Economy
Scrushy Trial Update
Former HealthSouth CEO Richard Scrushy was back on the witness stand Thursday for a second day of testimony in a lawsuit over a long-running fraud at the company. WBHM's Andrew Yeager spoke with WBHM's Bradley George about Scrushy's testimony.
Brunos Fallout: the Glenwood Pecans
The poor economy has dealt a serious blow to some Alabama nonprofit organizations. One group that serves children with autism and severe emotional disabilities is feeling the pain even more, thanks to the bankruptcy of Brunos supermarket.
US Steel: Fairfield Fallout
German steel giant ThyssenKrupp announced Tuesday it may delay opening its massive steel plant under construction near Mobile. The $4.5 billion plant is currently scheduled to open for next spring. But ThyssenKrupp says its hemorrhaging money - more than one billion dollars this year - so the plant may have to wait. This comes after U.S. Steel announced it would indefinitely idle steelmaking operations at its plant in Fairfield, putting 1,700 jobs in limbo. WBHM's Andrew Yeager attended a town hall meeting Tuesday and spoke to a number of workers who are anxious and confused, but optimism as well.
Wilcox County Unemployment
When the economy turned sour, people started making comparisons to the Great Depression. But experts quickly noted it wasn't anything like the 1930's, when unemployment soared to 25%. But for one Alabama community, unemployment is that high. WBHM's Tanya Ott takes us to Wilcox County, where one in four people who want to work can't find a job.
RealtySouth Lawsuit
Alabama real estate professionals are scrambling this week, after a major court ruling against Birmingham-based RealtySouth. As WBHM's Tanya Ott reports, the lawsuit could affect 30,000 Alabamians and cost the company tens of millions of dollars.
Grocery Auction
Need another sign of the times? Head on down to Calera to the Cadle Auction House, where you might find more toilet paper and laundry soap than Waterford crystal and speed boats. WBHM's Tanya Ott reports.
The Economy & Nonprofits: A Conversation with Tim Delaney
Nonprofit organizations ranging from health care groups to after-school programs are hurting right now. Corporate and individual donations are down. Foundations are tightening their belts, and state and local governments are taking drastic cost cutting measures as well. All of this adds up to the very real possibility that thousands of nonprofit organizations may have to shut down.
Making Do: Vanishing Pages
So you're tired of all the grim economic news. You want to relax, sit on the couch and flip through a good magazine. Only trouble is that favorite magazine may not be there any more. Magazines across the country have folded in recent months, including titles in Birmingham. As we conclude our series "Making Do: Alabama's Economy," WBHM's Andrew Yeager takes a look at an industry not just reeling from the recession, but dealing with a change in the medium itself.
Making Do: The McCoys’ Housing Dilemma
The economy continues to weaken and Moody's credit rating company reports nearly 10 million homeowners are having trouble making their mortgage payments. People who track the housing industry say another wave of foreclosures is on its way. All the while, some homeowners are treading water, trying to stay afloat. WBHM's Tanya Ott has one Hoover family's story.
On The Line: Making Do
The economy continues to dominates news headlines. Ten million homeowners are having trouble making their mortgage payments. People who track the housing industry say another wave of foreclosures is on its way. Alabama's bankruptcy rate is among the highest in the country. Gas prices have stabilized, but high food prices continue to strain family budgets. Tonight at 6:30 on WBHM we discuss all this and more during On The Line: Making Do .
Regions: Managing the Message
A recent headline in Newsweek magazine pretty much says it all when it comes to the current financial crisis - "No One Wants to Hug a Banker." Critics of Birmingham-based Regions Bank got two pieces of ammunition last week. The company announced executive compensation for 2008 and while CEO Dowd Ritter turned down a $1.1 million bonus, his total compensation still rose more than $2 million. Two days later, Regions announced it was suspending matching contributions for its employees' 401(k)s. Not exactly positive news in today's economic climate. WBHM's Andrew Yeager reports.
Magic City Marketplace
The Birmingham marketplace is connected by people who have to grapple with numbers and projections and spin. We try and slice through the psychobabble that can be business news with our occasional segment featuring the editor of the Birmingham Business Journal.
Birmingham Economic Summit
Unemployment is up, housing values are down, and the economy likely may be in recession. It's quite a backdrop for the Birmingham Economic Summit - a three-day event beginning Tuesday. Birmingham City Councilman Steven Hoyt and summit planner Michael Bell sat down with WBHM's Tanya Ott to talk about the challenges facing the local economy.
Stock Market Perspective
If there's a singular image of the American economy in action, it's perhaps the frenzied floor of the New York Stock Exchange. The opening bell rings, traders shout and stock prices rise and fall. It's familiar territory for William Johnston. Johnston is the former head of the exchange. He spoke at Samford University Thursday. As Johnston finished his tenure at the exchange in late 2001, the financial world was rocked by accounting scandals at Enron and Worldcom. WBHM's Andrew Yeager asked if there are any similarities between that market turmoil and what we're seeing today.
HealthSouth CEO Advises on Tough Economy
There's been a lot of bad economic news lately, with turmoil in the banking and housing sectors and wild fluctuations on Wall Street. HealthSouth President and CEO Jay Grinney says his company's "near death experience" holds lessons for other businesses in the current economy.
Alabama Economy: Homeless
A sputtering economy, skyrocketing food and gas prices and the mortgage mess are forcing more Alabama families from their homes. More than 800 houses in Alabama are in some state of foreclosure. That's a big jump from last year. Most displaced homeowners find somewhere else to live, but some end up homeless. And as Les Lovoy reports, Birmingham's homeless shelters are struggling to keep up with demand.
Alabama Economy: Downtown Housing
Real estate isn't what it used to be. Home values are dropping. Mortgages are harder to get. And more people are foreclosing. The massive slowdown has hit all sectors of the economy and all places of American life. One area that had been on an upswing is downtown Birmingham, which once boasted a booming condo and loft business. Today, it's getting harder to sell those units, as WBHM's Steve Chiotakis reports as part of our series The Alabama Economy.
Alabama Economy: Regions Bank
This September is a month economists will remember like it or not. Fannie Mae, Freddie Mac, Lehman Brothers, Washington Mutual, Wachovia - it seems financial giant after giant just kept falling. Then yesterday, Birmingham-based Regions' stock plunged more than 40%. So what does this mean for our corner of the banking system? As we continue our series on the Alabama Economy, WBHM's Andrew Yeager looks at how Regions Bank is weathering the storm.
On The Line: The Alabama Economy
The economy again dominates news headlines this week. Nationally, Congress will vote on a massive bailout plan, and locally the Jefferson County Commission grapples with missing another bond payment deadline and filing for possible bankruptcy. The strain trickles down to a very personal level with high gas and food prices hitting everyone in the wallet and the mortgage meltdown leaving some people homeless. Tonight at 6:30 on WBHM we discuss all this and more during On The Line: The Alabama Economy.
Wilcox County’s Pain at the Pump
We're all feeling the pinch from gas hovering around $4 a gallon these days, but in Alabama's poorest counties the situation is getting dire. The latest nationwide Pain at the Pump Index' finds that just south of Selma, in Wilcox County, residents are spending nearly 16% of their monthly income on fuel. That's the highest percent in the country. We sent WBHM's Tanya Ott down to find out why.
Banking Woes
It's been a sour housing market of late with rising mortgage defaults and consumer debt. And big banks have been feeling the hurt too. Birmingham's Regions Financial reported second quarter profits are down by more than 50% and cut their dividends by an even higher percentage. Charlotte, N.C.-based Wachovia had losses approaching $9 billion and is cutting more than 6,300 jobs nationwide, including some jobs in Alabama.
Volkswagen Goes to Tennessee
Alabama economic develop officials are understandably glum after news Volkswagen is driving past Alabama as a location for its new U.S. assembly plant. A site in Limestone County had been in the running. But the German automaker announced Tuesday Chattanooga, Tennessee, will get the $1 billion plant and the estimated 2,000 jobs that come with it. It's a rare miss for the state which already has investment from foreign car manufacturers Mercedes-Benz, Hyundai, Toyota and Honda. WBHM's Andrew Yeager spoke with Neil Wade, the head of Alabama's Development Office, to gauge his reaction to the announcement.
Realty Check
Playing the numbers game is common when buying or selling a home - but there's one number that can't be avoided when looking at the real estate market.
Alabama Adventure sold
The theme park Alabama Adventure has been sold. Southland Entertainment, which bought the park five years ago for a fraction of what it cost to build, sold the acreage that includes the park, but not adjoining property that it hopes to develop.
Construction Merger
Construction giant KBR, formerly known as Kellogg Brown and Root, announced today plans to buy Birmingham-based BE&K. The $550 million dollar deal would match the largest contractor for the US Army with one of Birmingham's largest companies. This announcement is just one of recent mergers to affect the Birmingham area. WBHM's Colin Quarello spoke with Professor Larry Harper from Samford University about what the deal means for Birmingham.
College Fight Songs
It's March Madness and, as always, there were a couple of "givens" in the lead-up to this weekend's Final Four. There have been blowouts and upsets. And, if you if you've watched enough games, you've probably been humming fight songs non-stop. But it's not all just team spirit and nostalgia. There are a lot of people making money off university and college fight songs, as WBHM's Tanya Ott reports.
Parliament House checks out
The Parliament House hotel is history. Literally. It was built with fanfare in the 1960s, financed partly by actress Doris Day, patronized by President Richard Nixon, Governor George Wallace and Coach Bear Bryant. But it was a place that never seemed to take off for everyone else. Different owners tried different things. WBHM's Steve Chiotakis remembers the hotel, his family's part in it and an early morning wake-up call to watch it come to an end.
Wheat Prices Soar
Wheat prices have doubled this year, hitting an all-time record. That's bad news for consumers who are paying more for food. But it's good news for farmers who are scrambling to cash in on the demand created by a global wheat shortage. WBHM's Tanya Ott reports.
SFS: Black on Black
All this week, WBHM has explored how crime affects the community, whether suburban or central city. While crime knows no race or neighborhood, some areas have more of it. In those places where poverty depletes the community of hope and where gangs run rampant, crime takes hold. Many of those neighborhoods are inner-city and predominantly black, leading to the term 'black-on-black crime.' But critics say categorizing crime by race further detaches it from the mainstream consciousness. That it makes it someone else's problem - other peoples' trouble. Some say it is a community and economic problem that warrants everyone's attention. WBHM's Steve Chiotakis wraps up our series.
Searching for Safetown: Crime Stats & Economic Development
Many criminologists believe 'Most Dangerous City' lists are misleading. Still, these rankings can negatively affect economic development. People from the suburbs are squeamish about coming to events downtown. Businesses question plans to expand. can they get employees to work in areas pegged as crime ridden? can they convince customers to shop there?
On The Line: The Urban Divide
The city of Birmingham faces many challenges, from a shrinking population to struggling schools to a lack of affordable housing. But there are opportunities as well, including a growing downtown loft movement and a thriving arts community. Join us for a discussion about the city's future, as WBHM's Steve Chiotakis and a panel of guests take questions and comments from listeners. This edition of On the Line will be broadcast Tuesday, September 4th from 6:30 - 8 p.m.
Urban Divide: Housing
In our Urban Divide series this week we've heard about how Birmingham is losing population, especially young professionals , and how the schools are bleeding students. More than a thousand students leave Birmingham city schools each year and that means fewer tax dollars for education. Ask anyone who follows these trends what's at the core of the problem and you'll likely hear "Housing". WBHM's Tanya Ott reports.
