let’s cut this up, like a pile of bad debt, into various strips, and, as the rating agencies did to various slices of subprime-mortgage debt, take the top layer and, abracadabra, rate it triple A. Throw out the other strips, the grim probabilities—the crime, the decaying infrastructure, the hardship all around, the heroin and the syphilis. What do we have left? The bright side: maybe Manhattan will become affordable again, and cool, and dangerous. Dangerous in theory, but not to you or your family and friends. Dirty, but in a good way. Night clubs where anything goes. Art, music, Billy Martin.

Down and out in NYC

Headline from today's Wall Street Journal:

As Times Turn Tough, New York's Wealthy Economize:
Plastic Surgeons, Jewelers, Yacht Builders Brace for Leaner Times; Saying No to Caviar

And the first few parargraphs:

A nose job in a hospital with a private nurse in attendance had been something of a rite of passage for Joan Asher's children. But when her fourth and last child was ready for her own rhinoplasty recently, Ms. Asher asked her to postpone it.
The financial markets were simply more out of whack than her 16-year-old's proboscis.
"The other noses were more prominent," the stay-at-home mother from a tony New York City suburb in Westchester County told her 16-year-old daughter. She could get hers done when things settled down.
The financial crisis on Wall Street has New York's well-to-do reeling.

Tourists on hand to document our nation's economic collapse

Can't wait to show the kids! These photos were taken minutes after the Dow closed down more than 500 points yesterday. With the NYSE and Federal Hall right here, this is a heavily traveled area for tourists. Still, there were a lot more tourists milling about yesterday. Could have been the lure of the media trucks and lights...and blood.

Meanwhile, down the street. A few people in Tiffany's.



Not so many people shopping for BMWs. Except some dummies.

Looking at the unintended victims of yesterday's stock market meltdown

How about the US Women’s Soccer team? They visited the NYSE yesterday to celebrate their Gold Medal victory in Beijing and ring The Closing Bell.