And Then The Thing Happens

Shiller on New York: We’re Ancient Rome, Right Before the Fall
Yale economics professor Robert Shiller famously predicted the death of the dotcom boom. He’s been warning about a real estate bubble for years, but now he says New York will self-destruct if prices don’t come down: ‘It can’t keep going like this!’

Is the tip-top of the high-end market vulnerable, or is it protected because there will always be enough billionaires who want to grab up the small amount of trophy properties?

The point of the [Christopher] Mayer and [Todd] Sinai “Superstar Cities” paper is that income inequality is worsening in the U.S. and it’s worsening around the world. And their point about superstar cities is that they are increasingly populated by the super-rich, not just New York … Where will it go from here? The “Superstar Cities” people seem to think that it’s just a law of nature and will continue, but I wonder … The idea that Manhattan is going to be this super-rich city in the midst of a country where more and more people are having trouble, where these low-income wages are not going up? I don’t know! I just wouldn’t bet on it. I’m not talking about this election, but eventually something has a chance of happening that’s going to stop this.

If not political action then perhaps a set of terrorist dirty bombs that contaminate the city and make it uninhabitable. Put that into your spreadsheet and figure the loss to the national — and global — economy.

Explore posts in the same categories: C.O.A.T. - Money

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