Wednesday, January 28, 2009

NEW YORK City fears the return of 1970s fiscal crisis

NEW YORK city and many other cities of US are worrying about the economic condition of the country.It remind us of the Great Depression of 1930s.It also remembers us of the 1970s fiscal crisis which almost pushed it into homeless crowded people,which resulted in increase of crime rates and bankruptcy.many people fled from the NEW YORK city for food and shelter to a safer place.It almost took 20 years to come back to its normal situation.

Coming back to current financial crisis reports from sources says that,Mayor Bloomberg is seeking a third term promise that although the whole city is experiencing is a huge financial crisis , he will not allow the city to remember the darkness of those days.

But there are fear and worry among the citizens of us .There is a sign of growing stress among the people and why not if we look at last year there were 444 bank robberies compared to those of 283 in 2007 and also rise in homelessness.this are all sign of alarming financial crisis.

According to Budget plan by David Paterson NEW YORK State Governor ,the city will cost $1.6 billion which will result thousands of police officers,firefighters,teachers, to lay of.And also the Mayor has has already stated that he will cut $ 3.6 billion from next year budget $ 60's largest taxpayer Wall Street financial industry has lost more then $ 36 billion in the recent years.

Raising of funds for many states has become harder because of financial market crisis individual are loosing confidence in municipal bond.As the result of auction rate securities market collapse last which resulted in the slash down of top ratings.NEW YORK city average sales bond slashed down to $300 million which was $1 billion at once.

So coming back to a conclusion and looking back to future there is something to worry about.But every one is aware of it and The government is taking major steps to overcome this situation and this is the time when we all unite to get out of the giant financial crisis and to improve the economic condition of our country.

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