Obviously, things are getting worse in the financial world and not better. Most Wall Street firms have laid off workers on mortgage trading desks and fired overlapping workers due to "mergers" like the one between Bear Stearns and JP Morgan (NYSE:JPM). But, the evaluations by management at banks and investment houses is moving to other areas which are no longer making money like M&A and corporate finance. That could lead to more firings before the end of the year, in some cases to avoid paying bonuses to those who will get throw over the side.

According to the FT, "Executives and analysts say the redundancies – to be finalised this month as banks prepare next year's budgets – could top 70,000 among US groups alone and add to the estimated 150,000 jobs already lost by the financial sector worldwide."

Many Americans have little sympathy for New York City. Manhattan is often viewed as a center for rich people with multi-million dollar apartments, limousines, and private jets. But, a significant loss of jobs in the largest city in the US will do more than erode the tax base there.

Because of the concentration of wealth in NYC, there is also a concentration of demand for consumer goods. This is not just for Mercedes. It also includes hardware and software at Wall Street firms, building materials for high-rises, luxury goods from major retailers, and infrastructure supplies for the region's massive transportation and road systems.

What is bad for NYC is, to a very large extent, bad for the country.

Douglas A. McIntyre is an editor at 247wallst.com.