Evergrande’s Struggles Offer a Glimpse of China’s New Financial Future

HONG KONG — Xu Jiayin was China’s richest man, a symbol of the country’s economic rise who helped transform poverty-stricken villages into urbanized metropolises for the fledgling middle class. As his company, China Evergrande Group, became one of the country’s largest property developers, he amassed the trappings of the elite, with trips to Paris to taste rare French wines, a million-dollar yacht, private jets and access to some of the most powerful people in Beijing.

“All I have and all that Evergrande Group has achieved were endowed by the party, the state and the whole society,” Mr. Xu said in a 2018 speech thanking the Chinese Communist Party for his success.

China is threatening to take it all away.

The debt that powered the country’s breakneck growth for decades is now jeopardizing the economy — and the government is changing the rules. Beijing has signaled that it will no longer tolerate the strategy of borrowing to fuel business expansion that turned Mr. Xu and his company into a real estate powerhouse, pushing Evergrande to the precipice.

Last week, the company, which has unpaid bills totaling more than $300 billion, missed a key payment to foreign investors. That sent the world into a panic over whether China was facing its own so-called Lehman moment, a reference to the 2008 collapse of the Lehman Brothers investment bank that led to the global financial crisis.

struggles have exposed the flaws of the Chinese financial system — unrestrained borrowing, expansion and corruption. The company’s crisis is testing the resolve of Chinese leaders’ efforts to reform as they chart a new course for the country’s economy.

If they save Evergrande, they risk sending a message that some companies are still too big to fail. If they don’t, as many as 1.6 million home buyers waiting for unfinished apartments and hundreds of small businesses, creditors and banks may lose their money.

“This is the beginning of the end of China’s growth model as we know it,” said Leland Miller, the chief executive officer of the consulting firm China Beige Book. “The term ‘paradigm shift’ is always overused, so people tend to ignore it. But that’s a good way of describing what’s happening right now.”

speech accepting an award for his charitable donations.

He went to college and then spent a decade working at a steel mill. He started Evergrande in 1996 in Shenzhen, a special economic zone where the Chinese leader Deng Xiaoping launched the country’s experiment with capitalism. As China urbanized, Evergrande expanded beyond Shenzhen, across the country.

Evergrande lured new home buyers by selling them on more than just the tiny apartment they would get in a huge complex with dozens of identical towers. New Evergrande customers were buying into the lifestyle associated with names like Cloud Lake Royal Garden and Riverside Mansion.

annual report was Wen Jiahong, the brother of China’s vice premier, Wen Jiabao, who oversaw the country’s banks as head of the Central Financial Work Commission.

elite group of political advisers known as the Chinese People’s Political Consultative Conference.

“He could not have gotten so big without the collaboration of the country’s biggest banks,” Victor Shih, a professor of political science at the University of California, San Diego, said of Mr. Xu. “That suggests the potential help of senior officials with a lot of influence.”

Mr. Xu was also a power broker who socialized with the Communist Party’s elite families, according to a memoir by Desmond Shum, a well-connected businessman. In his book, “Red Roulette,” published this month, Mr. Shum recounts a 2011 European wine-tasting and shopping spree in which Mr. Xu took part, along with the daughter of the Communist Party’s fourth-ranking official at the time, Jia Qinglin, and her investor husband.

The party flew to Europe on a private jet, with the men playing a popular Chinese card game called “fight the landlord.” At Pavillon Ledoyen, a Paris restaurant, the party spent more than $100,000 on a wine spree, downing magnums of Château Lafite wines, starting with a vintage 1900 and ending with a 1990. On a trip to the French Riviera, Mr. Xu considered buying a $100 million yacht owned by a Hong Kong mogul, Mr. Shum wrote.

To supercharge Evergrande’s growth, Mr. Xu often borrowed twice on each piece of land that he developed — first from the bank and then from home buyers who were sometimes willing to pay 100 percent of the value of their future home before it was built.

property grew to account for as much as one-third of China’s economic growth. Evergrande built more than a thousand developments in hundreds of cities and created more than 3.3 million jobs a year.

cool down, the damage caused by Evergrande’s voracious appetite for debt became impossible to ignore. There are nearly 800 unfinished Evergrande projects in more than 200 cities across China. Employees, contractors and home buyers have held protests to demand their money. Many fear they will become unwitting victims in China’s debt-reform campaign.

Yong Jushang, a contractor from Changsha in central China, still hasn’t been paid for the $460,000 of materials and work he provided for an Evergrande project that was completed in May. Desperate not to lose his workers and business partners, he threatened to block the roads around the development this month until the money was paid.

“It’s not a small amount for us,” Mr. Yong said. “This could bankrupt us.”

Mr. Yong and others like him are at the heart of regulators’ biggest challenge in dealing with Evergrande. If Beijing tries to make an example out of Evergrande by letting it collapse, the wealth of millions of people could vanish along with Mr. Xu’s empire.

protested on the streets and complained online about delays in construction. The central bank has put Evergrande on notice.

And China’s increasingly nationalistic commentators are calling for the company’s demise. Debt-saddled corporate giants like Evergrande were given the freedom to “open their bloody mouths and devour the wealth of our country and our people until they are too big to fall,” Li Guangman, a retired newspaper editor whose recent views have been given a platform by official state media, wrote in an essay.

Without proper intervention, Mr. Li argued, “China’s economy and society will be set on the crater of the volcano where all may be ignited any time.”

Michael Forsythe reported from New York. Matt Phillips contributed reporting from New York.

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How China Plans to Avert an Evergrande Financial Crisis

“The government can place them under watch and pressure them through their employers or relatives not to make trouble,” said Minxin Pei, a professor of government at Claremont McKenna College who is writing a study of China’s domestic security apparatus.

China has a lot riding on its ability to contain the fallout from an Evergrande collapse. After Xi Jinping, China’s most powerful leader in generations, began his second term in 2017, he identified reining in financial risk as one of the “great battles” for his administration. As he approaches a likely third term in power that would start next year, it could be politically damaging if his government were to mismanage Evergrande.

But China’s problem may be that it controls financial panics too well. Economists inside and outside the country argue that its safeguards have coddled Chinese investors, leaving them too willing to lend money to large companies with weak prospects for repaying it. Over the longer term, though, China’s bigger risk may be that it follows in the footsteps of Japan, which saw years of economic stagnation under the weight of huge debt and slow, unproductive companies.

By not forcefully signaling an Evergrande bailout, the Chinese government is essentially trying to force both investors and Chinese companies to stop channeling money to risky, heavily indebted companies. Yet that approach carries risks, especially if a disorderly collapse upsets China’s legions of home buyers or unnerves potential investors in the property market.

An abrupt default by Evergrande on a wide range of debts “would be a useful catalyst for market discipline, but could also sour both domestic and foreign investor sentiment,” said Eswar Prasad, an economics professor at Cornell University who is a former head of the China division at the International Monetary Fund.

Some global investors worry that Evergrande’s problems represent a “Lehman moment,” a reference to the 2008 collapse of the Lehman Brothers investment bank, which heralded the global financial crisis. Evergrande’s collapse, they warn, could expose other debt problems in China and hit foreign investors, who hold considerable amounts of Evergrande debt, and other property developers in the country.

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Global Markets Swoon as Worries Mount Over Superpowers’ Plans

Investors on three continents dumped stocks on Monday, fretting that the governments of the world’s two largest economies — China and the United States — would act in ways that could undercut the nascent global economic recovery.

The Chinese government’s reluctance to step in and save a highly indebted property developer just days before a big interest payment is due signaled to investors that Beijing might break with its longstanding policy of bailing out its homegrown stars.

And in the United States, the globe’s No. 1 economy, investors worried that the Federal Reserve would soon begin cutting back its huge purchases of government bonds, which had helped drive stocks to a series of record highs since the coronavirus pandemic hit.

The sell-off started in Asia and spread to Europe — where exporters to China were slammed — before landing in the United States, where stocks appeared to be heading for their worst performance of the year before a rally at the end of the trading day. The S&P 500 closed down 1.7 percent, its worst daily performance since mid-May, after being down as much as 2.9 percent in the afternoon.

to ignore a variety of issues complicating the recovery — including the emergence of the Delta variant and the supply chain snarls that have bedeviled consumers and manufacturers alike.

But beginning this month, as Evergrande began to teeter and the likelihood of the Fed’s scaling back — or tapering — its bond-buying programs grew, the market’s protective bubble began to deflate. Some U.S. investors are also concerned that tax increases are in the offing — including on share buybacks and corporate profits — to help pay for a spending push by the federal government, the signature piece of which is President Biden’s proposed $3.5 trillion budget bill. Separately, Congress also must act to raise the government’s borrowing limit, a politically charged process that has at times thrown markets for a loop.

On Monday, those currents combined, reflecting the interconnectedness of the global markets as investors everywhere sold their holdings.

the rancorous debate about increasing the debt limit was accompanied by a sharp market slump, as representatives in Washington appeared to flirt with the idea of not raising the constraint on borrowing, which would effectively amount to a default on Treasury bonds.

“It’s going to be drama for the sake of politics,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “People don’t like that.”

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In Panjshir, Few Signs of an Active Resistance, or Any Fight at All

PANJSHIR, Afghanistan — In this lush strip of land — walled off from potential invaders by high mountain peaks and narrow, ambush-prone passes — former mujahedeen fighters and Afghan commandos regrouped in the days after the Taliban toppled the Afghan government, vowing to fight to the last man. With its history of resistance and its reputation for impenetrability, the Panjshir Valley seemed an ideal place for a determined force of renegades to base an insurgency.

By Sept. 6, however, the Taliban claimed to have captured the entire province of Panjshir, a momentous victory in a region that repelled numerous Soviet offensives in the 1980s, and had remained beyond the Taliban’s control during its rule from 1996 to 2001.

their origin story and their record as rulers.

He said that Qari Qudratullah, the new provincial governor, was meeting with elders to discuss a peaceful handover.

A Taliban military commission official, Mullah Hafiz Osman, later confirmed this was true, while Mr. Nazary, the resistance spokesman, denied the claim.

Behind the Panjshiri fighters flew the green, white and black flag of the Northern Alliance, repurposed to signify the National Resistance Front, which is led by Ahmad Massoud, son of Ahmad Shad Massoud, the leader assassinated in 2001. But villagers said that the Taliban had long been active in the valley, and that their takeover had been negotiated by some of the residents.

Outside the tomb of the elder Massoud, a young Talib, far from his home in Helmand Province in the south, performed his evening prayers.

Days earlier, photos of the partially destroyed tomb, in a dramatic hilltop mausoleum overlooking the valley, appeared on social media alongside accusations that the Taliban had ransacked the place. “This wasn’t our work,” one of the Taliban guards said. “Civilians broke in and smashed the glass.”

The site had since been repaired by the Taliban and was now in its original state. A group of guards stood around the tomb, and as evening fell, they stretched a green shroud over it and closed the doors for the night.

Outside the valley, those who had fled wondered if they would ever be able to return.

When the Taliban first entered Panjshir, Sahar, 17, and her family barricaded themselves at home, thinking the resistance would eventually chase the Talibs away. But the fighting steadily drew closer.

Neighbors started to flee, said Sahar, whose last name is being withheld to protect her identity. Her uncle and cousin were stopped at a Taliban checkpoint near the village, she said, where they were beaten and ordered to turn over their weapons and the names of resistance fighters.

Last week, the family escaped through the mountains. They walked for five days, through remote valleys and over mountain ridges. Sahar fainted three times from dehydration, she said, and her mother had blisters and swollen feet. Her father, who is diabetic, nearly collapsed.

Eventually, they hitched a ride to Kabul, the country’s capital, where they had relatives with whom they are now living.

“We don’t know what will happen,” Sahar said by phone from Kabul. “We may never be able to get back.”

Farnaz Fassihi contributed reporting from New York, N.Y. Wali Arian contributed from Istanbul, Turkey.

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A Million Afghan Children Could Die in ‘Most Perilous Hour,’ U.N. Warns

Millions of Afghans could run out of food before the arrival of winter and one million children are at risk of starvation and death if their immediate needs are not met, top United Nations officials warned on Monday, putting the country’s plight into stark relief.

Secretary General António Guterres, speaking at a high-level U.N. conference in Geneva convened to address the crisis, said that since the Taliban takeover in Afghanistan last month, the nation’s poverty rate has soared and basic public services have neared collapse and, in the past year, hundreds of thousands of people have been made homeless after being forced to flee fighting.

“After decades of war, suffering and insecurity, they face perhaps their most perilous hour,” Mr. Guterres said, adding that one in three Afghans do not know where they will get their next meal.

The deepening humanitarian crisis tops a dizzying array of challenges confronting the new Taliban regime as it navigates governing a country propped up for decades by aid from international donors.

face potential collapse. At a local hospital in Chak-e Wardak, administrators have been unable to pay salaries or purchase new medicines with banks still closed, according to Faridullah, the facility’s resident doctor.

as drought enveloped the nation.

On Monday, in his first public remarks to Congress, Secretary of State Antony J. Blinken defended the Biden administration’s withdrawal from Afghanistan, saying there was no reason to believe the country would have stabilized had the United States remained.

“There’s no evidence that staying longer would have made the Afghan security forces or the Afghan government any more resilient or self-sustaining,” Mr. Blinken told the House Foreign Affairs Committee, in a live teleconference call. “If 20 years and hundreds of billions of dollars in support, equipment, and training did not suffice, why would another year, or five, or 10, make a difference?”

international aid workers having fled the country out of safety concerns. Those who remain are unsure if they will be able to continue their work.

During the conference on Monday, the U.N. said it needed $606 million in emergency funding to address the immediate crisis, while acknowledging that money alone will not be enough. The organization has pressed the Taliban to provide assurances that aid workers can go about their business safely. By the end of the gathering, international pledges had surpassed the amount requested.

But even as the Taliban sought to make that pledge, the U.N.’s human rights chief, Michelle Bachelet, also speaking in Geneva, said Afghanistan was in a “new and perilous phase” since the militant Islamist group seized power.

“In contradiction to assurances that the Taliban would uphold women’s rights, over the past three weeks, women have instead been progressively excluded from the public sphere,” she said, a warning that the Taliban would need to use more than words to demonstrate their commitment to aid workers’ safety.

Monday’s conference was also intended to drive home the enormousness of the crisis and offer some reassurance to Western governments hesitant to provide assistance that could legitimize the authority of a Taliban government that includes leaders identified by the U.N. as international terrorists with links to Al Qaeda.

their origin story and their record as rulers.

On Sunday, Taliban authorities sent assurances that they would facilitate humanitarian aid deliveries by road, he said.

some $12 billion in assistance to Afghanistan over four years.

While the Taliban did not have a representative in Geneva for the meeting, Zabihullah Mujahid, the Taliban’s deputy information and culture minister, said the government welcomed all humanitarian efforts by any nation, including the United States.

He also acknowledged that not even the Taliban expected to be in control of the country so quickly.

“It was a surprise for us how the former administration abandoned the government,” he said. “We were not fully prepared for that and are still trying to figure things out to manage the crisis and try to help people in any way possible.”

More than half a million Afghans were driven from their homes by fighting and insecurity this year, bringing the total number of people displaced within the country to 3.5 million, Filippo Grandi, the U.N. refugee chief said.

The danger of economic collapse raised the possibility of stoking an outflow of refugees to neighboring countries.

Said, 33, lived in Kunduz before fleeing to Kabul, where he now lives in a tent in a park. He has been there with his wife and three children for a month.

“It’s cold here, we have no food, no shelter, and we can’t find a job in this city,” he said, adding that he had not received any aid. “We all have children and they need food and shelter, and it’s not easy to live here.”

Jim Huylebroek contributed reporting from Chak-e Wardak, Afghanistan. Sami Sahak also contributed reporting.

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72-Unit Affordable Community in Brawley Sold for $5,050,000 by The Mogharebi Group

BRAWLEY, Calif.–(BUSINESS WIRE)–The Mogharebi Group, (“TMG”) has completed the sale of Valle del Sol, a 72-unit affordable community located at 1605 C Street. The property was sold above the list price with multiple offers for $5,050,000. Otto Ozen and Bryan LaBar represented the seller, Southern California based investor. The buyer was a private investor based out of Southern California.

“Valle del Sol is a newer build, 100% affordable housing community,” said Bryan LaBar, Senior Vice President of The Mogharebi Group. “As a result, there was a high level of interested buyers for this asset. However, it was our proprietary 1031 exchange platform that includes a robust network of private high net-worth and exchange buyers that ultimately drove the value and successfully closed.”

Built-in 2008, Valle del Sol is a 72-unit, affordable housing community. The property comprises seven residential buildings totaling 67,672 rentable square feet. The complex is situated on a 3.83-acre site. The apartment homes feature spacious one, two and three-bedroom floor plans with in-unit washer / dryer hook ups. The property boasts a clubhouse, playground, laundry facility and swimming pool.

About The Mogharebi Group (TMG): The Mogharebi Group is a brokerage firm specializing in the multifamily property sector throughout California. With unparallel local knowledge, an extensive global network of top real estate investors, state of the art technology, and direct access to capital, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.

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For France, American Vines Still Mean Sour Grapes

BEAUMONT, France — The vines were once demonized for causing madness and blindness, and had been banned decades ago. The French authorities, brandishing money and sanctions, nearly wiped them out.

But there they were. On a hillside off a winding mountain road in a lost corner of southern France, the forbidden crop was thriving. Early one recent evening, Hervé Garnier inspected his field with relief.

In a year when an April frost and disease have decimated France’s overall wine production, Mr. Garnier’s grapes — an American hybrid variety named jacquez, banned by the French government since 1934 — were already turning red. Barring an early-autumn cold snap, all was on track for a new vintage.

“There’s really no reason for its prohibition,” Mr. Garnier said. “Prohibited? I’d like to understand why, especially when you see the prohibition rests on nothing.”

Forgotten Fruits, a group fighting for the legalization of the American grapes. Showing off forbidden vines, including the clinton and isabelle varieties, on a property in the southern Cévennes region, near the town of Anduze, he added, “These vines are ideal for making natural wine.”

Memory of the Vine.” A membership fee of 10 euros, or about $12, yields a bottle.

With the growing threat of climate change and the backlash against the use of pesticides, Mr. Garnier is hoping that the forbidden grapes will be legalized and that France’s wine industry will open up to a new generation of hybrids — as Germany, Switzerland and other European nations already have.

“France is a great wine country,” he said. “To remain one, we have to open up. We can’t get stuck on what we already know.”

Léontine Gallois contributed reporting.

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Hurricane Ida News: Storm Could Be Among the Strongest to Hit Louisiana since the 1850s, Governor Warns

saying local officials expected “the possibility of flooding and even spinoff tornadoes in portions of Alabama.” In Mississippi, Gov. Tate Reeves also issued a state of emergency on Saturday, allowing for the use of state resources for response and recovery.

Research over the past decade has found that, on average, such rapid intensification of hurricanes is increasing, in part because the oceans, which provide the energy for hurricanes, are getting warmer as a result of human-caused emissions of greenhouse gases. But Ida will also strengthen quickly because the Gulf, as is usual at the end of the summer, is very warm.

The hurricane center defines rapid intensification as at least a 35-m.p.h. increase in sustained winds over 24 hours. In the extremely active 2020 season, Hurricane Laura intensified by 45 m.p.h. in the 24 hours before making landfall in Louisiana as a Category 4 storm in late August.

The National Hurricane Center said Ida was likely to produce heavy rainfall late Sunday into Monday from southeast Louisiana to coastal Mississippi and Alabama. Tropical storm force winds will arrive along the coast as early as Saturday night, according to the National Weather Service, before the storm makes landfall on Sunday afternoon or evening. After moving inland, the storm could contribute to flooding in Tennessee, where flash flooding killed 20 people last weekend.

“Based upon current track and strength of Ida, this storm will test our hurricane protection systems in a way they haven’t been tested before,” Chip Kline, executive assistant to the governor of Louisiana for coastal activities, said on Twitter. “It’s times like these that remind us of the importance of continuing to protect south Louisiana.”

Correction: 

Because of an editing error, an earlier version of this article misidentified the location of Tropical Storm Ida. It was in the Caribbean Sea early Friday, not the Gulf of Mexico.

Bella Witherspoon, left, and Sara Marriott prepare their boat ahead of the arrival of Hurricane Ida in Ocean Springs, on the Mississippi coast.
Credit…Hannah Ruhoff/The Sun Herald, via Associated Press

Hurricane Ida will produce “life-threatening” weather conditions in Louisiana and batter parts of Mississippi, the National Weather Service said, urging people to evacuate inland.

Here is a breakdown of how various parts of the region could be affected when the hurricane makes landfall on Sunday afternoon or evening , according to the Weather Service.

Baton Rouge, La.

River Parishes and Northshore in Louisiana

New Orleans

Coastal Louisiana

Southwest Mississippi

Coastal Mississippi

Jawan Williams shoveled sand for a sandbag held by his son Jayden Williams, before landfall of Hurricane Ida at the Frederick Sigur Civic Center in Chalmette, La., on Saturday.
Credit…Matthew Hinton/Associated Press

Hurricane Ida is expected to make landfall Sunday, threatening to bring dangerous wind, storm surge and rain to the Gulf Coast exactly 16 years after the arrival of Hurricane Katrina, one of the most costly natural disasters in American history, which left more than 1,800 dead and produced more than $100 billion in damages.

The overall impact of storm surge from Ida is predicted to be less severe than during Katrina. Because that storm began as a Category 5 hurricane in the Gulf of Mexico before weakening as it approached landfall, it generated enormous storm surge, which brought over 20 feet of water to parts of the Mississippi coast. Current projections put the storm surge of Ida at 10 to 15 feet.

“Fifteen-foot sure can do a lot of damage,” said Barry Keim, a professor at Louisiana State University and Louisiana State Climatologist. “But it’s going to be nothing in comparison with Katrina’s surge.”

Improvements to the levee system following Katrina have better prepared the New Orleans metro area for the storm surge.

However, the areas likely to receive the most severe surge from Ida may be less equipped to handle it than the area hit by Katrina, said Dr. Keim.

Ida is expected to make landfall to the west of where Katrina struck, bringing the most severe storm surge impacts to the Louisiana coast west of the Mississippi River rather than east of the river along coastal Mississippi, as Katrina did.

“We are testing a different part of the flood protection in and around southeast Louisiana than we did in Katrina,” said Dr. Keim. “Some of the weak links in this area maybe haven’t been quite as exposed.”

While the impacts of Ida’s storm surge are expected to be less severe than Katrina’s, Ida’s winds and rain are predicted to exceed those that pummeled the Gulf Coast in 2005.

Ida is expected to make landfall on the Gulf Coast as a Category 4 storm with peak winds of 130 mph, while Katrina made landfall as a Category 3 with peak winds of 125 mph.

“It could be quite devastating — especially some of those high rise buildings are just not rated to sustain that wind load,” said Jamie Rhome, acting deputy director of the National Hurricane Center.

The severe damage from Hurricane Laura, which struck southwest Louisiana last year as a Category 4 storm, was caused primarily by high winds peaking at 150 mph. The storm caused 42 deaths and damage costing more than $19 billion.

Ida’s rainfall also threatens to exceed Katrina’s highs.

The National Hurricane Center estimates that Ida will drench the Gulf Coast with 8 to 16 inches of rain and perhaps as much as 20 inches in some places. Katrina brought 5-10 inches of rain with more than 12 inches in the most impacted areas.

“That is a lot of rainfall,” said Mr. Rhome. “Absolutely the flash flood potential in this case is high, very high.” Especially combined with storm surge, he said, such intense levels of rainfall could have a “huge and devastating impact to those local communities.”

A wedding party marches by boarded-up buildings in the French Quarter in New Orleans on Saturday.
Credit…Dan Anderson/EPA, via Shutterstock

NEW ORLEANS — When a hurricane comes roaring toward New Orleans out of the Gulf of Mexico, there is a discernible mood shift on Bourbon Street, the city’s famed strip of iniquity and conspicuous alcohol consumption.

It goes from tawdry to tawdry with a hint of apocalypse. On Friday afternoon, the street was half alive. Daiquiri bars were open and daiquiri bars were boarded up. The doors to Larry Flynt’s Hustler Club were locked. Nearby, a man lay on his back on the sidewalk, a plastic bag at his side, yelling the name “Laura.” Or maybe “Lord.”

Six happy women from New York ambled toward Canal Street in matching black T-shirts that said, “Birthday, beignets and booze.” The birthday girl declined to give her name. They went past the club called The Famous Door, where a listless bar band played “Fat Bottomed Girls.”

The riffs poured out into the street. A member of the birthday team raised a glass of something alcoholic and sugary and shouted out the chorus.

Another of the New York women, Jessika Edouard of Long Island, said that most of her group had been trying to get out of town before the storm’s arrival, to no avail. It was all cancellations and unresponsive airline customer service. “The flights are terrible,” she said.

What choice did they have but to keep the party going? Ms Edouard thought she and some of the others might be able to leave on Monday, after Ida hit.

In the meantime, she said, they had bought a ton of booze in the French Quarter. In the morning they had beignets. They had just met a crew from the Weather Channel. They seemed more excited than scared.

Ms. Edouard even had words for the storm, which she delivered like a threat from one pro wrestler to another.

“If Hurricane Ida thinks she is going to ruin my friend’s 30th birthday, then Ida has another thing coming,” she said.

New Orleans residents prepared to leave after the mayor asked for voluntary evacuations in anticipation of Hurricane Ida.
Credit…Max Becherer/NOLA.com, via The Advocate, via Associated Press

NEW ORLEANS — With Hurricane Ida likely to bring powerful winds and heavy rain to their city, residents of New Orleans faced a familiar choice: flee or hunker down for the duration.

The storm was expected to make landfall by Sunday afternoon or evening and officials urged people who intended to evacuate to do so by Saturday. Residents came to a variety of decisions on the matter.

Lacy Duhe, 39, and Jeremy Housely, 42, opted to hunker down in their second-story apartment on Deslonde Street in New Orlean’s Lower Ninth Ward. If they evacuated and ended up in a shelter, they said, they worried about the risk of their unvaccinated children contracting Covid-19. They also had just paid their monthly bills and could not afford to go anywhere.

“It feels serious,” said the couple’s 11-year-old daughter, Ja-nyi. “I wasn’t born during Katrina time. But I know it knocked down a lot of places.”

Mary Picot, 71, walked out the door on Saturday afternoon carrying bags of snacks and medicine. She wasn’t worried about flooding and believed the levees would hold. It was the threat of power outages that convinced her to leave.

“My husband is diabetic,” she said. “We have to keep his medicine cold.”

Donald Lyons, 38, was packing up a silver Nissan sedan Saturday afternoon under a cloud-filled sky in Hollygrove, one of the traditionally Black working class neighborhoods that flooded badly when Katrina hit. The car, carrying his wife, three children and mother-in-law, was full of bags and bedding. They were heading to Sugar Land, Texas, 27 miles southwest of Houston, where they had family that had left after Katrina, 16 years ago, and never come back.

“I’m just trying to get somewhere safe,” Mr. Lyons said.

Down the block, Barbara Butler, 65, a housekeeper, said she thought the city was safer now with all of the new flood protection. She intended to ride out the storm at home.

“It gave us some relief,” she said. “It’s better than no relief.”

She was sitting on the porch with her husband, Curtis Duck, 63, and her brother, Ray Thomas, in a house that Ms. Butler said was flooded with eight feet of water after Katrina.

Mr. Duck said he was sick of evacuating time and again.

“We listen to the news,” he said. “People telling us to go, go, go.”

Victor Pizarro, a health advocate, and his husband decided to ride out the storm in their home in the Gentilly Terrace neighborhood, although they said they would leave town if they lost power for an extended period.

“It’s definitely triggering to even have to think about this and make these decisions,” Mr. Pizarro said in a telephone interview while he drove across town in search of a spare part for his generator. “It’s exhausting to be a New Orleanian and a Louisianian at this point.”

Andy Horowitz and his family decided to vacate their home in the Algiers Point neighborhood, which sits directly across the Mississippi River from the French Quarter. Mr. Horowitz is the author of “Katrina: A History, 1915-2015,” and he is among those scholars and Louisiana residents who fear that the city’s new flood protection system, as massive as it is, may prove to be inadequate for a sinking city in the likely path of more frequent and powerful storms in the age of climate change.

“Every summer, New Orleans plays a game of Russian roulette, and every summer we pull the trigger,” Mr. Horowitz said.

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New Orleans Mayor Urges Evacuations Ahead of Hurricane Ida

Hurricane Ida is expected to make landfall as a Category 4 storm on Sunday, which is also the 16th anniversary of Hurricane Katrina. Mayor LaToya Cantrell warned residents to either evacuate immediately or bunker down in a safe place ahead of the hurricane.

What we know is today, right now, everyone has to make a decision to leave voluntarily, which I’m recommending, do that, prepare yourselves. If you’re going to leave, you need to do that now. We need to make sure that you are in a safe place, everyone, whether you’re going to leave voluntarily or stay onsite, hunkered down. Wherever that is, hopefully that’s your home, in our city, but in a safe space. Prepare for damaging wind, power outages, heavy rain, tornadoes. What I am told is that this storm in no way will be weakening. There will be and there are no signs, again, that this storm will weaken, and there’s always an opportunity for the storm to strengthen. This continues to remain a very fluid situation. And we know, again, that time is not on our side. It’s just, it’s rapidly, it’s growing, it’s intensifying.

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Hurricane Ida is expected to make landfall as a Category 4 storm on Sunday, which is also the 16th anniversary of Hurricane Katrina. Mayor LaToya Cantrell warned residents to either evacuate immediately or bunker down in a safe place ahead of the hurricane.CreditCredit…Matthew Hinton, via Associated Press

NEW ORLEANS — With tracking maps for Hurricane Ida consistently showing an expected pathway toward southeast Louisiana, Mayor LaToya Cantrell of New Orleans issued a stern warning on Saturday that city residents who intend to leave should do so immediately.

“In no way will this storm be weakening, and there’s always an opportunity for the storm to strengthen,” Ms. Cantrell said at a news briefing. “Time is not on our side. It’s rapidly growing, it’s intensifying.”

City officials are asking that residents who plan to stay in the city prepare for extended power outages, limited emergency services and several days of high temperatures after the storm passes.

“The first 72 is on you,” said Collin Arnold, director of the New Orleans Office of Homeland Security and Emergency Preparedness. “The first three days of this will be difficult for responders to get to you.”

Forecasters are predicting that Hurricane Ida will be a Category 4 storm upon landfall on Sunday, the 16th anniversary of Hurricane Katrina, which left more than 1,800 dead.

“What we learned during Hurricane Katrina is we are all first-responders,” Ms. Cantrell said. “It’s about taking care of one another.”

Delery Street in the Ninth Ward of New Orleans was flooded after Hurricane Katrina in 2005.
Credit…Nicole Bengiveno/ New York Times

NEW ORLEANS — On Saturday afternoon, the Rev. Willie L. Calhoun Jr., a 71-year-old resident of the Lower Ninth Ward, was in his Lincoln Continental on the brink of getting out of town. He was not quite sure where. Somewhere in Alabama, he figured.

Rev. Calhoun remembers his father smashing a hole in the roof of his family’s home in the Lower Ninth in 1965, when Hurricane Betsy put 10 feet of water in his house. When Katrina came, he and his family made sure to get out of the neighborhood before the storm destroyed their homes — unlike many of his neighbors, some of whom perished when the levees failed.

The pain from Katrina was now an indelible fact of life in the neighborhood. He had hoped to take part in a 16th anniversary commemoration on Sunday, with a high school marching band and a theme, he said, of “healing, unifying and strengthening our communities.”

“The trauma, and the hurt that’s there,” he said. “I have one friend who lost his mother and his granddaughter in Katrina. For that trauma to be revisited every year is a tough thing.”

But his perspective on the neighborhood 16 years on was somewhat nuanced. He felt confident that the improvements to the city’s storm protection system — with its mammoth flood walls and new gates and levees — would keep the Ninth Ward safe. His worry, he said, was the damage from the wind that comes with a Category 4 hurricane.

And yet it was difficult not to be disappointed. The jobs for Black men seemed to have dried up in the city. A revamped post-Katrina educational system, heavily reliant on charter schools, did not seem, in Rev. Calhoun’s opinion, to have done much good. The neighborhood was in need of economic stimulus. Still full of empty lots, and ghostly foundations of homes, many of them owned by Black families, long washed away.

After $20 billion in infrastructure improvements, it felt, at best, like partial progress, and like survival with an asterisk.

Credit…Adrees Latif/Reuters

LAKE CHARLES, La. — Not again. That was the widespread sentiment among residents of Lake Charles, a city of about 76,000 residents some 200 miles from New Orleans, on Saturday.

A year after Hurricane Laura left many here without power — and some without homes — for long periods of time, residents were preparing for perhaps yet another weather catastrophe.

When Laura, a powerful Category 4 storm, barreled through Lake Charles last August, it shattered the windows of the home that Juan Jose Galdames, 55, a construction worker, shared with his five children. On Saturday, he was at Home Depot, buying plywood to protect the windows and other vulnerable parts of his house ahead of the storm.

“Yes, I am a little afraid,” Mr. Galdames said. “I don’t want a repeat of that day. It was scary. I want my children to feel safe. I’m trying to get everything ready before nightfall.”

Water and bread were in short supply at an area Target store, and traffic stretched for miles as residents sought safety elsewhere.

Tracy Guillory, 57, a carpenter, tried to prepare by stocking up on supplies and staying on top of weather reports. She said she and her family were weary after a long year of weather crises that included Hurricane Delta and a winter storm that caused pipes to burst and knocked out water systems throughout the region.

Ms. Guillory said her neighborhood was still recovering from flooding in May, which left her SUV beyond repair. She plans to hunker down with her 83-year-old father and 21-year-old daughter.

Josue Espinal, 34, who also works in construction, was trying to reassure his 4-year-old son, Anderson, that everything would be all right. The boy sat on top of a generator box as his father loaded a cart with bottles of water at a Home Depot. Truth was, Mr. Espinal admitted, he too was worried. He and his family live in a mobile home near a lake, and he was looking for a better option to spend the next two nights.

A medical worker monitored a Covid-19 patient in the intensive care unit at Lake Charles Memorial Hospital in Louisiana earlier this month.
Credit…Mario Tama/Getty Images

In Louisiana, where daily deaths from Covid reached their highest levels this week, stretched hospitals are having to modify the intense preparations they would normally make ahead of an expected strike from Hurricane Ida.

Louisiana’s medical director, Dr. Joseph Kanter, asked residents on Friday to avoid unnecessary emergency room visits to preserve the state’s hospital capacity, which has been vastly diminished by its most severe Covid surge of the pandemic.

And while plans exist to transfer patients away from coastal areas to inland hospitals ahead of a hurricane, this time “evacuations are just not possible,” Gov. John Bel Edwards said at a news conference.

“The hospitals don’t have room,” he said. “We don’t have any place to bring those patients — not in state, not out of state.”

The governor said officials had asked hospitals to check generators and stockpile more water, oxygen and personal protective supplies than usual for a storm. The implications of a strike from a Category 4 hurricane while hospitals were full were “beyond what our normal plans are,” he added.

Mr. Edwards said he had told President Biden and Deanne Criswell, the administrator of the Federal Emergency Management Agency, to expect Covid-related emergency requests, including oxygen.

The state’s recent wave of Covid hospitalizations has exceeded its previous three peaks, and staffing shortages have necessitated support from federal and military medical teams. On Friday, 2,684 Covid patients were hospitalized in the state. This week Louisiana reported its highest ever single-day death toll from Covid — 139 people.

Oschner Health, one of the largest local medical systems, informed the state that it had limited capacity to accept storm-related transfers, especially from nursing homes, the group’s chief executive, Warner L. Thomas, said. Many of Oschner’s hospitals, which were caring for 836 Covid patients on Friday, had invested in backup power and water systems to reduce the need to evacuate, he said.

The pandemic also complicated efforts to discharge more patients than usual before the storm hits. For many Covid patients who require oxygen, “going home isn’t really an option,” said Stephanie Manson, chief operating officer of Our Lady of the Lake Regional Medical Center in Baton Rouge, which had 190 Covid inpatients on Friday, 79 of them in intensive care units.

The governor said he feared that the movement of tens or hundreds of thousands of evacuees in the state could cause it to lose gains made in recent days as the number of new coronavirus cases began to drop. Dr. Kanter urged residents who were on the move to wear masks and observe social distancing. Many of the state’s testing and vaccination sites were slated to close temporarily.

The Inner Harbor Navigation Canal Surge Barrier was constructed after Hurricane Katrina to prevent tidal surges from hurricanes from reaching New Orleans.
Credit…Gerald Herbert/Associated Press

NEW ORLEANS — As Hurricane Ida heads toward a possible Sunday landfall on Louisiana’s coastline, the National Weather Service’s storm surge forecast has local officials warning about the potential for water to overtop some of the levees that protect parts of New Orleans.

Mayor LaToya Cantrell of New Orleans noted at a news briefing on Friday evening that water overtopping the levees “is as it was structured to do.” That reflects the updates to the local system of earthen and reinforced levees that protects much of southeast Louisiana in the years after Hurricane Katrina stretched it to a breaking point.

The system, officials said, was rebuilt to defend against a so-called “100-year-storm,” or a storm that has a 1 percent chance in happening every year, but to remain reinforced up to a 500-year-event. It includes armoring, splash pads — concrete areas designed to keep the ground behind an overtopped wall from being washed away — and pumps with backup generators, officials said.

Heath Jones, an emergency operation manager with the Army Corps of Engineers, said that some levees protecting New Orleans on the western side of the Mississippi River were at risk of overtopping in line with the Weather Service’s forecast calling for between 10 and 15 feet of storm surge. A federal levee database shows sections of levee there as low as 10 feet.

Levees in this part of the state have rarely been challenged since they were shored up in the years after Hurricane Katrina in 2005.

“The previous big tests were (hurricanes) Isaac and Gustav,” said Matt Roe, a public affairs specialist with the Army Corps of Engineers, which occurred in 2012 and 2008, “but it’s important to note that each storm is different.”

Ida’s strength, according to Chip Cline, chairman of the Coastal Protection and Restoration Authority, “will test our hurricane protection system in a way they haven’t been tested before.”

Homes in Lake Charles, La., were covered with blue tarps after being hit by Hurricane Laura. Then Hurricane Delta swept through, knocking down trees and scattering debris from the previous storm.
Credit…William Widmer for The New York Times

Hurricane Ida threatens to be the first major storm to strike the Gulf Coast during the 2021 season, hitting a region in many ways still grappling with the physical and emotional toll of a punishing run of hurricanes last year.

The Atlantic hurricane season of 2020 was the busiest on record, with 30 named storms, 13 of which reached hurricane strength. There were so many storms that forecasters ran through the alphabet and had to take the rare step of calling storms by Greek letters.

Louisiana was dealt the harshest blow, barraged repeatedly by storms, including Hurricane Laura, which was one of the most powerful to hit the state, trailed six weeks later by Delta, which was weaker than Laura but followed a nearly identical path, inflicting considerable pain on communities still gripped by the devastation from the earlier storm.

The state is still struggling to claw its way back. Gov. John Bel Edwards of Louisiana said the state had $3 billion in unmet recovery needs. In Lake Charles, which was ravaged by direct hits from both hurricanes followed by a deadly winter storm and flooding in May, local officials recently renewed a plea for federal aid as the city has failed to regain its footing; much of it has yet to recover and many residents, unable to find adequate or affordable housing, have fled.

The looming impact of Ida underscores the persisting danger imperiling coastal communities as a changing climate stands to intensify the destructive force of the storms that have always been a seasonal part of life.

President Biden cited the growing danger in May when he announced a significant increase in funding to build and bolster infrastructure in communities most likely to face the wrath of extreme weather.

A fallen tree and electricity pole were cleared as Hurricane Nora approaches Manzanillo, Mexico, on Sunday.
Credit…Reuters

Hurricane Nora formed in the eastern Pacific on Saturday morning, threatening much of Mexico’s western coastline as the storm strengthens and barrels its way toward Puerto Vallarta, Jalisco and the tip of the Baja California Peninsula, forecasters said.

As of 10 a.m. on Saturday, Nora was about 425 miles from Cabo San Lucas, Mexico, and had maximum sustained winds of 80 miles per hour as it moved north, according to the National Hurricane Center.

A hurricane warning was in effect for parts of western Mexico.

Forecasters said the storm was expected to cause flooding, mudslides and perilous surf along much of Mexico’s central and northern Pacific Coast.

The remnants of the storm are expected to produce heavy rainfall in parts of the southwestern U.S. and central Rockies toward the middle of next week, forecasters said.

A forecast track from the National Hurricane Center showed Nora skirting close to Mexico’s coastline by Sunday morning before moving toward the Gulf of California a day later.

“Some additional strengthening is forecast through tonight if Nora’s center does not make landfall,” the National Hurricane Center said in an update. “Some gradual weakening is expected to begin by Sunday night or Monday, but Nora is forecast to remain as a hurricane through Tuesday.”

Nora is expected to produce rainfall totals of up to 12 inches this weekend along Mexico’s western coast.

It has been a dizzying few weeks for meteorologists who are monitoring Hurricane Ida this weekend after having monitored three named storms that formed in quick succession in the Atlantic, bringing stormy weather, flooding and damaging winds to different parts of the United States and the Caribbean.

The links between hurricanes and climate change are becoming more apparent. A warming planet can expect to see stronger hurricanes over time, and a higher incidence of the most powerful storms — though the overall number of storms could drop because factors like stronger wind shear could keep weaker storms from forming.

Hurricanes are also becoming wetter because of more water vapor in the warmer atmosphere; scientists have suggested that storms like Hurricane Harvey in 2017 produced far more rain than they would have without the human effects on climate. Also, rising sea levels are contributing to higher storm surges — the most destructive element of tropical cyclones.

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