NYC Trades Prosperity for Socialism
Beads For Manhattan Will End In Tears
I have to laugh. These huge cities just shoot themselves in the foot. The Democratic Party is a far left wing party now. LA has a communist mayor, and Newsom isn’t far from one. SF had one, but has a new mayor trying to bring it back from the ungovernable and unlivable depths. JB Pritzker in Illinois governs as a fascist, and Chicago has a Marxist for a mayor. Now, NYC joins the party.
Tomorrow morning, NYC munibonds, which are AA rated, will TANK in price. For those scoring at home, sure, you will still get the interest on them, but if you try to sell one, there will be very few bidders, and the price you sell at will cause you to lose money. Boatloads of money.
I wish I were short NYC bonds.
Not only that, but the bid/ask spread on those bonds will be extremely wide. A friend who deals in munis tells me that the spread might be the widest in history for AA-rated bonds.
I shed no tears.
That’s what socialism/fascism/communism/marxism brings. Borrowing from my friend Jim Iourio, there is barely a grassblade bit of difference between them all. Hitler was not unlike Stalin.
If you are a centrist, you can’t get elected in the Democratic primary. Sorry, Rahm, you ain’t gonna be the nominee. Besides, when you say, “I am not done with service to the public,” we all know it means you aren’t done with service to yourself. Recall when Rahm left the Clinton Administration, a nice ComEd deal was pre-teed up for him so he could “earn” a big commission check.
Megan McCain said on X that all her conservative friends who think there is a chance in NYC for conservatives just FAFO…..NYC is no place for a conservative.
If this Mamdani actually gets in and gets all his policies, what happens?
Middle-class and poor people who can’t leave are stuck. The wealthy will flee. NYC has a very good venture capital industry. It will walk away. NYC is the center of consumer finance. Florida real estate will be bid up as New York finance flees.
However, the best indicator will be where NYC bonds trade. Everyone on the left loves to tout the “bond vigilantes” now that Trump is President. I predict the vigilantes come for New York City big time. There will be no big bids, and no bottom. As we used to say on the trading floor, “time stamp it”.
Then we will see how “free” all the “free” stuff they are promising goes.
Bill Clinton and Chuck Schumer endorsed the Marxist. It proves my thesis, Dems will partner with Marxists. They don't understand that their party has been eaten by Marxists. They are already out of power. Also proves Dems don't care about people---just power. AND proves even more that the Dems are now firmly a FAR LEFT party....Bill Ayers won the day there.
No matter how often you warn them, some children need to touch the hot stove. There will be loud crying in NYC for the next four years. Then a new group of children will come along and touch the hot stove again. There is no hope for these blue cities.