{"id":271858,"date":"2026-06-19T12:05:08","date_gmt":"2026-06-19T12:05:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/271858\/"},"modified":"2026-06-19T12:05:08","modified_gmt":"2026-06-19T12:05:08","slug":"mamdanis-socialist-dreams-for-nyc-are-facing-a-wakeup-call-from-increasingly-skittish-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/271858\/","title":{"rendered":"Mamdani\u2019s socialist dreams for NYC are facing a wakeup call \u2014 from increasingly skittish investors"},"content":{"rendered":"

Mayor Zohran Mamdani\u2019s socialist dream for New York City is facing a wake-up call \u2013 in the form of a cash crunch and spiraling borrowing costs from investors who are increasingly alarmed over his Marxist experiments<\/a>, On The Money has learned.<\/p>\n

Mamdani \u2013 who has proclaimed that he will \u201creplace the frigidity of rugged individualism with the warmth of collectivism\u201d \u2013 balanced his $124.7 billion annual budget as required by New York law with a series of gimmicks, so-called one-shot revenue raisers that included delaying some pension payments.\u00a0<\/p>\n

The result, On the Money has learned, includes a looming cash shortage that has been signaled by City Comptroller Mark Levine. As earlier reported by Melissa Russo of NBC 4, the amount of money the city has on hand is alarmingly low, and risks drying up altogether come November.<\/p>\n

\"IllustrationMayor Zohran Mamdani \u2013 who has proclaimed that he will \u201creplace the frigidity of rugged individualism with the warmth of collectivism\u201d \u2013 balanced his $124.7 billion annual budget as required by New York law with a series of gimmicks. Gil Fontimayor \/ NY Post Design<\/p>\n

Wall Street is getting nervous \u2013 increasingly so about what Mamdani is looking to accomplish and how. Accordingly, it continues to demand higher interest rates on debt. That\u2019s the case not only with long-term debt, but also the usually super-safe, short-term variety.\u00a0<\/p>\n

My municipal market sources confirm the squeeze. Since the beginning of the year (when Mamdani took office) the so-called \u201cspread\u201d or difference between triple-A short-term bonds, and those issued by NYC with a maturity of one year has jumped nearly 20%. <\/p>\n

\t\t\tMore From\t\t\t\t\t\t\tCharles Gasparino<\/p>\n

That skittishness is also reflected in the 13.7% spike in longer dated, 10-year debt, the so-called risk premium investors are demanding to finance all that collectivist warmth.<\/p>\n

And it may be why the mayor\u2019s office isn\u2019t tapping short-term borrowing markets to make up for the looming cash deficit, Wall Street analysts tell On The Money. Instead, as Russo has reported, City Hall has played with delaying payments to nonprofits to ride out the storm and god knows what else as it scrambles for funds.\u00a0<\/p>\n

\"ViewNYC isn\u2019t a big profitable company; its budget is growing to pay for Mamdani\u2019s socialist dreams. Andrew Schwartz \/ SplashNews.com<\/p>\n

A City Hall rep didn\u2019t respond to On The Money\u2019s request for comment.<\/p>\n

True, this does happen from time to time with big, profitable companies who tap short-term borrowing markets to keep the lights on and paychecks flowing until revenues start to perk up. But NYC isn\u2019t a big profitable company; its budget is growing to pay for Mamdani\u2019s socialist dreams.<\/p>\n

As I have written previously on these pages, the result is that taxpayers are fleeing<\/a>. They\u2019re being replaced by poor immigrants who tap into its extensive welfare state. Mamdani is an avowed socialist, doubling down on all of the above.<\/p>\n

\t\t\t\t\t\t\tCharlie Gasparino has his finger on the pulse of where business, politics and finance meet\t\t\t\t\t\t<\/p>\n

\n\t\t\t\t\t\t\tSign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n

Richard Farley has a particularly firm grasp of the city\u2019s fiscal problems and how Mamdani\u2019s policies are making them worse and potentially unsustainable. Gotham could be heading toward financial Armageddon, he warns.<\/p>\n

He\u2019s a Wall Street lawyer who specializes in debt, and a historian of the city\u2019s fiscal crisis of the 1970s. His book, \u201cDrop Dead: How a Coterie of Corrupt Politicians, Bankers, Lawyers, Spinmeisters, and Mobsters Bankrupted New York, Got Bailed Out, Blamed the \u2026 as Usual,\u201d should be required reading for people in government.<\/p>\n

Farley tells me the logical recourse would be short-term borrowing, selling debt that expires in less than a year, known as tax or revenue anticipation notes. But \u201cthey don\u2019t want to tap the anticipation notes markets because the high interest rates will make news,\u201d he adds.\u00a0<\/p>\n

\u201cThey are low on cash because they underestimated expenses to make an unbalanced budget look balanced.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Mayor Zohran Mamdani\u2019s socialist dream for New York City is facing a wake-up call \u2013 in the form…\n","protected":false},"author":2,"featured_media":271859,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[288,14927,57,9,56,63,65,64,11323,1211,2780,82],"class_list":["post-271858","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-business","tag-city-budget","tag-metro","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-on-the-money","tag-socialism","tag-taxes","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/271858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=271858"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/271858\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/271859"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=271858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=271858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=271858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}