The era of high profits is over for Wall Street...

Uhhhh, if they're even making half of what they did at it's peak it's still HIGH PROFIT (compared to other industries)

So I think you should rephrase your words.

1/2 profit= 1/2 wages= 1/2 taxes. i think the figure for ny state is 40% of tax base comes from financial industry. so if all else is off by only 20%, that's an overall drop in tax revenue of 32%. so if tax revenues, drop by 32%, what do you think will happen?

"...what do you think will happen?"

Nothing good! Going to take years and years to dig out of this hole in any meaningful way (real vs. nominal gains).

"so if tax revenues, drop by 32%, what do you think will happen?"

That's so easy, it must be a trick question.

State legislatures will increase state and local gov't jobs 10%, increase spending 10%, and raise taxes 42% to pay for it all. Duh.

well put...kudos to our governor, the genius. lets bring back the sex fiend. he's starting to look good.

Give the pricks a shoeshine box, that's about how smart they were! Masters of the Universe....my ASS!!

What happens if the tax base deteriorates so severely? More tax hikes. What should actually happen: start cutting entitlements like medicaid and food stamps, welfare, etc. Tell poor people to stop having more poor children because they won't get any money for doing so.

Unfortunately, this is not possible so the end result will be higher taxes and the flight of middle and upper middle classes and even some rich, further deteriorating the tax base. Ultimately, new york will become another detroit. Many detroits will begin popping up all over the country.

The real question is: where will we all run to when everywhere becomes detroit?

people have no idea how bad this is going to get.
The city is toast.
I think prices go back to 1998 levels

I agree. Just took a drive through New Canaan last weekend and every other house was for sale.

"State legislatures will increase state and local gov't jobs 10%, increase spending 10%, and raise taxes 42% to pay for it all. Duh."

LOL.

And, unfortunately, accurate in NYS.

although, if it matters... math not quite on.

If tax revenues drop 50%, you need a 100% increase to get back to where you were.