Dear Axis of Logic:

Mike Stathis is absolutely right about the Federal financial industry rescue plan in his article, U.S. Financial Apocalypse Economists Need to Sit Down and Shut Up. It will definitely benefit the "Big 5" and enable them to acquire the medium and small regional banks. I have been calling this plan the "bail out and buy out." Soon the "Big 5" will have between 50 to 60 percent of the nation's cash deposits. That's unbelievable to think about.

Since I live in New York City, I have been especially concerned. Because Mayor Bloomberg has been an enabler of rampant development in the city. For several years everyone has known there was going to be a financial crisis. But, our mayor even being aware of this, encouraged new development within the city. He even gave a tax abatement. There are dozens of residential developments currently under construction and the economy is in the gutter. I'm under the impression many of these new developments will eventually default on their loans because nobody will be able to get a mortgage. These developments may not be able to keep up with the interest payments if they go rental. At this time recent many purchases of existing real estate in the city, such as Stuyvesant Town/Peter Cooper Village and the old NY Times building at W 43rd St., are in risk of default. You need to be realistic about New York City. We are not sitting on a pots of gold.

Sincerely,

Kenneth Mark Costantino
New York, NY

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