New York is accustomed to job losses on Wall Street. They come with just about every economic slump, and their impact is felt throughout the city. But now, as the city braces for a big contraction in the financial sector as a result of the credit crisis and the collapse of Bear Stearns, the fallout could be worse than in the past. The New York economy is more dependent than ever on high Wall Street incomes, which have jumped by more than half since 2001, to an average of $387,000, according to the city comptroller?s office. Last year, the finance industry was responsible for nearly a third of all wages earned in the city, the highest in modern times. And each Wall Street job supports three workers in other sectors.
See "With Economy Tied to Wall St., New York Braces for Job Cuts", Louise Story, The New York Times, March 23, 2008