Financial life in a big town

In a desperate attempt to fill a $70 million budget hole, Newark’s mayor is taking a chainsaw to the town’s budget — even going so far as to cut toilet paper from the 2010 budget.

"Every single contract that does not go to the core function of our city in providing safe streets, providing fire protection, or other things to keep our city afloat will now be cut," Mayor Cory Booker said during an emergency press conference Wednesday.

The reductions include not buying toilet paper for city offices, cutting the work week to four days for non-uniformed city workers, which is equivalent to a 20% pay cut, scrapping city holiday decorations, and closing city pools. These extreme measures, most of which will take effect beginning in August, are expected to save the city between $10 million and $15 million.

The city came to this impasse after the city council deferred a vote to create a Municipal Utilities Authority, a key component of Booker’s method of balancing the budget no fax cash advance. Because Newark could issue bonds on the Authority, it would have cash inflow to cover the immediate deficit. Without that infusion, the mayor said they can’t make ends meet.

While he accepts the council’s decision, Booker said that the move leaves Newark without a budget and "an incredible financial issue."

"If the council chooses to rely on a tax increase to fill this budget hole, our homeowners will receive an entire year’s worth of that tax increase in the fourth quarter — people will see tax bills into the thousands," Booker warned.

He added that raising property taxes will likely result in massive foreclosure rates, which is unacceptable.

Booker said he is making the severe cutbacks "to avoid a tax shock to our city." 

Source

Apply for our overnight online cash advance loans from $100 to $2500, deposited instantly in your bank account.

The cities of Sacramento and West Sacramento are examining whether one or more new Sacramento River crossings are needed to better connect the two communities, and want members of the public to weigh in on the matter.

A non-scientific survey was launched Monday as part of the Sacramento River Crossing Study: http://www.cityofsacramento.org/transportation/planning-policy/SacRiverCrossingsStudy.html. The online survey is available here.

The survey will accept one response per computer through June 24. Results will be released in mid-July.

“The nine-question survey will take just a few minutes to complete, but we believe it will yield a wealth of insight,” Sacramento city operations manager Fran Halbakken said in a news release. “For example, what kind of crossing is envisioned to address riverfront development on both sides of the river? Is the need best addressed by building one or more new facilities? Should a new structure be dedicated to public transit and bicycles/pedestrians or cars or all of the above modes? Where should it be located? That’s what we are exploring with the public low fee payday loans.”

The cities kicked off a joint feasibility study in April. It is intended to evaluate a number of alternatives from a “no build” option to multiple crossings and locations.

A final report is set to go to the city councils by the end of the year.

Source

If you would like to learn more about the convenience of pay day loans or how to apply for one, simply visit our site.

New York’s The Lung Cancer Research Foundation will donate $25,000 for studies at the Translational Genomics Research Institute as a result of its first Strides for Life event in Arizona.

The 3-mile run-walk and children’s dash are modeled after the foundation’s longstanding event in New York. Because of its success, the foundation already has scheduled a second annual Arizona fundraiser at the same site, Tempe Arts Park, for April 10, 2011.

Laurie Carson, founder and president of the foundation, said she is thrilled with the 175 participants.

Her foundation provides funding nationally for lung cancer research. Lung cancer is the leading cause of cancer death worldwide, killing 1.3 million people each year. The problem, she said, is there is no practical way to screen for lung cancer.

As a result, nearly 75 percent of patients are diagnosed with advanced-stage disease, leaving few options for treatment payday advances.

The National Cancer Institute estimates that nearly 220,000 new cases of lung cancer will be diagnosed this year in the U.S., where more than 159,000 people will die from the disease.

Michael Bassoff, president of TGen Foundation, said the $25,000 immediately will be applied to support TGen’s lung cancer research.

“The gift from LCRF will support scientific research in an area that affects more cancer patients than any other type of cancer,” he said.

This $25,000 award follows a $75,000 award that LCRF gave TGen last year to conduct scientific investigations.

For more: www.lungfund.org and www.tgen.org.

Source

After more than a year of rancorous debate, health-care reform has won passage in Congress.

The U.S. House of Representatives passed the Senate’s version of health-care reform Sunday night by a 219-212 margin, sending it to President Barack Obama for his signature. All Republicans voted against the bill, joined by 34 Democrats.

“This isn’t radical reform, but it is major reform,” Obama said shortly before midnight. “This is what change looks like.”

The president said the bill would create a health-care system “that works better for the American people.”

The legislation would enable an estimated 32 million Americans to obtain health insurance by expanding eligibility for Medicaid, as well as provide subsidies for low- and moderate-income individuals to buy private insurance.

Individuals and small businesses could purchase insurance through new state-based exchanges, which would offer plans that meet minimum federal standards. Some small businesses with low-wage workers would be eligible for temporary tax credits to help them pay for insurance.

Individuals would be required to obtain insurance, and businesses that employ more than 50 workers would have to provide coverage or pay a penalty of $2,000 per worker if any of their employees receives government-subsidized coverage on their own.

The legislation also would impose a tax on high-cost insurance plans beginning in 2018. New taxes also would be imposed on insurance plans, medical-device manufacturers and pharmaceutical companies. Individuals who make more than $200,000 would face additional Medicare payroll taxes.

Insurance companies would no longer be able to deny coverage for pre-existing conditions or rescind coverage when someone gets ill. They also would be prohibited from capping the amount of benefits individuals can receive.

Democrats say the law will make insurance coverage affordable to all Americans and rein in abusive insurance practices.

Republicans, however, contend insurance will become more expensive. They also argue that businesses will be afraid to hire workers because of the financial penalties they would face if they don’t provide affordable coverage.

In the end, however, it was the issue of abortion — not what the nation’s health-insurance system should look like — that determined the bill’s fate payday loans online.

The House passed health-care reform Sunday night at 10:49, but the outcome was determined nearly seven hours earlier. That’s when Democrat Bert Stupak of Michigan announced he and a handful of other anti-abortion Democrats would vote for the bill.

At issue was whether the bill would allow public funds be used to subsidize abortions. Stupak said an executive order from President Barack Obama would ensure that wouldn’t happen.

“I’m pleased to announce that we have an agreement,” Stupak said. “I’ve always supported health-care reform.”

The abortion issue was the most serious threat to House passage of the bill, and Republicans wouldn’t let the issue go away even after Stupak’s announcement.

“If you vote for this bill, you can never call yourself pro-life again,” said Rep. Paul Broun (R-Ga.).

Republicans also said Obama’s executive order couldn’t be relied on because it could be rescinded at any time.

They also called into question the Senate’s ability to pass a separate bill fixing the House’s problems with the Senate’s health-care legislation. To avoid the need to get 60 votes in the Senate, Democrats decided to have the House vote on the Senate-passed bill, and then approve a package of fixes through a budget-related process known as reconciliation, which only requires 51 votes to clear the Senate.

The problem, according to Republicans, is the reconciliation bill would generate additional contributions to the Social Security Trust Fund, and changes to Social Security aren’t eligible for consideration in a reconciliation bill. That means the Senate bill, might not be fixed, Republicans warned Democrats.

That argument didn’t sway any members. The House passed the reconciliation bill by a 220-211 margin.

Source

The U.S. economy will grow 4 percent this year, said Michael Darda, chief economist at MKM Partners in Greenwich, Connecticut, mirroring rebounds from recessions in the 1970s and 1980s.

Darda said growth will be ignited by the “initial spark” from a recovery in capital markets and corporate earnings, as well as the rebuilding of business inventories. The job market will recover more slowly, with the unemployment rate falling to about 9 percent by the end of this year from 10 percent in December, Darda said.

“If you look at the tone and tenor of indicators that tell us where the economy is going in the future, they’ve all improved fairly dramatically,” Darda said in an interview today on Bloomberg Radio.

The index of U.S. leading indicators increased more than anticipated in December, a sign the economy will keep growing through the first half of the year, the New York-based Conference Board said today. The board’s gauge of the outlook for the next three to six months rose 1.1 percent, the most in three months, after climbing 1 percent in November.

Darda’s outlook for the economy is more optimistic than the median forecast in this month’s Bloomberg survey of economists, which calls for growth of 2.7 percent in 2010 after a contraction of 2.5 percent last year.

A recovery from the deepest recession since the 1930s will do little to bring down an unemployment rate that’s close to a 26-year high, according to the survey fast cash now.

Labor Market Outlook

Unemployment is forecast to average 10 percent this year, the highest annual rate in seven decades. Employers have cut more than 7.2 million jobs since the recession began in December 2007.

“When you are coming out of such a deep, deep hole it takes time” for the labor market to heal, Darda said. “You could have a rip-roaring recovery and still not get unemployment to a level you would consider full employment.”

The Federal Reserve will probably keep its benchmark interest rate close to zero through the third quarter of the year in a bid to bring down unemployment. The rate-setting Federal Open Market Committee next meets Jan. 26-27.

The Fed’s regional economic survey, the Beige Book, reported the economy improved in 10 of the central bank’s 12 districts. The survey was released Jan. 13.

(In the U.S., hear Bloomberg Radio on satellite radio: Sirius Channel 130 and XM Channel 129. In New York City, tune to WBBR 1130 on the AM dial.)

Source

MONDAY

StatsCan: Releases November international security transactions.

TUESDAY

Bank of Canada: Interest rate announcement.

StatsCan: Releases leading indicators for December.

WEDNESDAY

StatsCan: Releases December consumer price index, November manufacturing sales, travel between Canada and other countries.

Earnings: Danier Leather reports second-quarter results.

THURSDAY

Earnings: MDS Inc. and Viterra report their fourth-quarter results.

StatsCan: Releases November wholesale trade figures.

FRIDAY

StatsCan: Releases November retail sales.

Source

A closely-watched manufacturing index blew away all expectations Monday, raising hopes that the U.S. economy is not just back on solid ground, but heading higher at a good clip.

Good news for the United States, to be sure, but connecting the dots to the Canadian economy is a bit more complicated.

"Anytime we see positive economic news out of the U.S., it’s a sign that our strongest trading partner is improving and we can expect to see knock-on effects on our own economy," said Meny Grauman, senior economist at CIBC World Markets.

"The direct links are not there but it’s definitely an encouraging sign in general that there is some support for Canadian economic recovery."

As usual, the loonie is throwing a wrench into the works. It rose by almost a full penny Monday alone, pulled along by higher prices for oil and other commodities. In its first day of 2010 trading, the Canadian dollar jumped 0.87 of a cent (U.S.) to 96.02 cents. The U.S. Institute for Supply Management’s index came in well ahead of economists’ expectations, rising to 55.9 in December, up from 53.6 in November. That’s also its highest level in almost three years. A reading above 50 indicates expansion. The bigger the difference, the faster the expansion.

"It’s huge," said Derek Holt, vice-president of economics with Scotia Capital.

"If the U.S. manufacturing sector really is stabilizing and recovering, then given the seamless cross-border integration of manufacturing production, it’s going to be a boon to Canada as well.

"The trillion-dollar question is: Is it believable?" Holt said.

The index first registered growth in August after 18 months of contraction, hitting a low of 32 high quality business cards.9 a year earlier.

One concern is the recovery may not be broad enough. Fewer industries reported growth in December than in the past couple of months, said Sal Guatieri, senior economist at BMO Capital Markets.

"It’s a glass half-full or half-empty scenario. Half the industries did report growth. We could take it as a positive or a negative."

But that doesn’t automatically mean the demand for Canadian products will be strong.

"It’s more positive if we see domestic spending strengthening in the U.S. That implies more demand for Canadian exports," Guatieri said.

"Consumer spending has turned modestly higher and the jury is still out on business investment. It picked up in the third quarter then weakened in the fourth."

Canada lacks a broad index to gauge the health of the manufacturing sector.

But economists have spotted signs of growth. In November, the monthly labour-force survey by Statistics Canada showed a small gain in manufacturing jobs.

Canadian manufacturers have been hamstrung by the rising dollar, which makes their products more expensive for U.S. customers.

"Economic fortunes may be rising, but a stronger Canadian dollar goes along with that and counteracts some of those positives. It makes the recovery in Canadian manufacturing more complicated," Grauman said.

"It will continue to be an issue over the next few months."

Source

After a 44-year run serving one of the poorer neighborhoods in St. Louis, Gateway Bank collapsed last month under a pile of bad loans.

Now, a small bank from Kansas City thinks it can build a profitable enterprise on the wreckage of Gateway. Central Bank of Kansas City bought Gateway from the Federal Deposit Insurance Corp., which took over the bank a month ago.

So, why would Central Bank think it can make a go of it in a north St. Louis city neighborhood where another bank failed?

A cheap price is part of the equation. Central Bank paid 70 cents for each $1 in face value of Gateway’s assets. Of course, many of those assets aren’t worth face value. When it failed, 7 percent of Gateway’s loans were seriously behind in payments. Central Bank will also inherit 70 foreclosed properties, most of them houses and apartment buildings.

The FDIC will pay $9.2 million to cover Gateway’s losses.

Central’s executives didn’t have long to mull the decision. The FDIC opened Gateway’s books to prospective bidders on a Thursday in late October. Central Bank made its bid the next Monday, and took over the bank that Friday, Nov. 6.

William Dana, Central Bank CEO, says it will succeed because it knows how to serve poor neighborhoods. That’s its forte in Kansas City, he says.

Most banks want to go where the money is. They want "high net worth, low transaction, low-touch customers," says Dana. They’re people who have big bank accounts, borrow much and deal with the bank by computer.

"Our customers are the antithesis of that," says Dana. They have lower credit scores and small bank accounts. "Many people have trouble coming up with the minimum deposit, $50, to open an account," said Dana. "It’s just tougher."

Serving them requires a bigger staff. But Central’s customers are more willing than the well-off to keep their money in checking and savings accounts paying low interest. That low cost of deposits allows the bank to make a wider profit margin on its loans, Dana said.

Serving low-income neighborhoods qualifies the bank to dole out federal largess under the federal New Markets Tax Credit program. It can give those credits to business borrowers who qualify.

"They work in these challenged neighborhoods where access to capital is limited or difficult," said Ruben Alonso, who runs the New Markets program for the Kansas City municipal government. He cites a loan the bank made to an engineering firm that is going to anchor a redevelopment planned for an area near downtown.

"They bring a lot of expertise in how to bring capital to low-income areas," he added.

The lack of banking services in poor, minority neighborhoods has been a vexing issue for federal regulators. In a study released last week, the FDIC reported that 21.7 percent of U.S. black households have no checking or savings accounts, while 19.3 percent of Hispanic households are "unbanked." Roughly 3.5 percent of Asian and white households have no checking or savings accounts.

The same study found the disparity is even greater in St. Louis: 31 percent of the area’s black households are unbanked, while only 1.1 percent of white, non-Hispanic households have no accounts.

St. Louis’ unbanked percentage among black households was the highest among 20 most populated metro areas studied by the FDIC, though seven areas didn’t report a breakdown for black households. Detroit was the second-highest at 30 percent, followed by Chicago’s 25.5 percent.

BIG BUSINESSES HELP

In Kansas City, Central Bank gets a helping hand from big businesses. A local electric utility and Microsoft deposit money at low interest to encourage Central’s lending. "We guarantee them that we’ll make loans into the community," said Dana.

Central’s strategy seems to be working. The bank earned $1.6 million in the first nine months of the year. That gave it a return on assets — a standard measure of bank profitability — of 1.26 percent, far above the 0.17 percent of peer banks. It’s been profitable for at least the last four years.

Central has $169 million in assets, ranking it as tiny by banking standards. Gateway had a mere $30 million.

Gateway Bank’s single branch is on Union Boulevard near Natural Bridge Road. Median income in the bank’s ZIP code was 58 percent of the national average, according to 2000 census figures. That matches the income around Central Bank’s headquarters, east of downtown Kansas City.

Central Bank’s neighborhood is a Kansas City melting pot — 50 percent white, 16 percent black, 7 percent Asian and 18 percent "some other race." The Census lists 30 percent as Hispanic, who can be of any race. By contrast, Gateway’s ZIP code is 98 percent black, according to the 2000 census.

Gateway was born in the civil rights movement. It was founded in 1965 by black businesspeople and professionals who wanted a bank to serve the minority population. For its last two decades, it was the only black-owned bank in St. Louis.

Central Bank’s ownership is white, the family of Lucille Tutera. Will that affect customer loyalty?

"We have to convince our depositors that our products and services will be better than before," said Dana.

Source

Dubai’s Nakheel asked for three of its listed Islamic bonds worth $5.25 billion to be suspended pending details of restructuring plans at its parent company, a move likely aimed at dampening speculation on the bonds.

The request briefly stalled but did not stop trading in the bonds, which are exchanged over the counter and not on the bourse, where the listing is regarded as a technicality.

The request also added to confusion that has reigned in the markets since the Dubai government last week said it would seek debt standstill agreements from creditors to Nakheel and Dubai World, briefly sparking fears of a renewed crisis.

“After the suspension announcement, it took some time on compliance to establish if they could trade, but as of 11:30 they started trading,” Mohieddine Kronfol at Dubai-based fund manager Algebra Capital said.

The three instruments listed on the exchange are a $3.5 billion sukuk due on December 14, a 3.6 billion dirham sukuk ($980.1 million) due on May 13 and a $750 million sukuk due on January 16, 2011.

Nakheel’s December bond was trading at 58 on Monday, according to Thomson Reuters data, having traded as high as 110 on Wednesday before the Dubai government’s announcement. Its 2011 debt was trading at 55.

“They are trying to minimize the huge amount of speculation going on until a definitive statement comes out,” said a Dubai-based fixed income banker.

Nakheel, developer of a series of created islands in the shape of palm trees off Dubai’s coast, said it had asked Nasdaq Dubai to suspend all three of its listed Islamic bonds, or sukuk, “until it is in a position to fully inform the market.”

Nakheel officials were not immediately available to give further details on the suspension.

Nakheel’s first bond, the $3.5 billion sukuk, was widely expected by the market to be repaid on time.

United Arab Emirate stocks tumbled 6 to 7 percent on Monday as the market reopened for the first time since Dubai called for the delay in debt repayments.

The UAE on Sunday offered the country’s banks emergency support and Abu Dhabi said it would provide selective support to Dubai companies.

($1=3.673 Uae Dirham)

(Reporting by John Irish and Jason Benham; editing by Kim Coghill, Thomas Atkins and Karen Foster)

Read more

Premier Wen Jiabao on Sunday restated China’s long-standing position that the yuan’s exchange rate should be kept at a reasonable, balanced level.

State television showed Wen meeting a trio of top economic officials from the euro zone, who were making the case for a strengthening of the Chinese currency.

Wen also said China wanted to see stability in the world’s major reserve currencies — a thinly veiled way of saying China is unhappy with the weakening trend of the dollar.

(Reporting by Zhou Xin and Alan Wheatley)

Read more