New York City's $12 billion budget shortfall is raising alarm bells in financial circles. The scale of the deficit has drawn stark parallels to the 2008 financial crisis, reigniting debate about how governments should respond to fiscal stress. Some policymakers are doubling down on wealth taxation as a potential solution to bridge the gap. The comparison itself tells a story—major fiscal crises tend to reshape asset allocation strategies and ripple through markets. For investors tracking macroeconomic headwinds, NYC's fiscal challenge mirrors broader pressures facing major economies.