'THIS IS SHOCKING': Bond agencies ISSUE DIRE WARNING on NYC finances
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MORNING SHOP FOR NEW YORK CITY
NEW SOCIALIST MAYOR MULTIPLE
CREDIT AGENCIES ALL SOUNDING THE
ALARM ON MAMDANI BILLION-DOLLAR
BUDGET.
NOT A DOWNGRADE, NOT QUITE YET.
KEEP GOING DOWN THIS ROAD AND
IT'S COMING.
HIS BUDGET CALLS FOR THE CITY'S
RAINY DAY FUND.
PAYING FOR BILLIONS IN NEW
SPENDING.
TELL ME ABOUT THE BOND ASPECT
FOR THIS.
ARE PEOPLE THAT DON'T UNDERSTAND
WHAT IT MEANS FOR A CITY'S BOND
RATING TO POTENTIALLY BE
DOWNGRADED.
HOW IS THAT BAD NEWS?
PEOPLE THAT LIVE IN THE BIG CITY
LIKE NEW YORK?
>> IT'S A NEVER ENDING CYCLE.
THE BOND RATING GOES DOWN.
IN THEORY THE COST OF BORROWING
GOES UP BECAUSE I'M LOOKING AT
YOU.
YOU NOW HAVE A 76 OR 500 CREDIT
SCORE.
I WILL NOT LEND YOU MONEY TWO OR
3%.
YOU HAVE TO PAY ME FOUR OR FIVE
OR 6% INTEREST BECAUSE I'M NOT
CONFIDENT YOU WILL PAY ME BACK
IN FULL.
THEY ARE THINKING ABOUT DOING A
DOWNGRADE.
THIS IS NOW THE THIRD IN 10
DAYS.
THIS IS SHOCKING.
THE INTERESTING THING, TRYING TO
OUT JUMP ME AND MY POP QUIZZES.
SO I COME WITH A POP QUIZ.
>> THE ANSWER WILL PROBABLY BE
ON THE SCREEN.
JUST WATCH.
MUCH OF THE CITY'S FINANCIAL
PRESSURES THAT YOU TALKED ABOUT
ARE DUE TO RISING COSTS FROM
EDUCATION TO HOUSING VOUCHERS.
WHAT DO YOU THINK THE CITY PH ES
IS?
>> PUBLIC HOUSING --
>> YOU ARE CLOSE THE CITY
FIGHTING HOMELESSNESS AND
EVICTION SUPPLEMENTS.
FINE, I DON'T CARE.
THAT IS NEW YORK CITY.
THAT PROGRAM IS GROWING UP 4% A
MONTH.
NOT A YEAR, A MONTH.
THEIR PROJECTED TOTAL COST
$2.6 BILLION.
THAT IS JUST ONE AGENCY I HAPPEN
TO PLUCK OUT OF THIN AIR.
>> THAT IS THE PROBLEM.
>> WE ARE PAYING FOR UNHOUSED
PERSON 81,000 A YEAR.
SO A LOT OF PEOPLE ASKED THAT
QUESTION.
DOES THAT GO RIGHT TO THE
HOMELESS PEOPLE, THAT WOULD BE A
PRETTY SWEET GIG.
A SOCIAL WORKER CAME UP TO AND
GAVE YOU A CHECK FOR 81 GRANT.
>> THAT IS NOT THE CASE.
HE HAS JUST DETERMINED TO DRIVE
THIS CITY INTO THE GROUND.
IT IS A WARNING SOUND FOR
EVERYBODY.
SOMEONE THAT DID NOT VOTE FOR
MAMDANI.
JUST GOING ON AND ON ABOUT WHAT
WAS US JUST LIVING IN THE CITY.
THIS IS WHAT HE TOLD YOU HE WAS
GOING TO DO.
HE FOOLED US, HE TRICKED US.
HE TOLD YOU HE WAS GOING TO DO
THIS AND NOW HE IS SCARED EIGHT
AND SWITCH USUALLY GETS ME A
LITTLE MORE ANGRY THAN I AM
RIGHT NOW.
BUT I ALSO HAVE TO BELIEVE THAT
COOLER HEADS WILL PREVAIL AT
SOME POINT.
THERE IS JUST NOT ENOUGH MONEY
TO DO IT ALL.
I HAVE NEWS FOR YOU, KATHY, THEY
ARE NOT COMING.
>> SHE HAS TAPPED TWO HEADS
RIGHT NOW.
SHE HAS ONE I ON THE ELECTION
THAT IS COMING UP.
SHE IS RUNNING FOR REELECTION.
HE WAS AN EARLY ENDORSER.
SHE WAS FIGHTING HERSELF.
>> CANNOT STAND KENNEDY.
OKAY.
YES.
FOUR EVERY TWO HOMELESS PEOPLE
IN NEW YORK, ONE PERSON WORKING
ON HOMELESSNESS.
WE ESTABLISHED THAT LAST WEEK.
THERE IS 4000 HOMELESS.
THAT IS HOW INEFFECTIVE THIS
CITY IS.
YOU CANNOT SOLVE IT WHEN YOU
HAVE THE HALF NUMBER OF PEOPLE
WORKING ON THE STREET.
ALSO, THE TAX THING, I WANTED TO
RAISE AN ISSUE I DIDN'T KNOW
ABOUT UNTIL TODAY.
DID YOU KNOW YOU COULD GET FINED
FOR PUTTING FOOD IN YOUR GARBAGE
?
>> I ANTICIPATED THERE WOULD BE
A LOT OF COMPOSTER'S ON THIS SET
THE MAC I DID NOT EVEN KNOW THAT
IT WAS A LAW.
>> YOU DO NOT COMPOST?
I THOUGHT YOU HAD YOUR OWN
PERSONAL COMPOST BIN.
>> WE CLEAN OUR PLATES.
>> MAMDANI IS NOW BACK TO
ENFORCING THIS COMPOST.
HE MAY NOT RAISE YOUR INCOME
TAXES RIGHT AWAY, BUT HE WILL
GET YOU WITH 1000 PAPER CUTS AND
IT WILL START WITH YOUR BANANA
PEEL.
THEY WILL GO AFTER YIELD.
THEY WILL GO AFTER ANYBODY.
>> LOWERING THE SPEED LIMIT TO .
$17,000 PER SUMMONS.
LIKE NOT CLEANING YOUR PLATE
PALM.
>> YOU LIVE IN CALIFORNIA.
YOU ARE FROM THE EAST COAST.
WHY ARE THESE LEFTISTS SURPRISED
BY THEIR RESULTS WHEN YOU TAX
PEOPLE AND DISTANT DIS-
INCENTIVIZE THEM.
WHY ARE THEY SURPRISED THAT THEY
LEAVE TAKING YOUR TAX BASE WITH
THEM.
>> IN CALIFORNIA THEY GET AWAY
WITH IT BECAUSE YOU PALM TREES
AND 63-DEGREE WEATHER.
HERE, WHAT DO THEY HAVE TO
OFFER.
WE SEE THE STOCK EXCHANGE GOING
TO DALLAS.
WE SEE THE BILLIONAIRES LEAVING.
THAT WILL CONTINUE TO HAPPEN
WHEN BARGAINS BECOME BIG ENOUGH
THAT MONEY COMES BACK IN BECAUSE
THE PRICES JUST GOT TOO LOW.
IT WILL CREATE OPPORTUNITY.
>> THE OPPORTUNITY IS NOT A NEW
YORK STATE,