It is on.
New York is turning into a cesspool in more ways than one. This is going to be a major problem in light of the Donald Trump civil case.
Whether you like Trump or not is immaterial to the conversation. Here is where we see the legal proceedings entering in a way that is going to decimate the government.
To start, I am not a lawyer so arguing the merits of the case is beyond me. What I can tell you is how it can affect companies. This is a problem for New York since some entities, especially financial, already were departing.
Miami Is Going To Be Wall Street 2
Donald Trump was sued the state for basically fraud pertaining to his claims of value when going for loans. This is something that is commonplace especially with real estate. Valuation is not an exact science as anyone who tried to have a property appraised knows.
The problem with this case it is alerting everyone about the potential to be sued by the state.
Kevin O'Leary, one who I disagree with often, came out and said he will not invest in New York in the future. This is the mindset, I am sure, of many.
Rule of law is crucial for business. When it is apt to change, we see how money will locate elsewhere.
Basically, the precedent in New York is now that anyone who has dispute with a bank over the valuation on an asset is subject to being sued. This is something that is certainly going to enter into the risk profiles.
Finance Relocating
There are other reasons why New York City was facing difficulty. At the top of the list, even before Trump, is taxation. This is causing people to think about relocating.
One, who is not tied to New York, is Jeff Bezos.
He recently fled the state of Washington for Florida. The appeal other than the sunshine: no state income tax. Recent reports put his savings at around $600 million.
A couple years ago, legendary corporate raider, Carl Icahn, moved his entire company, employees included, to the Miami area.
Not long after, Goldman Sachs moved its most profitable division to Palm Beach area. Point72 Captial, Steve Cohen's hedge fund, opened an office there also, raising the prospects of eventual relocation.
In the era of telecommunications and technology, there is no allure to New York. Actually the lesson should have been learned with the servers and high frequency trading.
New YorkCity decided a great way to raise tax dollars would be to hit up each transaction occurring within its jurisdiction. Since Wall Street is resident there, along with some of the largest financial institutions, it was a sensible thing to a bunch of politicians.
What happened?
No money was raised. The companies simply moved their hardware across the river to New Jersey. They are still close enough to the exchanges to operate yet outside the reach of the City.
Carl Icahn and others are taking a similar path. No longer does one need to be in New York City to be a relevant financial institution. In fact, people are now dealing with entities with no idea where they are located.
In short, people do not care.
Money Goes Where It Is Treated The Best
This is an old financial and monetary saying yet it holds true.
It is something that often pertains to interest rates and the return on capital. However, we are seeing the issue of taxation entering the conversation even more.
States like New York and California are seeing an outward migration of high net worth people. The problem is that, not only are individuals leaving, they are taking companies with them.
Oracle is an example of this. Larry Ellison left California to move to Hawaii. Before doing so, Oracle was relocated to Texas. We can only imagine the loss in taxes between that company and Ellison.
This was all described in The Layout For The Globalization Of Real Estate. That article approached the idea of real estate going through a situation similar to manufacturing. Essentially, because of remote work, people would move to those areas where the cost of living was lower.
The same is true for companies.
If one operates looking at a screen tied to the cloud, that can be done from anywhere. The same is true for a company that has a bunch of people looking at screens tied to the cloud. Again, as long as there is Internet, it can be done from anywhere.
This fits financial firms almost perfectly. The majority of their business activity is done in this manner. No longer is street address crucial to potential customers.
Here is a headline from Bloomberg last August.
This is a trend that is likely to continue.
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I'm counting down the days until I will finally relocate from NYC to the West Coast of Costa Rica. I've been diligently planning my move to Jaco for quite a few months already. Now I just need to convince my partner!
Finances could end up pushing the move on a lot of people. Things are going to get costly as the government inserts itself into more aspects of the local economy.
That's true, but I also save a bunch of money due to the widespread availability and accessibility of public transportation and quality of life infrastructure in NYC. Sharing a three-bedroom apartment with other people allows me and my partner to rent 2 bedrooms (one for our residence and one for a home office) at a very reasonable price in a desirable Brooklyn neighborhood that's walking distance to some of the best nightclubs in North America! We also get to split the cost of utilities three ways.
My monthly bill is lower than many friends who left the city for the suburbs since I don't pay for a car, insurance, or gas. I mostly just walk or bike to the places I want to go in my neighborhood or pay the $2.90 fee to take the subway. I've lived in places like Austin, Denver, and Phoenix, and even ten years later, I'm finding there is still tremendous value for staying in a metropolis like NYC.
Add to that the fact that many truckers won't deliver there anymore. It's not just the protesters objecting to the Trump trial decision. They were losing drivers due to high crime. The lack of drivers means shortages will pile up. Prices that are already high, skyrocket. The only rational decision is to leave making it a city inhabited by illegal aliens. It will be interesting to see it turn into a ghost town...
Absolutely.
That is how the average blue collar worker can change things. Truckers are the backbone. When they refuse to go into an area, this is a big deal.
I hope it spreads to all truckers.
Except that this supposed boycott is already falling apart. The guy who originally called for it changed his mind. I’ve seen no evidence that truckers are actually following through with this.
Probably due to this...
Well, maybe, but there have recently been called-for trucker boycotts to Colorado and Florida and as far as I know the Hobbs Act didn’t factor into either of those.
This is a possible interesting scenario that goes against the narrative that a pivot will be forced to happen (lowering interest rates)...
https://usawatchdog.com/fed-will-be-forced-to-raise-rates-to-defend-the-dollar-bill-holter/
If this is the way it goes, it could be over very suddenly when the military industrial complex is no longer able to fund war (USD fiat bribes no longer work).
Then the second "Nuremberg" trial that I predicted in Aug 2020 would be underway in summer 2025 on schedule when we get into the clotshot "died suddenly" intentional depopulation mass democide attempted by the WEF et al to support the transhumanist agenda.
https://skyscript.co.uk/forums/viewtopic.php?p=115543#p115543
I also predicted in autumn 2022 that we would not have an election in 2024...
https://twitter.com/i/bookmarks?post_id=1591107941712953344
I don't think the current US admin can afford to have an election without risking jail for most of the political party currently in power and a further cascade effect coming from foreign shores that would topple deep state actors ruling from behind the scenes.
Brickle is already considered the Wall Street of the South. I saw it starting when I was living down there. It's probably for the best at this point, haha. New York is a shit hole.
It was that way in the 1970s. People think it will bounce back. Not likely in an era where technology makes physical location less important.
I’ll have to take your word for that, wasn’t born till 82, haha. But yeah, location for that kind of thing not important anymore
The people that run NY and California (and Chicago for that matter) have forgotten that you're only supposed to shear the sheep, not slaughter them.
woah. what about relocating to asia? :P like malaysia
At some point, I believe the globalization of real estate will start to take place.
so u will consider going to Asia?
well, the weather is better I guess lol
No state income tax is much better.
I guess the Trump case might be the straw that broke the camel's back. Things were already strained and companies were moving. It will be interesting to see how states like Miami and Texas improve based on these.
It's true that legal battles like the one involving Donald Trump can have ripple effects on the business landscape. It's interesting to see how companies are already starting to consider relocating to places like Miami due to factors like taxation and the overall business environment.
Wow 😳 😲😲
Indeed is awesome 👍😎
Sounds very good to me, let New York taste its failure. Straight back to the 90s.