more on demographics (and tax revenues)
From Yves at Naked Capitalism:
Wall Street Losses a Disaster for New York City Finances
http://www.nakedcapitalism.com/2008/08/wall-street-losses-disaster-for-new.html
But the charm of cities depends on adequate municipal budgets. It wasn't until the Giuliani era that the number of parents deciding to remain in the City grew sharply, and with good reason. Even in the fat years of the 1980s, Manhattan wasn't entirely safe. I was lucky. I merely had my wallet stolen more times than I can remember.
All cities will be hit by declining tax revenues, but New York will fare worse due to its dependence on financial services. Despite the view that foreign buyers will keep the real estate market from declining too far, a return to 1980s conditions may dampen their enthusiasm.
