Friday, January 06, 2006

 

Deb's world: We're #2 . . . in bankruptcies!

More of evidence that "our economic policies have done the trick"? Sadly, no, Pollyanna.

From Friday's Thursday's Blade:
Marred by a weakened economy, Ohio finished as the runner-up in the national race for most bankruptcy filings last year. It was surpassed only by California, a state with three times as many people.

The Buckeye State logged about 135,140 new cases last year, compared with 164,860 for California, according to Lunquist Consulting Inc., a California firm that tracks bankruptcies.
The nation had 2.04 million cases. Michigan finished seventh highest, with 89,720 cases.

Experts have said that Ohio's struggling economy contributed to the relatively high number of filings. New cases in 21 counties in northwest Ohio that file at the U.S. Bankruptcy Court in Toledo totaled 16,883 last year, far eclipsing the prior year's record of 10,623.

. . .

Ohio, according to Lundquist, was trailed by Texas, 119,650 cases; New York, 108,400; and Florida, 106,500. Last was Alaska, at 2,280 cases. Nationally, filings were up about 500,000 from the prior year.
Ten months ago we had a post on the fact that bankruptcies were climbing faster in Ohio than in any other state, so this latest report shouldn't come as any shocker to normal people, unlike Congresswoman Pryce, who are trying their best to weather the volatility of Ohio's economy (we plan on posting more about this volatility in a few days).

And, this is probably not news to the National City Bank, a Cleveland-based bank that confirmed last month that it is taking a substantial hit to its bottom line from bankruptcies.
National City Corp. said Tuesday that the rush of personal bankruptcies will cost it at least $20 million to $30 million in the fourth quarter. That reflects losses just from auto, boat and recreational vehicle loans, and from home equity lines of credit. In addition, Cleveland-based National City has seen an increase in losses stemming from credit card balances that customers are saying they can't repay, Treasurer Thomas Richlovsky said.

. . .


National City, the nation's 10th-largest bank by deposits, has customers across the country, including a sizable chunk in Ohio. Bankruptcies in northern Ohio in October increased by more than 550 percent compared with October 2004. The number filed in October, 26,245, was more than half the number filed in all of 2004.

The U.S. Bankruptcy Court's northern region covers Cleveland, Akron, Canton, Youngstown and Toledo. The number of filings in the Cleveland office increased by 630 percent compared with the number last October.
We must say that we are growing concerned about the ODP's failure, so far, to develop a sustained narrative about how the Republicans in both the Statehouse and congress have ignored the economic difficulties of average Ohioans and instead have focused on giving businesses the deregulation and tax reforms that their lobbyists have written.

Calling new chairman Redfern - don't blow your honeymoon!

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