As a longtime New Yorker, I concluded that two strips of that magnificent city were sentenced to spend eternity in the bottom of the barrel: 42nd Street and Harlem. Both regions were familiar to N
ew Yorkers as impoverished, littered and often violent. Both neighborhoods sat on the bench while long periods of prosperity moved other parts of the city as little as two blocks away to new highs. While they languished, their businesses and residents limped along. As urban ghettoes go, they were not changeable. Barely manageable.
More than the rise in housing values should get credit, of course; much recognition is due to the magnificent leadership of Mayors Ed Koch, Rudy Guiliani and Mike Bloomberg. But while their leadership was unequivocably a major factor, without the liquidity, securitization and rising property values, this would not have been. Next time you are strolling down 42nd Street and Broadway, or seeking out the gentrified village that is now Harlem, remember to also thank the mortgage-backed industry for its role in fixing the unfixable.
Jeffrey M. Cunningham is a frequent speaker and writer on governance topics and the boardroom. He is chairman, CEO and editorial director of Directorship and has served on 10 public company boards in all capacities, including as chairman of four.