What Happens When the Easy Money Is Gone?

Unfortunately, a lot of that recent windfall has been the result of government spending. With Fed purchase programs, QE, QE2, and today’s QE “Can’t kick the addiction,” profits of financial firms rebounded, helping New York’s economy grow by 7.2% from 2008 to 2011, better than the national rate.

Now that the Fed purchase programs appear to be coming to an end and global growth continues to struggle, it is hard to imagine New York will benefit from similar tailwinds. Already struggling with limp revenues Wall Street firms have cut and are continuing to cut thousands of positions.