Less Confident Than Crazy*

Mayor Bloomberg wants $45 million to retrain employees who are probably the least likely to trust government job training programs:

Just as Michigan is scrambling to retrain laid-off auto workers, New York City officials have come up with a plan to find new work for the unemployed from one of its core industries: financial services.

Under a program unveiled on Wednesday by Mayor Michael R. Bloomberg, the city wants to invest $45 million in government money to retrain investment bankers, traders and others who have lost jobs on Wall Street, as well as provide seed capital and office space for new businesses those laid-off bankers might create.

The plan is intended to stem a potential exodus of banking professionals from the city during the restructuring of the financial services industry, which has been the city’s economic engine for decades, and to speed the industry’s recovery, which will take at least several years, officials said.

. . .

The mayor announced the 11-part program at a building at 160 Varick Street that will house an incubator for start-up companies that might employ laid-off professionals. Trinity Real Estate donated the space for three years and the Polytechnic Institute of New York University will select the entrepreneurs who will occupy the space, beginning in April. A second business incubator is scheduled to open in Lower Manhattan later in the year, said Seth W. Pinsky, the president of the city’s Economic Development Corporation.

The agency plans to put $3 million into funds to make small investments in start-up companies, Mr. Pinsky said. He said that he hoped to attract twice as much money from private investors and that $9 million would be enough to help start hundreds of new businesses.

All told, city officials plan to spend about $15 million on the program, in addition to the $30 million of federal money. They estimate that over 10 years, it could stimulate the creation of at least 25,000 jobs and contribute $750 million to the local economy, but Mr. Bloomberg referred to those projections as a “guess.”

*And think of how many housing project roofs or elevators that could be fixed with $45 million . . .