Friday, July 23, 2010

Tri-State Smackdown

After I began to analyze the various financial situations of our 50 states (see: Where Should I Live Where I Won't Get Crushed?), it dawned on me there was an incredible opportunity in the Tri-State area (New York, Connecticut, and New Jersey). All three are basket cases, and no sane person should move to them unless they have to. (Connecticut is slightly less awful than the other two, for what it's worth).

But there is an incredible concentration of wealth and industry in the area. Yes, it has been slipping away, but it's still there. The opportunity is if just one of these three states gets it economic act together - reduces public debt and taxation - it would hit the ball out of the park. People - particularly the successful ones who pay taxes - would move in droves.

Which is why I found it interesting that Connecticut's governor, Jody Rell, has scheduled lunch next week with a number of successful New York hedge fund managers. The agenda: move here and we won't hose you as badly as New York!

Mayor Bloomberg responded by saying that this is what New York should be doing, i.e. making itself attractive for people and businesses. Albany has other ideas, though. New York will be the likely loser in this game. The question is, who will be the big winner? Rell or New Jersey's Christie?

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