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Boom Towns to Gloom Towns

Bloomberg has an article comparing the woes of global financial "capitals" of London and New York.
While financial services firms account for about 12 percent of New York City employment, they represent almost 30 percent of total wages and salaries, said Marisa Di Natale, the regional labor market specialist for Economy.com.

Bill Kokkosis, owner of the Majestic Delicatessen Cafe across the street from the New York headquarters of Lehman Brothers, said he was missing about half of his usual lunch customers Sept. 15, the day the firm announced its bankruptcy. ``This definitely affects the whole area,'' Kokkosis said. ``It looks like 9/11.''

...``The top end of the London housing market is taking a hit,'' said London-based Howard Archer, Global Insight Inc.'s chief U.K. and European economist. ``And there are other spill- over effects because city people are big spenders in restaurants and on luxury goods.''

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.

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