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This is the first true crisis of his administration. He didn't have to deal with 9/11, and the Ground Zero mosque non-issue was relatively easy to finesse. He wants to make sure that people still DO come to NYC, it really does help the economy. But if the protests are ever considered a threat to ordinary people looking to visit, he knows that's bad, very bad. All it takes is somebody's Aunt Millie who couldn't get into a Broadway show on her vacation, and everybody in Millie's town is going to think twice before taking a pleasure trip to the Big Apple.
Also, he knows how trigger-happy his cops are. Clearly, many of the commanders and senior people were rookies when the Vietnam antiwar protests were going on, and they've rehearsed in their minds a million times "how they would have done it better". Add to that some hotshots whose only knowledge of that time are from history books, and their delusions of grandeur, and you have the ingredients for a really nasty situation, like Chicago 1968. If that happens, bye-bye tourism.
Consider the fact that Bloomie is indeed one of the 1%, and he knows that he MUST have the tax revenue that the other one percenters supply to the city. If major financial corporations move out of the area, he's lost that. He's up on a tightwire, trying to piss off everybody a little so he doesn't push anybody past their breaking point.
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