Thursday, November 6, 2008

Economic Crisis Brings Us All Together

Suddenly, Japan feels some of Michigan's pain.

The Wall Street Journal reports:
"In Nagoya, a nearby city that is also largely dependent on Toyota, there's been a fivefold increase in distressed businesses seeking emergency government loans to stay afloat, according to a new report by the local chamber of commerce. Sales at major department stores in Nagoya dropped 8.7 percent in September, the largest decline among 10 major cities in Japan, the report said.

"The Aichi Prefectural government, which depends on Toyota for about one-quarter of corporate-tax revenue, is projecting a 100 billion yen ($1.05 billion) shortfall in tax revenue, its first in 15 years.

"Toyota City businesses that rely on a healthy auto industry are feeling the pinch. 'Everyone is concerned,' said Yoshiyuki Takahashi, 51 years old, manager of ERA Realty in Toyota City. Property sales are down and vacancies are rising in weekly apartments for temporary workers as Toyota and its suppliers scale back."

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