This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Opinion: Third Bloomberg Term Good for N.Y. Finances

The New York City Council on Thursday passed a controversial bill, by a margin of 29-22, allowing for elected officials in New York City to extend term limits and to receive a third term. The council also voted not to send the matter before the voters in a public referendum, despite voters twice supporting the electoral limits in the 1990s.

The approval paves the way for billionaire Michael Bloomberg to seek a third term as mayor of the city. A third term for the mayor could be good news for municipal bond investors who might be looking for safe havens in a difficult market environment.

Bloomberg warned of the economic peril facing the future of New York in a press statement: "City Hall must now move forward with the important decisions that face us, particularly finding ways to soften the fallout from the economic downturn and balancing our budget as revenues decline."

Bloomberg's description of New York City's fiscal crisis is dire, but correct. The city has been bolstered over the last several years by the strength of the euro as European tourists took to shopping sprees in New York's retail stores and real estate market. That game has ended. The euro has taken a beating since hitting its high of 1.60 vs. the dollar in the spring. On Friday it was trading below 1.26. With fears of inflation receding, the dollar may continue to strengthen against the euro.

Of course, the worst news for the city would be Wall Street. The financial crisis has seen several major banks and brokerages implode, including Bear Stearns, Merrill Lynch (MER) and Lehman. Some estimates suggest Wall Street could shed as many as 200,000 jobs, and performance bonuses for 2008 are likely to be stunningly bad.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs