Crash Causing Recession in New York, Newspaper Reports
The October stock market crash is causing a recession in New York that will last until at least late 1988, erase as many as 71,000 jobs and cut projected city tax revenues by up to $200 million, according to a report prepared by the WEFA Group, a private economic consulting firm.
“Wall Street job and salary cuts will ripple through the New York economy, particularly high-priced Manhattan, deflating home and co-op prices, retail sales, restaurant receipts and construction spending,” said Crain’s New York Business in a story based on a year-end forecast prepared by WEFA.
The newspaper quoted the forecast as saying the skid will last until late next year or early 1989.
By the end of 1988, the Oct. 19 market collapse will cost the city 71,000 jobs, nearly half in the high-paying securities and banking fields, Crain’s predicted.
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