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The Wall Street Effect: A 'Severe Blow'

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"As Wall Street’s financial crisis deepened, real estate insiders on Monday predicted that Manhattan’s residential market could be dealt a severe blow. Investment brokers and their million-dollar year-end bonuses helped sustain apartment prices in the borough over the past few years, even as the rest of the country endured double-digit price declines. However, now that Lehman Brothers Holdings Inc. is headed for liquidation and Merrill Lynch & Co. has been sold to Bank of America Corp., much of that bonus money is uncertain ... 'Bonuses will be much smaller and the layoffs will continue,' said Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel Inc. 'The extent of this problem is mind-boggling.'" [Crain's]