Tag Archives: New York

800,000 People To Flee New York & California In Next Three Years, by Tyler Durden

It’s called voting with your feet, in this case against higher taxes. SALT, the new limitation on the State And Local Tax deduction, will pour salt on the wounds. From Tyler Durden at zerohedge.com:

Over the past decade, more than 3.5 million Americans have left high-tax blue states like California, New York, and many others in the Northeast, for low-tax red states like Arizona, Florida, and Texas.

While the migration has been happening for years, conservative economists Arthur Laffer and Stephen Moore are forecasting the next significant movement out of blue states could be right around the corner.

Earlier this week, in an op-ed in the Wall Street Journal titled “So Long, California. Sayonara, New York,” Laffer and Moore spoke about a provision within the brand-new tax bill that could create a mass migration of roughly 800,000 people – fleeing their estates in California and New York for better days in low-tax states over the next three or so years.

Both authors said capping the deduction for state and local taxes (SALT) to $10,000 will accelerate the velocity of the migration of high-income earners from the Northeast and California to regions like “Arizona, Nevada, Tennessee, Texas, and Utah.”

“High earners in places with hefty income taxes – not just California and New York, but also Minnesota and New Jersey – will bear more of the true cost of their state government.

Also in big trouble are Connecticut and Illinois, where the overall state and local tax burden (especially property taxes) is so onerous that high-income residents will feel the burn now that they can’t deduct these costs on their federal returns. On the other side are nine states – including Florida, Nevada, Texas and Washington—that impose no tax at all on earned income.”

To continue reading: 800,000 People To Flee New York & California In Next Three Years

 

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The New Yorker Warns of ‘Creepy Infiltration’ of Chick-Fil-A Restaurants in New York City, by Thomas D. Williams

That “infiltration” couldn’t have anything to do with the fact that Chick-Fil-A makes darn good chicken sandwiches, could it? From Thomas D. Williams at breitbart.com:

The New Yorker announced in a blatantly anti-Christian essay Friday that the arrival of Chick-fil-A restaurants in New York City “feels like an infiltration, in no small part because of its pervasive Christian traditionalism.”

The April 13 article by Dan Piepenbring, ominously titled “Chick-fil-A’s Creepy Infiltration of New York City,” reads like old Ku Klux Klan propaganda against Catholics, Jews, and blacks. It is evident from the first line through the last that the only thing that disturbs Mr. Piepenbring about the restaurant chain is the overt Christian faith of its owners.

Apparently unaware of just how bigoted his essay sounds, Piepenbring offers as evidence of Chick-fil-A’s “creepiness” that its corporate headquarters in Atlanta “is adorned with Bible verses and a statue of Jesus washing a disciple’s feet. Its stores close on Sundays.”

It makes one shudder just to imagine it.

Mr. Piepenbring suggests, moreover, that there may be a sinister, “ulterior motive” behind the restaurant’s work, other than just selling chicken sandwiches, and it has to do with the G-word.

“The restaurant’s corporate purpose still begins with the words ‘to glorify God,’ and that proselytism thrums below the surface of the Fulton Street restaurant, which has the ersatz homespun ambiance of a megachurch,” the essay announces in what is clearly meant to be a frightening revelation.

As one observer has pointed out, the New Yorker would never dream of asking if Muslim- or Jewish-owned businesses should be allowed to “join” the New York community, but they believe it is perfectly acceptable to do so in the case of Christians.

Mr. Piepenbring has a particular issue with the Chick-fil-A “Cows,” which serve as the chain’s unofficial mascots.

The omnipresent Cows, he states, have “remained one of the most popular, and most morbid, advertising campaigns in fast-food history,” due in part to their mantra of “eat mor chikin.” What Piepenbring apparently finds to be “morbid” about the cows is their willingness to suggest that humans consume a fellow farm animal.

If this seems like a bit of a stretch, well, that’s because it is, but this does not deter Piepenbring in his quest to make readers believe there is something deeply troubling about Chick-fil-A.

“It’s worth asking why Americans fell in love with an ad in which one farm animal begs us to kill another in its place,” he writes.

“The joke is that the Cows are out of place in New York—a winking acknowledgment that Chick-fil-A, too, does not quite belong here,” he declares peremptorily.

To continue reading: The New Yorker Warns of ‘Creepy Infiltration’ of Chick-Fil-A Restaurants in New York City

Murders in London Overtake New York for First Time Since 1800 Under Sadiq Khan, by Jack Montgomery

Undoubtedly the headlined statistic has nothing to do with immigration or Muslims. From Jack Montgomery at breitbart.com:

London has overtaken New York City for number of murders for the first time in over 200 years under the mayoralty of Labour’s Sadiq Khan.

Britain’s multicultural capital edged ahead of the American city — once so notorious for its high crime rates that it was chosen as the setting for Charles Bronson’s Death Wish –– in February, The Times reports.

London saw 15 killings to New York’s 14 over the course of the month, and appears to have outstripped ‘Gotham’ yet again in March, with 22 killings to 21.

Historically, London has had a murder rate per person between half and one-twentieth of New York’s since 1800, according to FBI data and studies by University of California researcher Eric Monkkonen.

The change is partly a consequence of Mayor Khan’s campaign against using stop and search on ethnic minorities, with London police chief Cressida Dick admitting that constables have become “fearful” of confronting suspects as they “might get into trouble or might not be supported if they had a complaint”.

Figures released last year showed London was already the more dangerous of the two cities for almost every other category of violent and sexual crime, with Londoners six times more likely to be burgled than New Yorkers, three times more likely to be raped, and one and a half times more likely to be robbed.

The numbers fly in the face of Mayor Khan’s claim that London is “the safest global city in the world, and one of the safest cities in the world” in 2017.

This assertion already appeared highly questionable after a spate of radical Islamic terror attacks and an admission that hundreds of Islamic State volunteers have returned to the capital and are not being monitored, alongside disturbing developments such as the city being crowned “acid attack capital of the world” following an epidemic of assaults using corrosive substances.

To continue reading: Murders in London Overtake New York for First Time Since 1800 Under Sadiq Khan

New York’s Office Market Gets Crushed, Bubble Deflates, by Wolf Richter

The interesting thing about the New York office market is that sales have been declining for three straight quarters even as the stock market was making new highs. Generally the office market moves with the stock market. From Wolf Richter at wolfstreet.com:

Where the heck is the Foreign Money when you need it?

The market for office buildings in one of the hottest and most overheated real-estate markets in the world, New York City, just went into the deep-freeze. If you see the word “plunge” a lot below, it’s because that’s what happened in the first quarter of 2017.

It was exactly what no one in the industry needed. Sales of large office properties (those with over 50,000 square feet) that closed in Q1 2017 plunged 63% year-over-year, from $5.54 billion in Q1 2016 to $2.1 billion. It was the lowest transaction amount in any quarter since Q1 2013.

According to Commercial Café, which analyzed data from Yardi Matrix and PropertyShark, that $2.1 billion in Q1 office sales, in total 10 deals, was down an ear-ringing 80% from the $10.3 billion, and 26 deals in Q1 2015.

This chart shows the plunge in billion dollars:

In terms of square footage sold, a similarly ugly picture emerges. Sales plunged 39% year-over-year to 2.8 million square feet, the lowest in the data series going back to 2013, and down 74% from the glory days of Q1 2015:

The average price per square foot of these sales plunged 23% year-over-year, to $741 per square foot, and 36% from the peak, which occurred in Q2 2015. It was the lowest average since Q1 2014. It was an ugly quarter.

To continue reading: New York’s Office Market Gets Crushed, Bubble Deflates

Another Condo Bubble Bites the Dust, by Wolf Richter

The top end of the housing and condo markets in places like San Francisco, New York, Miami, and London is starting to crack. From Wolf Richter at wolfstreet.com:

Luxury condo boom in Lower Manhattan turns to glut, prices sag

In Lower Manhattan, 31 towers with over 5,000 apartments are sprouting up. They’re not exactly in the “affordable” category. The median price for condos – half sell for more, half sell for less – has soared 77% since 2013, to $2.43 million, while the median price in the overall Manhattan condo market has shot up “only” 54% to $1.84 million.

These are stunning numbers, even for those of us who’ve become inured to stunning numbers by being exposed on a daily basis to the craziness in San Francisco.

“Lower Manhattan is getting a facelift” — that’s how Frances Katzen, of Douglas Elliman Real Estate, explained the phenomenon to the Financial Times. The FT adds some color:

At 30 Park Place, an 82-story tower a few blocks from Calatrava’s new station, a new duplex apartment with more than 6,000 sq ft of living space is listed at $32.5 million through Corcoran Group Real Estate. A few doors down, Soho Properties is developing 45 Park Place, a 70-story condo project, with the cheapest apartments expected to sell for $9 million.

Don’t even ask about the association fees.

With condos, price isn’t the only expense. Association fees, which cover building maintenance, staff, indoor swimming pools, and other common amenities and charges in a luxury building, can cost a bundle. The FT found that “for example, the monthly charges for an $11 million two-bedroom midtown condo are listed at $5,600 a month.”

Soaring condo prices induce developers to build more, and they gravitate toward the top end. Why? Because that’s where the money is. Cheap credit funds their ambitions. It takes years to take a condo tower from planning to completion. Once the process is far enough advanced, it’s difficult and costly to stop it. And these towers keep growing and adding new supply, long after demand has started sagging. That’s why condo gluts are so terrible – particularly for lenders.

And demand in that space is now sagging: The number of condos sold at over $4 million plunged to their “lowest level since 2012.” To get things moving, the prices of a third of the 261 penthouses on the market in April – 261 penthouses on the market! – was cut by an average of 10%. And some prices were slashed a lot more. The FT:

In Chelsea, the asking price for a 5,995 sq ft penthouse in Walker Tower, a refurbished art deco project, fell from $70 million to $55 million in the 10 months to March, according to StreetEasy. In SoHo, a 5,912 sq ft penthouse with a private rooftop deck has been on sale for almost nine months and the price has been reduced from $26.5 million to $22.5 million.

In this elegant manner, the glorious high-end condo bubble in Manhattan has turned into a terrific glut:

Suddenly, Manhattan is awash with lavish penthouses, each with so-called “spectacular views” and “one-of-a-kind amenities.” According to Trulia, the property listings site, more than 700 apartments priced in excess of $10 million are on the market in the borough. The reality is that sellers have been forced to discount and deal on the most expensive units.

To continue reading: Another Condo Bubble Bites the Dust

The Collapse of the NY Taxi Cartel, by Peter Tenebrarum

From Peter Tenebrarum at davidstockmanscontracorner.com:

It turns out that it is not a good idea to create speculation revolving around interventionist government policies. Ever since Uber appeared on the scene, the previously coddled taxi industry is in trouble – and apparently nowhere more so than in NY City.

In NYC, there is a special situation: in the 1930s, the city created the “taxi medallion”, artificially limiting the number of taxis allowed to work in the city. These medallions have become objects of speculation and have been thoroughly financialized.

As Jeffrey Tucker reports, Uber has apparently busted the taxi cartel and destroyed the medallion market in the process:

“An age-old rap against free markets is that they give rise to monopolies that use their power to exploit consumers, crush upstarts, and stifle innovation. It was this perception that led to “trust busting” a century ago, and continues to drive the monopoly-hunting policy at the Federal Trade Commission and the Justice Department.

But if you look around at the real world, you find something different. The actually existing monopolies that do these bad things are created not by markets but by government policy. Think of sectors like education, mail, courts, money, or municipal taxis, and you find a reality that is the opposite of the caricature: public policy creates monopolies while markets bust them.

[…]
In New York, we are seeing a collapse as inexorable as the fall of the Soviet Union itself. The app economy introduced competition in a surreptitious way. It invited people to sign up to drive people here and there and get paid for it. No more standing in lines on corners or being forced to split fares. You can stay in the coffee shop until you are notified that your car is there.

In less than one year, we’ve seen the astonishing effects. Not only has the price of taxi medallions fallen dramatically from a peak of $1 million, it’s not even clear that there is a market remaining at all for these permits. There hasn’t been a single medallion sale in four months. They are on the verge of becoming scrap metal or collector’s items destined for eBay.”

To continue reading: The Collapse of the NY Taxi Cartel