Could a Zohran Mamdani victory spell financial ruin for banks in New York City? In a time when political grandstanding and economic uncertainty collide, acclaimed financial historian and veteran investment banker R. Christopher Whalen examines these threats and the role of inflation in his new column in National Mortgage News: “What Mamdani gets wrong about “affordable housing.”
Whalen notes that Mamdani is running on a platform to freeze rent for all NYC recently stabilized apartments, a recipe for disaster in a city where nothing is “affordable.” With the precarious state of New York's multifamily housing market, Whalen is predicting big trouble for regional banks in an earlier research note for his premium subscribers: “Zohran Mamdani's NYC Bank Dead Pool.”
“The obvious question is what is going to happen to the banks, the GSEs like Fannie Mae and Freddie Mac, and the U.S. Department of Housing and Urban Development (HUD), when Mamdani is elected Mayor? At a minimum, the valuations for all rental multifamily rental properties in New York City are likely to suffer. Banks will be even less willing to lend on these assets, especially with the Trump Administration cutting back on HUD programs,” Whalen observes inThe Institutional Risk Analyst.
The central thesis for Whalen's argument examines the role of inflation in eroding the affordability of housing, an issue detailed in Whalen's second edition ofInflated: Money, Debt, and the American Dream, available now in audiobook format. Originally published to critical acclaim, Inflated traces how America's reliance on credit-fueled growth has transformed its economy, housing market, and national psyche. At a time when inflationary pressures and the Federal Reserve's policy moves dominate the headlines, Inflated offers a powerful lens for financial institutions, policy professionals, and investors seeking to anticipate long-term market shifts.
“The new edition of Inflated brings Whalen's marvelously accessible history of American finance right down to the present day… ideas about the future will likely save readers some large multiple of the price of his book.” – James Grant, founder of Grant's Interest Rate Observer.
Examining the issues for NYC banks amid a Mamdani victory, Whalen states, “Mamdani is merely the logical progression in a century of socialist construction in Gotham going back to Robert Moses and Tammany Hall.” Whalen also warns that such dynamics could erode property values, chill lending, and inflame bank portfolios tied to multifamily assets. Inflated is a sweeping exploration of America's financial history and its enduring challenges with debt, credit markets, and central bank policy. “A lively, entertaining walk down the past, present and future of U.S. policy and its actual and potential inflation mistakes.” – Kathleen Hays, EIC of the Central Bank
With the release of the long-anticipated audiobook edition, Inflated is narrated with the same clarity and authority that has made Whalen one of Wall Street's most respected voices, the book also provides timely context for understanding the Federal Reserve's role in shaping today's volatile economic landscape. Whalen challenges financial professionals to reconsider assumptions about monetary policy, liquidity, and asset valuations.
Inflated: Money, Debt, and The American Dreamaudiobook is now available on Audible, Apple Books, Spotify and other major platforms.
R. Christopher Whalen is also the author of Financial Stability (2014), Ford Men (2017), and Seeing Around Corners (2024). Christopher publishes the newsletter Institutional Risk Analyst and appears in media outlets including CNBC, Yahoo Finance, Bloomberg and The Wall Street Journal. Inflated: Money, Debt, and the American Dream is available through major retailers, independent bookstores. More information is available at rcwhalen.com.
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SOURCE Whalen Global Advisors LLC
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