Today’s Wealth Report, from Robert Frank at the WSJ:
The luxury economy doesn’t rely on just a few investment banks. And even Manhattan has proven fairly resilient to the shocks on Wall Street in the past year.
But the fall of Lehman Brothers Holdings and the inevitable cuts at Merrill Lynch, which has agreed to be bought by Bank of America, could be the big bang that changes the face of the New York luxury economy.
It is too early too see any impact yet. Still, over the coming months the lost jobs and shrinking bonuses in finance are likely to be felt by the army of companies and staffers that serve Wall Streeters: from black-car chauffeurs and Breguet dealers, to pricey restaurants, wine auctioneers, art galleries, household-staffing agencies, Lamborghini salesman, private-jet operators, African safari planners and interior designers. Most importantly, it could effect real-estate–though not immediately.
Here are some expert views on the potential fallout for a few luxury sectors.