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With President Donald Trump ordering a review of funding of Democratic-run cities (or what a memo calls "anarchist jurisdictions"), now would be a good time to recall just how vital New York City is to the U.S. economy.

bloomberg.com/opinion/articl…
The nominal GDP of the NYC metro area is $1.8 trillion, or almost 10% of the overall output of America’s metropolises.

That's a greater share than 2009, even though other cities like Portland and Seattle (also targeted by the memo) grew faster during the expansion.
If you target New York City, you're aiming for Wall Street.

Finance still rules the Big Apple, even after the 2008 crisis.
The region is also America's spending engine.

Residents in New York and surrounding states spend more per capita than those who live elsewhere in the country.
Meanwhile, the MTA can’t go bankrupt, but also can't survive without federal funds.

NYC needs residents to feel comfortable getting around like before. More people took MTA transportation in 2019 than the next 11 largest U.S. transit agencies combined.

bloomberg.com/opinion/articl…
Here are more details on President Trump's memorandum.

House Democrats called the move illegal, while New York Senator Chuck Schumer vowed to protect NYC from any threat to funding.

bloomberg.com/news/articles/…
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Brian Chappatta
@BChappatta
So remember how Jamie Dimon said yesterday that regulations were keeping JPMorgan from stepping in to stop last month's repo meltdown...?

bloomberg.com/opinion/articl…
Well, now it seems like maybe smaller banks read those comments and are also getting a bit more stingy with their cash...
And that's how you get headlines like:

*NY FED O/N REPO OP FULLY SUBSCRIBED, $75B INJECTED INTO SYSTEM

*EFFECTIVE FED FUNDS RATE FOR TUESDAY 1.90%; PRIOR SETTING 1.82%

It's mid-month! The Fed is doing repo operations and buying T-bills! This isn't supposed to be happening.
Read 3 tweets
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Brian Chappatta
@BChappatta
MILLENNIALS

You might think “avocado toast” or “participation trophies.” But they’re about to become the biggest adult cohort in America, and Wall Street wants to know if they can lead the U.S. economy (and stock market) to greater heights.

Thread!

bloomberg.com/graphics/2019-…
I worked with the masterful @hecharts to make graphics that provide a better sense of where millennials are at right now.

Using Fed data and other statistics, we can see how young Americans (under 35) now compare to those of the past. And how they compare to older generations.
@hecharts Some good news: Millennials are starting to make more money.

The unemployment rate has declined and wage growth has somewhat picked up in recent years. So median income is finally bouncing back after a big drop in the wake of the Great Recession.
Read 16 tweets
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Brian Chappatta
@BChappatta
Still confused about why the repo market is freaking out, and whether you should care?

It’s about BUDGET DEFICITS.

Thread!

bloomberg.com/opinion/articl…
Budget deficits, while nothing new, obviously add up over time.

While the U.S. deficit soared after the crisis, it declined each year from 2011 through 2015. It widened again under President Donald Trump.

That’s TRIPLED the amount of U.S. Treasuries out there.
Running deficits is one thing when the Fed’s engaging in QE. But starting in late 2017, the central bank began trimming its balance sheet.

By the time the Fed ended its runoff in July, it had shed about $400 BILLION from its Treasury holdings.
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