Lost in all the sky-is-falling coverage about the fall of Lehman Bros. is that whole bit about what it actually means to anyone who doesn't work for the company. I'll leave it to others at Ad Age to explain what it means in the branding, marketing and agency worlds. But keep in mind these companies don't exist in a vacuum. Check out the coverage at our sibling publication, Crain's New York Business
to see the effects this is having and will have on the immediate neighborhood
, on the real estate sector
and on the very government of New York.
In short, local businesses are feeling the pinch as a huge chunk of area employees disappear and the rest start freaking out and pinching pennies. On top of that, New York City has largely been insulated from the housing crisis crippling the rest of the country, but with all those lost jobs and lost bonuses it's likely to get a dose of reality. And, finally, the city has come to rely so heavily on the financial sectors for its tax revenue. Accordingly, "The demise of Lehman Brothers Holdings Inc. and anticipated job losses at Merrill Lynch & Co. could blow new holes in the city and state budgets, raising concerns about cuts in services and tax increases." (In other words, come next year people may be able to afford New York City real estate, but they might not want to live here.)