The good news is, the real estate market in Manhattan will pick up. More luxury condominions will sell in the half-empty skyscrapers built at the top of the market bubbble.
The bad news is that it's because of the huge bonuses doled out by GS, MS, Citigroup, BofA and JP Morgan Chase thanks to government direct loans and loss guarantees.
The Treasury and Fed never set up loan facilities (TALF, PIP, FDIC) for non-commercial banks before. It's questionable as to whether they even had the authority to do so.