Johnson reportedly saw a man struggling to carry bags near Union Square on Saturday evening and set aside his belongings for less than a minute to put him in a taxi. When he turned back to get his things, they were gone.
Johnson reportedly saw a man struggling to carry bags near Union Square on Saturday evening and set aside his belongings for less than a minute to put him in a taxi. When he turned back to get his things, they were gone.

Star-spangled camper … a homeless man in a temporary tent city in Sacramento, California Photo: Getty
The continuing fear of job losses in the US means consumers are saving rather than spending – denying fuel to the retail engine of the economy.
EVEN in the affluent US capital, a city that has been relatively insulated from the worst recession since Great Depression, the beggars are visible. They sleep on the street just a block from the White House and at major intersections they wait for fellow Americans to come to a standstill and spare a dollar.
Many carry signs telling their personal story: laid off, returned Iraq vet, lost the house and the job, got sick and no health care.
A year after the US financial markets went into a tailspin, its economy is showing tentative signs of a weak recovery but unemployment continues to rise, though not at the terrifying rate of six months ago, when 600,000 people a month were joining the jobless lines.
Something else has happened in America as well. The era of easy credit that fuelled two decades of mostly spectacular growth is over, not just on Wall Street. The American consumer has started saving. Mortgages, personal loans and even credit cards are harder to get. Consumer credit was down 5.2 per cent annualised between April and June. Revolving credit, which includes credit cards, was down 9 per cent.
The turbocharged consumer market that powered the American economy since the 1980s has run out of puff. These combined, related factors – people don’t spend if they fear for their jobs – are likely to define the US recovery. It will be slow and painful.
The jobless rate rose to 9.7 per cent in August and is expected to peak above 10 per cent in the months ahead. It is already there in at least 15 states and some economists predict it could be five years before the US economy generates enough jobs to overcome those lost and to employ the new workers entering the labour force.
This fear of job losses is likely to keep consumers’ wallets in their pockets. Without a return to spending – retail sales make up 70 per cent of the US economy – it seems inevitable the recovery will be slower than in the past.
So what are the positives? Retail sales have shown signs of improvement and the federal stimulus package is working its way into the economy.
The retail figures for August were up 2.7 per cent, the biggest jump since January 2006, and vehicle sales up 11.9 per cent.
Excluding vehicles, retail sales were up 1.1 per cent – the comparable figure in July was a 0.6 per cent decrease – but the boost was due in part to higher petrol prices at convenience stores. Most analysts are cautious about popping the champagne corks too early and will wait for a stronger spending trend to emerge.
In the housing market – which helped spark the crisis – there are tentative signs of stabilisation. Home foreclosures dipped slightly in August from July but are still 18 per cent above a year ago. The highest foreclosure rate is in Nevada, with one house in 62.
On home prices, the Case-Shiller Index has shown increases for May and June after 37 months of decline. The number of home sales has risen too.
”The only doubts about it are the market is rather abnormal now with all these foreclosure sales,” said Robert Shiller, who helped develop the index.
Falls in house prices have been huge – in some markets as much as 50 per cent. Many Americans, perhaps a quarter of those with mortgages, owe more than their homes are worth.
The Obama Administration’s ability to stimulate the economy further is severely curtailed by its huge budget deficits – and Congress has run out of patience with financial bail-outs.
“I don’t think we are out of the woods yet,” President Barack Obama said this week. “We need to be careful about taking the crutches away from the patient too early.”
A popular state tax credit of up to $10,000 that helped sell hundreds of new houses throughout the Sacramento region earlier this year appears to be coming back.
A plan to extend the state tax credit to another 4,285 buyers of new, unoccupied homes in California – possibly as many as 500 in the capital area – is expected to receive a vote in the Legislature by Friday’s end of the session.
The buyer tax credit began March 1 and unexpectedly sold out by July 2 as many first-time California buyers combined the state credit with an $8,000 federal tax credit.
Statewide, Roseville ranked eighth among cities where new house buyers received the state credit. Sacramento ranked ninth, the state Franchise Tax Board reported.
“It was used very extensively,” said Dennis Rogers, a government affairs executive with the Roseville-based North State Building Industry Association. He and others in Sacramento’s struggling building industry said the credit helped prod buyers off the fence before it ended in July.
“We’ve definitely seen a lot of interest from homebuyers coming into the sales environment because of the program,” said Pulte Homes spokeswoman Jacque Petroulakis. Pulte is the capital region’s largest home builder.
The original tax credit also helped area builders clear an excess inventory of homes finished or nearly finished, but not yet sold.
Builders and buyers now in the sales process hope to see the bill pass the Legislature this week and be signed by Gov. Arnold Schwarzenegger.
That’s considered likely by many close to the legislation. The governor was a force behind the original tax credit, calling it a job generator for the construction industry and larger California economy.
Statewide, 10,659 California buyers got the homebuyer credits, which allowed tax breaks of up to $3,333 per year for three years, the Franchise Tax Board reported Aug. 31. Buyers are expected to be notified by Friday about the amount of credit allocated or denied.
The tax agency stopped taking applications July 2, assuming that it had reached the program’s $100 million limit. Original expectations were that most people could claim the entire $10,000. Then a newer FTB sample of taxpayers approved for the credit based on “their 2007 income tax liabilities, and incorporating 2009 tax law changes” showed most people won’t owe enough state taxes to claim an entire $10,000 credit over three years.
“It’s estimated that most people will get about $7,000,” said FTB spokeswoman Brenda Voet. She said those who qualify for the entire $10,000 will still receive it.
The new FTB liability estimates means an estimated $30 million in credits could go unclaimed under provisions of the original tax credit bill passed in February.
Assembly Bill 765, by Assemblywoman Anna Caballero, D-Salinas, reauthorizes the tax credit under the new estimates. New credits would be available upon the bill’s signing and run through March 1, 2010. Builders must apply on behalf of buyers within one week of closing escrow.
The new bill, however, won’t help capital-area buyers who closed escrow after the FTB’s July 2 deadline. They’ll be ineligible for the tax break because they closed escrow during a time when the law, if it passes, was not in effect.

If you’re a basketball fan, this is the Kevin Johnson you remember: K.J., the all-star point guard for the Phoenix Suns. Whether running the Suns’ offense or dunking over seven-footers like Houston’s Hakeem Olajuwan, the combative Johnson was more than a match for almost any opponent.
But take a look at what he’s up against now. Today, K.J. is mayor of Sacramento, Calif., and, if the meltdown had a hometown, this might be it.
Kevin Johnson: The big challenges for the city of Sacramento are no different than the ones that we’re facing nationally and statewide.
Sacramento is — in some ways — a bellwether for the economic state of the nation. It cratered faster and deeper into the foreclosure crisis than almost any city in the country. With an unemployment rate somewhere north of 11 percent, the California’s capital city is a full two points higher than the national average.Pretty tough going for the multi-millionaire hometown sports hero who’s brand new to politics.
Kevin Johnson: I’m living the dream. I’m living the dream. I mean, a kid who grows up in an inner-city, poor part of Sacramento, California, first in my family to go to college. Luckily to graduate and play 12 years in the NBA. I didn’t think my life could get any better.
Johnson’s election last November made history. He’s the first African American mayor of a city that is only fifteen percent black. And, Kevin Johnson is a child of Sacramento’s Oak Park neighborhood.
Oak Park began as Sacramento’s first suburb; it was working class when Johnson was growing up here. But it became the part of town where people lock their doors when they drive through.
Johnson’s mother was only 16 when he was born here. His father drowned when Kevin was three, and he was raised in this house by his maternal grandparents. His grandfather, a sheet metal worker, would become a model for young Kevin.
If you’re a basketball fan, this is the Kevin Johnson you remember: K.J., the all-star point guard for the Phoenix Suns. Whether running the Suns’ offense or dunking over seven-footers like Houston’s Hakeem Olajuwan, the combative Johnson was more than a match for almost any opponent.
But take a look at what he’s up against now. Today, K.J. is mayor of Sacramento, Calif., and, if the meltdown had a hometown, this might be it.
Kevin Johnson: The big challenges for the city of Sacramento are no different than the ones that we’re facing nationally and statewide.
Sacramento is — in some ways — a bellwether for the economic state of the nation. It cratered faster and deeper into the foreclosure crisis than almost any city in the country. With an unemployment rate somewhere north of 11 percent, the California’s capital city is a full two points higher than the national average.Pretty tough going for the multi-millionaire hometown sports hero who’s brand new to politics.
Kevin Johnson: I’m living the dream. I’m living the dream. I mean, a kid who grows up in an inner-city, poor part of Sacramento, California, first in my family to go to college. Luckily to graduate and play 12 years in the NBA. I didn’t think my life could get any better.
Johnson’s election last November made history. He’s the first African American mayor of a city that is only fifteen percent black. And, Kevin Johnson is a child of Sacramento’s Oak Park neighborhood.
Oak Park began as Sacramento’s first suburb; it was working class when Johnson was growing up here. But it became the part of town where people lock their doors when they drive through.
Johnson’s mother was only 16 when he was born here. His father drowned when Kevin was three, and he was raised in this house by his maternal grandparents. His grandfather, a sheet metal worker, would become a model for young Kevin.
Kevin Johnson: The number one lesson he taught me in life is that you have to be a good neighbor, a Good Samaritan, at all times.
Johnson excelled at baseball before becoming a basketball star at Sacramento High. But the athlete who was such a good student that he skipped a grade in grammar school was in for a reality check when he won a scholarship to the University of California-Berkley.
Kevin Johnson: I was woefully unprepared. I remember sitting in an English class and they were talking about euphemisms. So, I didn’t know what the word meant. I remember going back and feeling this small. And I made a commitment that day, that I was– gonna go back to my community in Sacramento and make sure that kids just like me would not feel what I felt in college.
After college, Johnson passed on an opportunity to play professional baseball with the Oakland A’s and went to the NBA.
And he starting giving back to Sacramento. Using some of his NBA money, Johnson established a faith-based foundation called St. Hope in his old neighborhood.
It began as an after school program but over 20 years has expanded to include charter schools, including Sacramento high and a development corporation that’s brought an art gallery, a bookstore, a barbershop and a movie theater to oak park.
Josh Mankiewicz: How is Saint Hope different from charitable foundations that celebrities just kind of lend their names to?
Kevin Johnson: we’re very focused in education and charter schools. Last year’s graduating class, 83 percent got accepted to a four-year college.
Josh Mankiewicz: And when they get into college, they’re gonna know what a euphemism is?
Kevin Johnson: They’re gonna definitely know what a euphemism is. (laughter) Absolutely. Absolutely.
He thought about politics when he was still with the Suns, courted by both parties … But he wasn’t ready to commit.
By 2008, after a stint as an analyst with NBC sports, he came home to work on St. Hope, ad he found that fire in his belly. He ran as a Democrat. But, he may not have seen what was coming.
Kevin Johnson: The historians of Sacramento have clearly said it was the dirtiest campaign that this city has ever seen.
The seven-candidate primary was brutal, but Johnson finished first and went on to defeat the two- term incumbent.
He’s been pretty much on his feet since then. Hizzoner’s day starts at 5 a.m. with a run with staffers. A strategy session in perpetual motion, time well spent.
Sacramento Bee columnist Marcos Breton:
Marcos Breton: He’s really going to be tested as a politician in the coming months. Huge budget deficit. Huge cutback in city services. Huge challenges in terms of investment and lack thereof in Sacramento.
Josh Mankiewicz: Not easy.
Marcos Breton: Not easy. Difficult for the most seasoned politician and you’re still talking about a rookie having to do work that would humble a veteran.
Josh Mankiewicz: You could have done anything you wanted. And what you want to do is sit in meetings and talk about municipal finance and how many positions you’re gonna have to cut? (laughter)
Kevin Johnson: It’s a strange, strange, strange way things work out. I’m in this job and this seat to solve problems, and to make people’s lives better. So whatever that challenge is, I’m gonna meet it.
And so a man who once played in front of huge crowds in the NBA making $6 million a year is now spending his evenings in city council meetings with an audience measured in dozens…for one fiftieth the money.
Josh Mankiewicz: True that you haven’t touched a basketball basically since you hung it up?
Kevin Johnson: Touched a basketball one time in nine years/and my goal was, to see if I can dunk, on my 40th birthday. I am sad to report that I was not able to dunk on my 40th birthday and have not touched it since. (laughter)
Johnson has only been mayor since the end of November and he’s getting a lesson in politics, which it turns out, is more of a contact sport than the one he used to play.
Kevin Johnson: That’s, you know, politics they– they throw even more elbows, and they’re sharper.
Josh Mankiewicz: And they don’t all get called.
Kevin Johnson: Yeah, they don’t get called.
Josh Mankiewicz: I can’t help but think that that was not what you expected.
Kevin Johnson: It wasn’t what I expected, but again (laughter), I say, “When you’re play in the NBA, you’re booed half the time. And they’ll even boo you at home if you’re not playing well (laughter).
Johnson heard the crowd turn against him early this year after news reports about a Sacramento homeless encampment drew world- wide attention and pushed him onto the national stage.
The newly-minted mayor made the best of it.
Tent City was shut down. A new shelter opened for those homeless willing to move there. It may have been little more than a temporary solution. But the new mayor had faced–and finessed– his first public-relations challenge.
And, it turns out that who he was on the hardwood is who he is on City Hall’s marble floors.
Josh Mankiewicz: I talked to somebody today who said, “You know, this guy, when he was a player, he was exacting and he was– he knew exactly what he wanted and he used to yell at other players who didn’t move to the right spots, and he used to scowl at people when they didn’t play well enough, and he’s gotta learn that doesn’t work in politics.”
Kevin Johnson: All that’s like, “I wanna win. I want a sense of urgency. I want people to feel like we have a chance.” So, it– for me, it’s just this relentlessness of– just being the best and– and not wanting to let up. And people respect that.