We don’t want to be short our own city, but the fact of the matter is that New York is in trouble. Ask Peggy Noonan. Or Mike Bloomberg. With big banks in the toilet, the city is losing 65,000 high paying jobs and billions in tax revenue.
All’s not lost, though. The New York Times reports the city’s going to claw its way out of this slump by taking a few big bets, crossing its fingers, and hoping for the best.
But last week, Mr. Bloomberg laid out a very different vision of the city’s future. Standing in a large, empty space a mile north of the financial district, he pinned hopes for a financial revival on businesses of a different scale: start-ups conceived and managed by the defrocked wizards of Wall Street.
Rather than write them off as losers in the casinos of capitalism, city officials are encouraging them to start over, the Silicon Valley way. As part of a $45 million program, the city will subsidise garage-size offices as hatcheries for their most promising ideas for new businesses in finance or other fields.
The Alley comes gunning for the Valley. We love it. What else does the city have up its sleeve?
One new focus of city officials’ attention is maintaining and developing financial exchanges and other infrastructure for the sector. Among the current concerns is catching up to the Chicago Climate Exchange, which is trying to establish itself as the hub for the trading of greenhouse gas emission credits. The New York Mercantile Exchange started trading a few environmental securities last year as a prelude to what it calls the Green Exchange.
The Green Exchange employs only a few people so far and all of the trading on it is expected to be conducted electronically, said a spokesman for CME Group, which owns it. But city officials are more interested in the cachet and magnetism of being the home of what could be the next big thing in trading and finance.
Great. Maybe this will be a big success, then we’ll have financial wizards develop some climate related CDS and the whole process will start over again. Its time to give up exchanges, New York City. Can’t you see they’re no good for you?