Even Zohran Mamdani’s detractors recognize that the climate is in favor of the 33 -year -old democratic socialist.
“It’s officially the hot communist summer,” said hedge Dan Loeb funds billionaire at X, after Mamdani surprises the democratic Estabishment by crushing Andrew Cuomo in the party’s primary for the New York City Hall.
It is a joke that hides deep anxiety among the city’s elite that a Mamdani victory in the general election in November would lead to higher taxes and a subsequent departure of rich residents of the five districts.
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Kathy Wylde, an influential New York figure who connects titans from the business, real estate and media with city leaders for decades, said that although Mamdani inspires young people, their ideological approach “landing contributors and employers.”
But enough votes in racial and economically diverse neighborhoods have embraced Mamdani.
In a speech on Wednesday morning, he reiterated that “a decent life should not be reserved for a few lucky.”
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“I can’t promise you’ll always agree with me,” said Mamdani. “But I will never hide from you.”
At the heart of his success was a campaign on social networks – populist economic proposals and progressive cultural ideas packed in attractive videos made to viral.
On Tuesday, he appeared in an Instagram video with Emily Ratajkowski, which has over 29 million followers on the platform. The model and actress wore a “Hot Girls for Zohran” T -shirt and encouraged voters to go to the polls.
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It was typical of the cunning and effort that helped Mamdani gather an army of tens of thousands of volunteers, who tirelessly knocked from door to door, stayed on corners and posted on social networks to exhort voters. They evangelized their policies: free day care, cheaper groceries in government stores, free bus, rent freezing and more – largely funded by rich tax increases.
Not mentioned: These tax increases would need the approval of New York State Governor Kathy Hochul, who said he was against the idea. Mamdani also wants to raise $ 70 billion in debt, another effort with little chance of success.
Still, in the wealthy runners of Manhattan, catastrophic forecasts are gaining strength. Wall Street Michael Nelson’s headhunter said the weather is dark among customers who usually earn more than $ 1 million a year.
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“This will be the end of New York City as we know it,” is how his wealthy customers are reacting to Mamdani’s perspective in November, he said.
The shares of companies linked to the New York real estate market are being affected. Flagstar Financial Inc., a creditor of apartment buildings, fell up to 6.7% on Wednesday before reducing the fall to 5%. Corporate owners Empire State Realty Trust, SL Green Realty and Vornado Realty Trust also fell.
Cuomo supporters
The city’s elite supported Cuomo, a member of the Old Democratic Guard that was considered a favorite in the race even in recent days. At 67, he was the oldest candidate and presented himself as an experienced moderate capable of managing New York’s problems – from the crime in the subway to the accessibility crisis recognized by all.
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Billionaires such as Michael R. Bloomberg, founder and largest shareholder of Bloombergbesides Bill Ackman, Loeb and Steven Roth from Vornado, supported their campaign. Cuomo’s PAC, Fix The City, raised nearly $ 25 million – an unprecedented amount in a mayor primary.
But many of the ads that supported him focused on painting Mamdani as a bad choice for the city, rather than presenting Cuomo’s own view for management.
The former New York governor, who resigned after a series of accusations of sexual harassment he denies, not only had money. Firm figures of the Democratic Estabishment, such as former President Bill Clinton, endorsed him.
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Mamdani, in turn, was supported by progressive stars such as congressman Alexandria Ocasio-Cortez and Senator Bernie Sanders.
There are signs that at least some in Wall Street may be warming up to the democratic socialist candidate.
“Although we can disagree in certain issues, we should always hope that Mamdani-if elected mayor-can unite the city to face critical needs in education, public safety, housing and economic development,” said Ralph Schlossstein, former Chief of Evercore Inc. and longtime democrat.
But so far this feeling is limited. Ackman, another longtime democrat before becoming one of President Donald Trump’s most vocal supporters, criticized Mamdani claiming that his policies would lead New York to bankruptcy.
The investor did not respond to a request for commentary on the results of the election.
Rich Farley, Wall Street’s veteran lawyer, said many of the city’s rich probably will see the November general election as a decisive moment. If Mamdani overcomes, “People who can easily leave and move elsewhere will seriously think about plans for it.”
Prior to this race, ultrachus donors need to decide whether and how they will oppose Mamdani. Cuomo, who has signaled that he can compete as independent, must convince his supporters that he is a more viable candidate outside the closed democratic system.
If he remains in the dispute, he will compete against the Republican candidate Curtis Sliwa and the current mayor Eric Adams, who also competes as independent and did not participate in the primary after a corruption scandal.
But others in Wall Street can choose a more radical option.
“I have talked to hedge-filed faces that told me they already have a foot off the door,” said Eric Rosen, a former JPMorgan senior radio and hedge background executive.
“I left New York 8 years ago because I didn’t like the way the city was being administered,” he said. “I sold my co-op at Park Ave. which now fell 25% and my house in Florida rose 250%. The market said.”
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