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The Lehman Brothers Effect


What the reshaping of Wall Street means for New York.


The collapse of Lehman Brothers and the makeover of American capitalism will affect a lot of people in a lot of ways, not least of all New Yorkers.

Mayor Mike Bloomberg said every Wall Street job creates 2 others and predicted tough times ahead for the 5 boroughs., a New York-based media gossip blog, declared an end to the era of bottle service - the practice of selling nightclub patrons bottles of booze at obnoxious markups in exchange for a place to sit. Nightlife impresarios are already working on a new hook; some are even entertaining the possibility of treating customers with something approaching respect.

And you can bet that bonus season will look markedly different than it did in 2006, when Goldman Sachs (GS) doled out $16 billion to employees.

But the trickling down of Wall Street's woes will likely hit those of more modest means, too. A September 18 article on Spiegel Online explained the situation thusly:

At the side entrance to Goldman Sachs on Pearl Street, limo chauffeurs sat waiting for their customers, still above in their office towers cowering over the accounts. "If they go under," said Rashid Amal, who works as a chauffeur for a firm called Excelsior, "then I will soon be out of a job, too."

Anecdotal, yes? But also probably frighteningly on the mark. Here, Minyanville guesses at just a few of the ways the city will reel from the fallout.

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