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Tuesday 30 October 2012

Recession's legacy has food-bank usage soaring in Canada



Kathryn Adams, a Democrat all her 56 years, chokes for a moment as she speaks.

“Life is so much harder now for so many people than it was four years ago,” says Adams, a Methodist campus minister at Youngstown State University in Ohio, describing the struggling families she has served in soup kitchens and the declining collections at the local churches that support her work.

“Too many people are hurting, and it’s time for a change,” she said, in explaining why she plans to vote against Barack Obama, the man she backed for president in 2008.

Even as the darkest days of the recession have passed, times are still tough in Youngstown and surrounding industrial towns along the Mahoning River, a cradle of the steel industry in northeastern Ohio. Boarded-up homes and empty storefronts are common, and many families are stretching shrinking paychecks.

Ohio’s economy is doing better than most states in the U.S. Thus, Mitt Romney’s hopes of winning Ohio, which every successful Republican presidential candidate has done, depend on the uneven nature of a recovery that continues to hit hard some traditionally Democratic areas.

Fewer than a third of the 20,300 jobs that the Youngstown metropolitan area lost during the recession, which ended in June 2009, have been replaced, according to the Bureau of Labor Statistics. In Steubenville, a steel town along the Ohio River 60 miles to the south, unemployment in August was 10 percent.

‘Cleared the Way’
Other parts of Ohio are doing well, with the auto industry’s comeback following the Obama-backed government rescue and a state jobless rate that fell to 7 percent in August. Republican Governor John Kasich, a Romney ally, has celebrated Ohio’s progress.

“We just really kind of cleared the way for people to feel confident that they can invest here,” he said on NBC television’s “Meet the Press” on Oct. 28.

Even in the Mahoning Valley, the unemployment rate has plummeted from 13.3 percent in March 2010 to 7.9 percent in August, close to the national average, according to the BLS. Rarely during the decades-long decline of the region’s steel industry has Youngstown’s jobless rate come close to matching the national average.

Still, the recession and its aftermath struck a lasting blow to the region. Many workers have taken deep pay cuts. Average weekly earnings among private-sector workers in September were down 16 percent compared with five years earlier.

Giving Up
The improving unemployment rate masks the difficulty of finding a job, much less a good one. More people have left the labor force -- either because they moved out of the area or gave up looking for work -- than have found new jobs.

The number of suicide threats, and requests for food aid and utility assistance, climbed in the first nine months of this year from a year earlier at the regional Help Hotline Crisis Center. Christine Shehadi, an emergency room nurse at St. Elizabeth Health Center in Youngstown, said her department treats about two patients a week after suicide attempts, many of them men who have lost their jobs.

Though the region never experienced the run-up in real estate prices that other parts of the country did, more than 16.8 percent of homes in the metropolitan area were worth less than their mortgages as of June 30, according to CoreLogic, a real estate information company based in Santa Ana, California.

Steubenville Suffering
In Steubenville, the economy has shown fewer signs of life. Only about 800 of the 5,600 jobs lost in that metropolitan region since the December 2007 start of the recession had been regained as of September.

Four years ago, Obama barely won Steubenville’s Jefferson County, in the conservative Appalachian region of the state, carrying the county by just 76 votes out of more than 36,000 cast. The economic decline makes the county a greater challenge this year.

Youngstown’s Mahoning Valley is a durable stronghold of organized labor. Mahoning County and neighboring Trumbull County, with less than 4 percent of the state’s population, supplied more than 22 percent of Obama’s victory margin in Ohio four years ago.

The traditional Democratic route to victory in Ohio demands not just a win in northeast Ohio. It calls for a big win.

The travails of workers in the region, however, took a toll on the party’s vote in the 2010 midterm elections.

The combined Democratic victory margin in Mahoning and Trumbull counties in the governor’s race dwindled to 49,786 votes from 92,047 four years earlier and in the U.S. Senate race to 21,307 in 2010 from 80,403 four years earlier. Democrats won both offices in 2006 and lost both in 2010.




Spain recession drags on with no aid in view
Reuters
MADRID (Reuters) - Spain fell deeper into recession in the third quarter and prices rose sharply in October, piling pressure on the government to revive a paralyzed economy as it stalls over requesting aid. Prime Minister Mariano Rajoy is in no hurry ...
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BOJ eases policy as recession risk mounts
Reuters
... Bank of Japan expanded its asset purchases by 11 trillion yen ($138 billion) on Tuesday, easing monetary policy for the second straight month amid heightened pressure for bolder action to fight deflation and support an economy on the cusp of recession.
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Ohio Steel Towns Feeling Recession Fallout Waver on Obama
Businessweek
Even as the darkest days of the recession have passed, times are still tough in Youngstown and surrounding industrial towns along the Mahoning River, a cradle of the steel industry in northeastern Ohio. Boarded-up homes and empty storefronts are common ...
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Recession's legacy has food-bank usage soaring in Canada
Globe and Mail
A record number of Canadians visited a food bank this year, an indication therecession's legacy continues to bite. More than 882,000 people used a food bank this March, a 2.4-per-cent increase from last year. Demand is now 31-per-cent higher than...
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Globe and Mail
AP survey: Economic ills may defy next president
Boston.com
Europe's recession will persist deep into the next presidential term, according to a majority of the 31 economists who responded to the survey. A weaker European economy would shrink demand for U.S. exports and cost U.S. jobs. Yet there's little the ...
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Debt crisis: Spanish recession deepens - live
Telegraph.co.uk
Although Spain is struggling with recession, the country's prime minister has so far refrained from seeking the precautionary credit line from the eurozone that would trigger the bond-buying scheme and curb the country's borrowing costs. Mariano Rajoy ...
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Telegraph.co.uk
Mood of the Nation: Business owner spending less
San Jose Mercury News
People were asked about jobs, housing, gas prices, retirement and other issues. Among them was Hilda Mitrani, 51, of North Miami Beach, Fla. The Great Recession and slow economic recovery have devastated her public relations and marketing business.
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Recession Shakes Baby Boomer Retirement Confidence: AARP
Millionaire Corner
As baby boomers approach their retirement years, many find themselves, to quote the Bob Seger lyric, running against the wind. Post-recession financial insecurity is forcing many to rethink their retirement plans, according to a recent AARP report ...
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Spanish Recession Deepens
Action Forex
Spanish recession deepened as GDP Q3 y/y data printed at -1.6% from -1.3% prior read (q/q -0.3 vs. -0.4% prior read). While in Germany, unemployment claims rose 20k, taking the unemployment rate to 6.9%. The slightly positive news came from the Italian ...
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Nitin Gadkari cancels HP campaign; state BJP wants him to stay away?



Bharatiya Janata Party (BJP) President Nitin Gadkari's dubious business dealings are taking their political toll. The BJP President has had to cancel campaigning in Himachal Pradesh amidst reports that the state unit doesn't want him there.

With reports that his tour to poll bound Himanchal may affect party's prospects in the state, as some state leaders expressed apprehensions, Gadkari cancelled his two rallies at Solan and Bilaspur. But party leaders are giving a completely different spin to the story.




IT probes alleged shell companies in Gadkari's Purti
IBNLive
New Delhi: The Income Tax department on Tuesday conducted inquiries at 12 places in Mumbai where firms, which had invested in BJP president Nitin Gadkari's company, had given their addresses. I-T authorities also began probe into shell companies in ...
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IBNLive
Nitin Gadkari cancels HP campaign; state BJP wants him to stay away?
IBNLive
Bharatiya Janata Party (BJP) President Nitin Gadkari's dubious business dealings are taking their political toll. The BJP President has had to cancel campaigning in Himachal Pradesh amidst reports that the state unit doesn't want him there. With ...
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Nitin Gadkari to address cane farmers' rally in UP
Times of India
LUCKNOW: Attack of team Kejirwal and media reports alleging his company of wrongdoing notwithstanding and his second stint as national Bharatiya Janata Party chief in a limbo, Nitin Gadkari along with his predecessor former chief minister Rajnath Singh ...
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Nitin Gadkari blames Manikrao Thakre for deceiving sugarcane growers
Times of India
Denying any business links with Nationalist Congress Party (NCP) supremo Sharad Pawar and Rajya Sabha MP Ajay Sancheti who is also facing heat in the coal allocation scam, Gadkari tried to distance himself from them. Justifying his involvement in the ...
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RSS functionaries linked with Nitin Gadkari's firm
IBNLive
The Bharatiya Janata Party (BJP) and the Rashtriya Swayamsevak Sangh (RSS) have firmly backedNitin Gadkari over corruption allegations against him. However, a CNN-IBN investigation has now revealed links between Gadkari's firm Purti and numerous ...
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Karnataka BJP leaders to meet Nitin Gadkari to retain Yeddyurappa
Daily News & Analysis
With BJP high command itself befuddled with corruption chargesagainst party national presidentNitin Gadkari, the party's Karnataka unit leaders are heading to Delhi for crucial talks as part of their last ditch efforts to retain former chief minister ...
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BJP mouthpiece alleges 'dubious' foreign funding of Kejriwal's IAC
The Hindu
Arvind Kejriwal's Indian Against Corruption (IAC) has “dubious” foreign funding and his allegations against BJP President Nitin Gadkari were at the behest of his “masters”, party mouthpiece 'Kamal Sandesh' has alleged, a charge rejected by the social ...
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The Hindu
Media out to defame me, says Gadkari
The Hindu
Bharatiya Janata Party (BJP) president Nitin Gadkari on Monday said reports about his company Purti Limited were baseless and said that there was a “conspiracy to defame him” in the media. “I have evidence that a media group has routed black money...
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The Hindu
Corruption charges are Congress conspiracy: Nitin Gadkari
Daily News & Analysis
BJP president Nitin Gadkari on Monday termed the corruption charges levelled against him "a conspiracy by the Congress" and also blamed the media for acting as that party's "agents". Gadkari, who arrived here Monday and was accorded a warm welcome ...
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Daily News & Analysis
Gadkari not to campaign in Himachal Pradesh today
Zee News
Gadkari not to campaign in Himachal Pradesh today Zeenews Bureau Nagpur: Battling serious allegations of corporate fraud, BJP president Nitin Gadkari has cancelled his visit to poll-bound Himachal Pradesh scheduled on Tuesday. As per reports, the BJP ...
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Indian Overseas Bank (IOB), which has exposure of Rs 120 crore to cash-strapped Kingfisher Airlines Ltd, non-performing asset (NPA)




Chennai-based public sector lender Indian Overseas Bank (IOB), which has exposure of Rs 120 crore to cash-strapped Kingfisher Airlines, on Monday said the account might become a non-performing asset (NPA) for the bank this quarter. Most lenders to the airline have already classified the account as an NPA.


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A senior bank official said if the account turned into an NPA, the bank would have to provision 15-25 per cent of the amount (Rs 120 crore) this quarter. The bank’s exposure to Kingfisher is in the form of working capital finance. Currently, the lender considers the airline’s account a standard asset, though payments are due.


With exposure of Rs 1,500 crore, State Bank of India is the leader of the 17-bank consortium of lenders to Kingfisher Airlines.
As of September 30, IOB’s gross NPAs stood at Rs 5,930 crore, against Rs 3,898 crore a year earlier. Net NPAs stood at Rs 3,378 crore, compared with Rs 1,505 crore a year ago. Chairman and Managing Director M Narendra said the bank would now focus on recovery. He added in the quarter ended September, domestic fresh slippages stood at Rs 1,600 crore, while international ones stood at Rs 200 crore.

Two years earlier, loans to Kingfisher Airlines were restructured under industry dispensation. However, the airline began to default on payments and in the third and fourth quarters of the previous financial year, these loans turned into NPAs in the books of most of its lenders. As part of a restructuring package, part of the debt (about Rs 750 crore) was converted into equity. In March 2011, Kingfisher issued about 116 million shares (of Rs 10 each) at a price of about Rs 64 per equity share. These had a lock-in period of a year.















However, the airline stock plunged, owing to which banks had to make provisions. On Monday, the Kingfisher Airlines stock closed at Rs 11.75 on the BSE, a rise of 3.07 per cent.














India's Ailing Kingfisher Airlines Ask To Leave Airports
Forbes
India's once mighty Kingfisher Airlines is now politely being asked to leave at least two airports in the country due to its inability to pay dues. Kingfisher, owned by Forbes ranked billionaire Vijay Mallya, is being kicked out of two hangars in ...
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IOB's Rs 120-cr loan to Kingfisher may turn into NPA
Business Standard
Chennai-based public sector lender Indian Overseas Bank (IOB), which has exposure of Rs 120 crore to cash-strapped Kingfisher Airlines, on Monday said the account might become a non-performing asset (NPA) for the bank this quarter. Most lenders to the ...
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Kingfisher Bids To Return to the Air
Aviation International News
Striking pilots and engineers of India's Kingfisher Airlines have accepted a three-month portion of their eight months of unpaid salaries and agreed to return to work, even as management struggles to get its suspended Scheduled Operator's Permit ...
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Aviation International News
The Ruby Suns – “Kingfisher Call Me”
Stereogum
Before recording the Ruby Suns' fourth album, Christopher, the band's primary member, Ryan McPhun, split up with his longtime girlfriend and bandmate, and relocated from New Zealand to Oslo, Norway — two life changes that presumably had an effect on ...
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TWTW: Cyrus takes on Kingfisher Airlines
IBNLive
TWTW: Cyrus takes on Kingfisher Airlines. ibnlive. Subscribe Subscribed Unsubscribe. Loading... 17,911 videos. Loading... Alert icon. You need Adobe Flash Player to watch this video. Download it from Adobe. 119 views. Show video statistics. I like this ...
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Shares of two UB group companies tank
The Hindu
Shares of two UB group companies, on Monday, lost 9 per cent, a day after the group's Chairman Vijay Mallya said he would not divest stake in his profit-making businesses to revive loss makingKingfisher Airlines. Shares of United Spirits sank 17 per ...
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Kingfisher Air - Re-appointment of Company Secretary & Compliance Officer
Moneycontrol.com
Kingfisher Airlines Ltd has informed BSE that Mr. Bharath Raghavan has been re-appointed as the Company Secretary of the Company with effect from October 26, 2012. He will be the Compliance Officer in terms of Clause 47(a) of the Listing Agreement.
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