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Market Meltdown: New York's Financial Crisis

Wednesday October 2008

The modern financial industry drove New York’s economy for 25 years.How did it get swept away, and what’s next for New York?

Congress passed a Wall Street bailout with a hefty $700 billion price tag. Storied firms such as Bear Stearns and Lehman Brothers have flopped. Huge commercial banks including Washington Mutual have failed, while Wachovia came perilously close. The private credit markets are all but defunct and market shares dove more than 30 percent over the past year. The landscape of Wall Street has been irrevocably changed.

Our expert panels discussed the root problems behind the meltdown, the government response, and the fiscal and economic outlook. They will address issues such as: How is this Wall Street downturn different from past crises? How badly has the local and state tax base been damaged, and for how long? How should state and local authorities confront this reduced tax base? How will the essential demise of the tier-one investment banks impact New York State and City coffers? How can the city and state expand opportunities for non-financial companies in this environment?


8:00–8:30 AM Registration
8:30–9:30 AM Panel One: Taking Stock: How We Got Here
David Malpass, President, Encima Global LLC
Amity Shlaes, Senior Fellow, Council on Foreign Relations
Moderator: Gordon Crovitz, “Information Age” Columnist & Former Publisher, The Wall Street Journal
9:40–10:40 AM Report Presentation
Panel Two: Red to Black: Balancing New York’s Books
John Cape, Senior Managing Consultant, The PFM Group; Former New York State Budget Director (2004-2006)
Nicole Gelinas, Contributing Editor, City Journal
E. J. McMahon, Director, Empire Center for New York State Policy
Moderator: Adam Brodsky, Deputy Editorial Page Editor, New York Post
10:50–12:00 PM Panel Three: Seeding the Big Apple: Reinventing New York’s Economy
Jason Bram, Microeconomic and Regional Studies Function, Federal Reserve Bank of New York
Edward L. Glaeser, Professor of Economics, Harvard University
Kevin Ryan, Founder, AlleyCorp; Founder, Double Click
Julia Vitullo-Martin, Director, Center for Rethinking Development
Moderator: Steve Malanga, Senior Editor, City Journal
12:00 PM–12:30 PM Reception
12:30 PM-1:00 PM Luncheon
1:00 PM-2:00 PM Luncheon Address: Carl J. Schramm, President & Chief Executive Officer, Ewing Marion Kauffman Foundation
2:00 PM Adjournment