Treasury’s Bessent warns NYC: No bailout under Mamdani – ‘drop dead’

Core Viewpoint - Treasury Secretary Scott Bessent warns that if Zohran Mamdani implements his socialist economic plans as mayor, New York City will require a federal bailout, which he will not provide [1][4]. Group 1: Economic Implications - Bessent emphasizes that New York City will come to the federal government for a bailout if Mamdani's policies are enacted [1]. - He predicts that the implementation of Mamdani's plans could lead to a loss of the city's tax base, as high earners and businesses may leave [6]. - Bessent notes a significant transfer of wealth from Manhattan County to Palm Beach County over the past five years, indicating a trend of economic flight [6]. Group 2: Criticism of Mamdani's Policies - Mamdani's proposals, which include free buses, city-owned grocery stores, and rent freezes, have raised concerns among Wall Street executives [7]. - Bessent describes Mamdani's financial plan as potentially destructive to jobs and a catalyst for businesses and wealthy taxpayers to exit New York [10]. - The sentiment against Mamdani's agenda is echoed by billionaire hedge fund manager Bill Ackman, who has pledged to support a rival candidate [8].