This is an article about how New York was saved in 1975. No thanks to the federal government
Mr. Rohatyn recalled the spokesman for President Gerald R. Ford comparing New York City to a wayward daughter hooked on heroin. â€œYou donâ€™t give her $100 a day to support her habit,â€ the official said.
Thanks to the far thinking Rohatyn New York became a viable city and some of us lived in much more comfort than we would have. Big Mac bonds paid anywhere from 8% to over 11%. To put that into perspective however in 1981 mortgage rates were 18% which is why many baby boomers including this one came late to home ownership. It actually turned me off mortgages. But back to the subject. Gretchen Morgenson, the writer of this article is arguing that the federal government could look to New York for guidance.
My personal opinion. She’s right but they would wait until pigs fly to look at New York for anything.
â€œWe did not have time for theoretical analysis,â€ Mr. Rohatyn recalled. â€œWhat we needed was for people who had never really worked together before â€” and some who had antagonistic relationships â€” to cooperate quickly and on hugely difficult political and economic matters.â€
Shared sacrifice was the first order of the day. â€œWe knew the only sources we could look to were the people who had created the problem in the first place,â€ Mr. Rohatyn said. That meant the unions with their rich contracts, he said, and the banks, which had lent too much to the city.