Japan’s Nikkei outperforms as opposition wins big

LONDON (AP) — Japanese shares outperformed all others Monday amid hopes that the new government will enact fresh stimulus measures to boost the world’s third-largest economy.

Signs that U.S. politicians are inching toward a budget deal helped Wall Street open stronger than earlier predicted and shored up European markets after a bad morning.

The standout index was Japan‘s Nikkei 225, which closed up 0.9 percent at 9,828.88, its highest level since April, after the country’s Liberal Democratic Party swept back into power at weekend elections with a landslide victory.

Party chief Shinzo Abe, who is in line to become prime minister, favors increased spending on public works and setting a 3 percent economic growth target. He’s also expected to lobby for stronger action by the central bank to get Japan out of its deflationary trap.

“Japanese equities rallied today on the back of a resounding victory by Shinzo Abe‘s LDP, giving them a mandate to boost economic growth through more aggressive fiscal and monetary easing,” said Rebecca O’Keeffe, head of investment at Interactive Investor.

Expectations of further stimulus in Japan, despite the country’s sky-high debt levels and doubts over the effectiveness of looser economic policy, further weighed on the yen. The dollar was 0.4 percent higher at $ 83.73 yen.

The yen’s recent weakness is a potential boon to the country’s powerhouse exporters. Automaker Nissan Motor Co. rose 1.8 percent, Sony Corp. climbed 1.4 percent and Panasonic Corp jumped 2.3 percent.

Elsewhere, markets remained largely beholden to developments over the U.S. budget. The concern is whether the White House and Congress will agree a budget deal in time to avoid the “fiscal cliff” of automatic tax increases and spending cuts at the start of next year.

In Europe, the FTSE 100 index of leading British shares was down 0.4 percent at 5,896 while Germany’s DAX fell 0.1 percent to 7,590. The CAC-40 in France was 0.3 percent lower at 3,631.

In the U.S., the Dow Jones industrial average was up 0.5 percent at 13,194 while the broader S&P 500 index rose the same rate to 1,421.

Though the budget measures associated with the “fiscal cliff” would not all be introduced at once and the Republicans have indicated a willingness to increase taxes on households earning over $ 1 million, investors won’t breathe easily until a deal is signed, sealed and delivered.

“Investors have so far remained hopeful that an agreement can be reached in a sufficiently timely manner,” said Nick Bennenbroek, an analyst at Wells Fargo Bank. “However, with a year-end deadline for a deal now looming closer, those budget developments should become increasingly important through the end of December.”

In recent weeks, the dollar had suffered, at least against the euro, due to the U.S. budget fears. On Monday, the currencies were steady, with the euro up 0.1 percent at $ 1.3165.

Oil markets were subdued too, with the price of benchmark New York crude up 27 cents at $ 87 a barrel.

Elsewhere in Asia, China’s shares fared fairly well as its new leaders promised more spending if needed to underpin a wobbly economic recovery. Those hopes helped the Shanghai Composite to rise 0.4 percent to 2,160.34 and the smaller Shenzhen Composite index to end 0.4 percent higher to 819.58.

On Sunday, China’s new Communist Party leaders under party General Secretary Xi Jinping pledged a “proactive fiscal policy” and “prudent monetary policy” in a statement carried by the official Xinhua News Agency. They were references to the willingness to boost spending if needed and keep credit easy so long as inflation stays low.

Elsewhere in Asia, South Korea’s Kospi lost 0.6 percent to 1,983.07 and Hong Kong’s Hang Seng was down 0.4 percent at 22,513.61.

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Iran media: Son of ex-president released on bail

TEHRAN, Iran (AP) — Iranian media say the son of influential former President Akbar Hashemi Rafsanjani has been released on bail.

Several papers, including the pro-reform Etemad daily, say Mahdi Hashemi was released late Sunday and immediately went to his father’s home.

Authorities arrested the younger Hashemi in late September, a day after he returned to Iran from Britain.

He is held on charges of fomenting unrest in the aftermath of Iran’s disputed 2009 presidential election that brought President Mahmoud Ahmadinejad a second term in office. Hashemi also faced corruption charges.

His arrest came days after his sister, Faezeh, was taken into custody to serve a six-month sentence on charges of making propaganda against Iran’s ruling system.

Since Rafsanjani backed Ahmadinejad’s reformist challenger in 2009, his family has come under pressure from hardliners.

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Clearwire accepts slightly sweeter bid from Sprint

(Reuters) – Clearwire Corp agreed to sell roughly half of the company for $ 2.2 billion to majority shareholder Sprint Nextel Corp, which would then have full ownership of spectrum that will help it offer high-speed wireless services.

The $ 2.97-per-share deal is only 7 cents per share higher than a bid many minority shareholders said was too low days before. Clearwire shares tumbled 12.2 percent to $ 2.96 in morning trading on Monday.

Sprint already owns slightly more than half of Clearwire. The company said owners of 13 percent of Clearwire shares – Comcast Corp, Intel Corp and Bright House Networks LLC – had agreed to vote for the deal.

But it was not immediately clear whether Sprint, the No. 3 U.S. wireless carrier, could win the backing of a majority of Clearwire’s minority shareholders, which it needs to take control.

“This is not going to be popular with the minority shareholders,” said Davidson & Co analyst Donna Jaegers.

But Clearwire’s top executive told analysts on a Monday call that the company had little alternative.

“Despite our efforts we have been unable to secure new partnerships,” said Clearwire Chief Executive Officer Erik Prusch. “Our existing governance agreements prevented us from offering third parties the governance rights they desired in a partnership.”

Shareholders with more than 13 percent of Clearwire shares said last week that they were not happy with the $ 2.90-per-share offer, and some have said Sprint should offer as much as $ 5 per share.

Crest Financial, which owns more than 3 percent of Clearwire, recently filed a lawsuit to stop the company from selling itself to Sprint.

After the deal was announced on Monday, Crest said it had amended the lawsuit to make it a class action.

Another shareholder, Mount Kellett, said last week that the $ 2.90-a-share deal “grossly” undervalued Clearwire.

Clearwire, which also counts Sprint as its biggest customer, has been seeking financing for a high-speed wireless network upgrade and to keep itself afloat.

While some analysts and shareholders said Clearwire did not need to rush into a sale to Sprint, others have said that move would be its best hope for survival.

Sprint, whose shares rose 1 percent to $ 5.61 on Monday, needs Clearwire’s substantial spectrum to better arm itself against larger rivals Verizon Wireless and AT&T Inc.

Reuters reported last week that Japan’s Softbank Corp, which recently struck a deal to buy 70 percent of Sprint, would not consent to a bid of more than $ 2.97 per share.

Softbank said on Monday that it supported the deal.

(Reporting by Sinead Carew in New York and Sayantani Ghosh in Bangalore; Editing by Rodney Joyce, Sriraj Kalluvila and Lisa Von Ahn)

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Jason Mraz tops Myanmar anti-trafficking concert

YANGON, Myanmar (AP) — American singer-songwriter Jason Mraz mixed entertainment with education to become the first world-class entertainer in decades to perform in Myanmar, with a concert to raise awareness of human trafficking.

Mraz’s 2008 hit “I’m Yours” was the finale for Sunday night’s concert before a crowd of about 50,000 people at the base of the famous hilltop Shwedagon Pagoda in Yangon, the country’s biggest city.

Local artists, including a hip-hop singer, also played at the event organized by the anti-trafficking media group MTV EXIT — for “End Exploitation and Trafficking” —in cooperation with U.S. and Australian government aid agencies and the anti-slavery organization Walk Free.

Myanmar is emerging from decades of isolation under a reformist elected government that took office last year after almost five decades of military rule. It has been one of the region’s poorest countries, and its bad human rights record made it the target of political and economic sanctions by Western nations.

But democratic reforms initiated by President Thein Sein have led to the lifting of most sanctions, and the country is hopeful of a political and economic revival. Nobel Peace Prize laureate Aung San Suu Kyi, the pro-democracy opposition leader, was released from house arrest in late 2010 and won a seat in parliament last April.

Mraz called his top-billed appearance at the concert a “tremendous honor.”

“I think the country is, at this time, downloading lots of new information from all around the world,” he said. “I’ve always wanted my music to be here, (for) hope and celebration, peace, love and happiness. And so I’m delighted that my music can be a part of this big download that Myanmar is experiencing right now.”

Organizers said Mraz was the first international artist to perform at an open-air, mass public concert in Myanmar. Jazz artists Count Basie, Duke Ellington and Charlie Byrd visited the country under U.S. government sponsorship in the 1970s, when it was still called Burma, but played at much smaller venues.

Many in the crowd queued for two hours before being admitted to the concert site. Yangon native Sann Oo, 31, wearing a white T-shirt with a sketch of Mraz, said he was pleased that Mraz had come and that there would be a broadcast of the event.

“His visit can promote the image of Myanmar, because people outside have been seeing the country as an insecure place, and poor,” he said. “Now they can see how we look like from the concert. It also opens the potential for more concerts by foreign artists.”

Mraz has a history of involvement with human rights and other social causes.

But there was some criticism of his visit by campaigners for Myanmar‘s Muslim Rohingya community, which has been the target of ethnic-based violence this year that has forced tens of thousands of people from their homes into makeshift refugee camps. They feel Myanmar’s government has been complicit in the discrimination, and that Mraz’s visit provides it cover with the image of being a defender of human rights.

Mraz said he was aware of the issue, but that if he didn’t come to do the concert because someone else had asked him to protest another problem, then that would not help tackle the exploitation and human trafficking issue.

“I understand that there is a lot of wrongdoing in this world,” he said. “Today I’m here for this.”

Walk Free used the occasion of Sunday’s concert to launch a campaign calling on the world’s major corporations “to work together to end modern slavery by identifying, eradicating and preventing forced labor in their operations and supply chains.” They are seeking to have the companies make a “zero tolerance for slavery pledge” by the end of March next year.

“While many think of slavery as a relic of history, experts estimate that there are currently 20.9 million people living under threat of violence, abuse and harsh penalties,” the Australia-based group said in a statement. “Within this massive number, the majority of people – more than 14.2 million – are in a forced labor situation, used to source raw materials, and create products in sectors such as agriculture, construction, manufacturing and domestic work.”

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Child deaths and bitter cold in Syrian refugee camps

ZAATARI, Jordan (Reuters) – One-year-old Ali Ghazawi, born with a heart defect, faced a battle for survival even before his family fled Syria‘s civil war. It was a struggle he lost two weeks ago in the bitter winter cold of a tented refugee camp in north Jordan.

Ali died two days after undergoing a heart operation in Zaatari camp, which houses at least 32,000 refugees who escaped fierce bombardment in Syria’s rebellious southern province of Deraa, cradle of the uprising against President Bashar al-Assad.

“I covered my son with two blankets, but he was not warming up, and he turned blue before he passed away in my hands,” said his sobbing 22-year-old mother, alone with a three-year-old daughter after she left her husband in Deraa and crossed the border in November.

Ali was the fourth baby to die in three weeks in the windswept camp. United Nations aid workers say none of the deaths were the direct result of conditions in Zaatari, yet they highlight the challenge facing relief agencies scrambling to provide basic shelter for half a million refugees in the region.

“These deaths are a result of cumulative factors, some related to shortage in needs and natural causes. But on top of that, the reality that conditions are harsh cannot be ignored,” said Saba Mobaslat, program director at Save the Children.

Jordan, Lebanon and Turkey each host more than 130,000 registered refugees, and relief workers predict the numbers will only increase as violence escalates around the capital Damascus.

Mirroring Syria’s youthful population, almost 65 percent of Jordan’s camp residents are newborns and young children.

“Every night we are getting children as young as four days old, six days old, one week, two weeks old, and it’s a real struggle to try to make sure that everyone survives,” said Andrew Harper, Jordan head of the United Nations High Commissioner for Refugees (UNHCR).

“Women are giving birth on the border, and people are coming across pregnant. It’s a situation where we just need to redouble efforts, particularly as we move into winter, because you have hundreds of pregnant women who cross the border,” Harper said.

Families often send the most vulnerable to safety, he added, so alongside the very young in Zaatari are many older refugees. “Last night we had a couple who were 97 years old,” he said.

“CHILDREN’S CAMP”

Along the main road in the middle of the camp’s muddy and gravel streets, children of all ages race around the makeshift market place that sprang up after the camp opened in July.

Many families join in, out of enterprise or necessity, selling everything from hot falafel to household goods, old clothing and fresh vegetables.

“It’s a children’s camp. You walk into it and there are children everywhere. It’s in your face. The male adults are staying behind, and a woman comes with 10 children without her bread earner,” Mobaslat added.

In one of several UNICEF-run playgrounds, among seesaws, swings and volunteers giving music lessons, the scars of war are fresh in the minds of most children.

“I long for my home, and I hope Bashar falls to get back to my home. It’s much better than here, where we are humiliated,” said Mohammad Ghazawi, 12, who came to play after a break from selling cheap cigarettes.

Their elders complain that two thin blankets per refugee distributed in recent weeks were not enough to warm them in tents that let in rain water despite zinc reinforcements and waterproof layers that have helped insulate them.

“Kids are dying from cold and lack of blankets. My kids shiver at night, and one has constant diarrhea,” said Mohammad Samara, 46, who fled heavy shelling in the southern Syrian town of Busr al-Sham in October with his wife and four children.

Carsten Hansen, country director for the Norwegian Refugee Council (NRC), which has set up a heated tent that receives families on arrival, says much progress has been made to help distribute aid.

“Everybody is trying to mobilize resources … in order to react to bigger numbers and a huge influx,” Hansen said, adding that 6,000 gas heaters had been airlifted to Jordan to help heat the tent camp.

FROM CRISIS TO DISASTER?

Harper said UNHCR was working to prevent “this humanitarian crisis becoming a major disaster”. But he said that while aid teams were racing to improve conditions at Zaatari, there were 100,000 other registered refugees living outside the camp and probably another 100,000 unregistered, whose living conditions were not improving.

In Lebanon, too, host to 154,000 refugees, many face a bleak winter, and aid workers expect their numbers to more than double by the middle of next year.

In the Bekaa Valley town of Bar Elias, a woman from the northern Syria province of Idlib says her home for the last year has been a wooden shack with only plastic sheeting to protect from the rain. Plastic bags are stuffed into the roof as extra insurance against leaks. “There is no water, no electricity, no school for my kids,” she said in a croaky voice.

“My husband is sick. The situation is very bad.”

Mads Almaas, NRC country director in Lebanon, said many more may flee Syria over the winter to escape worsening conditions there, putting even greater strain on relief efforts.

“The violence will not only continue but also get worse. And even in the increasingly likely event of the fall of Assad, we don’t think the violence will end,” he said.

Almaas said the United Nations would launch a regional response plan on Wednesday anticipating a total of 300,000 registered refugees in Lebanon by mid-2013. “At first we thought it was too high. Now we are concerned it is too low,” he said.

In Turkey, which hosts 136,000 refugees, camps for the most part have facilities such as portable electric heaters, and refugees receive three hot meals a day from the Red Crescent. But temperatures can plunge below freezing in the rugged terrain along the 900 kilometer (560 mile) border with Syria during the winter months, and rain can be torrential and cause flooding.

Overcrowding remains a concern, with extended families cramped in single tents and ever more refugees arriving as fighting across the border drags on.

Across the region, aid workers fear an explosion in violence could leave them seriously overstretched.

“Right now funds are sufficient. What is a challenge is if we get any shocks, something like 5,000-10,000 refugees arriving (in Lebanon) in a matter of hours,” Almaas said.

If fighting swept through the center of Damascus, thousands of Syrians could flee to the Lebanese border in a matter of hours. “For that, we are not prepared as the NRC. I also question the international community’s capacity.”

(Additional reporting by Oliver Holmes in Beirut and Nick Tattersall in Ankara; Editing by Dominic Evans and Will Waterman)

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Cinnabon in Tripoli: Libya Opens Up to Foreign Business

After 42 years, the country formerly known as the Great Socialist People’s Libyan Arab Jamahiriya is getting its first taste of consumer capitalism in an unlikely form: sweet, sticky cinnamon rolls. Cinnabon, the Atlanta-based bakery chain, is at the vanguard of a potential business boom in the North African country, which deposed dictator Muammar Qaddafi last year in a bloody civil war. In July the unit of Focus Brands became the first U.S. franchise to open since the revolution, with a two-level Tripoli outlet. It’s become a popular destination in a city with few diversions for residents.

The shop on Tripoli’s version of Fifth Avenue

Cinnabon’s bet on Libya—it plans to open at least 10 new locations over the next five years—shows the perils and potential of this wealthy new consumer market, which is being eyed by a growing number of foreign companies. Yes, Libya has a rickety electricity grid and few formal property rights. And due to ongoing sectarian violence, it remains a dangerous place. But the country sits atop Africa’s biggest oil reserves, which may generate as much as $ 55 billion for the state oil company this year. That means there are plenty of well-off locals and expats who can afford to pay for a Western-style sweet.

Photo illustration by 731; Photograph by Getty Images

The country is a less incongruous place for Cinnabon than one might expect. Syrupy treats like baklava are beloved in Libya, as in other Arab countries, so local palates are ready-made for the chain, explains Mike Shattuck, president of Focus Brands International. What’s more, in a Muslim country where bars are almost nonexistent, young people need places to hang out. Finally, an influx of investment from Persian Gulf property developers means “down the road there’s no question there will be a big mall culture,” providing the natural habitat for future Cinnabon outlets.

For now the Tripoli store is very much a foreign oddity. Positioned as more upscale than the chain’s food court roots in the U.S., the shop has become a fixture on Gargaresh Road, Libya’s Fifth Avenue, where it attracts an affluent clientele. The prices are First World as well: A cinnamon bun and a regular coffee cost 6.50 dinars, or about $ 5.15, close to the price in the U.S.

The franchise owners, brothers Arief and Ahmed Swaidek, first planned to open Cinnabon in 2008, but bureaucracy delayed completion of the store until January 2011. A splashy grand opening was abandoned when revolution broke out that February. Nonetheless, news of the shop spread quickly after its opening this July.

On a recent evening the store was busy with young customers, about two-thirds of them women, who tend to avoid the traditionally male-dominated coffeehouses. Unlike at most Western restaurants, all of the staff are male. In addition to the chain’s signature pastries, it serves Carvel ice cream (another Focus Brands product), sandwiches, salads, and cakes. An upstairs lounge caters to patrons who want to linger, and the shop stays open until about 11 p.m. to accommodate the local preference for late-night snacking. All that activity can push Libya’s patchy infrastructure to the limit: The utility in Tripoli can’t always cope with two floors of full-blast air conditioning. The franchise relied on a generator to keep things cool during the busy Ramadan season, says store manager Ehab Abdelo-Meged.

Serving Middle Eastern customers isn’t new for Cinnabon, whose portfolio of 900 worldwide locations includes outlets in Kuwait, Jordan, and Egypt. It also has experience operating in less-than-salubrious locales such as Pakistan and El Salvador. Still, Libya presents particular challenges. Security in Tripoli is shaky. In August, Salafi Muslim militants demolished a downtown mosque of the more moderate Sufi sect with bulldozers. Libya has yet to charge anyone with the murders of U.S. Ambassador Chris Stevens and three of his officials, killed when the Benghazi consulate was stormed in September. Kidnappings, including that of the head of Libya’s Olympic Committee in July, are a fact of life. And gunfire can be heard most nights in the capital.

Shattuck points to more mundane concerns, such as sourcing ingredients (the majority are imported from the U.S. on a quarterly basis) and finding a reliable way to pay suppliers in a country that still lacks a modern banking system. “There are a lot of institutional needs still, from our perspective. But we feel things are moving in the right direction,” he says.

Others are optimistic as well. Companies from France Télécom (FTE) to Qatar National Bank (QNRK) are looking to invest in Libya as Prime Minister Ali Zaidan’s new government plans to kick-start asset sales, privatize state companies, and break up monopolies. “I’m 10 times more bullish on Libya than I was at the end of 2010,” says Abdulla Boulsien, a former Merrill Lynch (BAC) investment banker who helps run Tuareg Capital, a Libya-focused private equity firm. So Cinnabon is unlikely to be the sole refuge for Libyans craving an American-style dining experience for long. “It’s a virgin land,” manager Abdelo-Meged says of the country. “Any franchise coming here will be a success.”

The bottom line: Libya, with 6 million citizens and $ 55 billion in state oil revenue this year, is attracting Western investments like Tripoli’s new Cinnabon cafe.

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Nigeria governor, 5 others die in helicopter crash

LAGOS, Nigeria (AP) — A navy helicopter crashed Saturday in the country’s oil-rich southern delta, killing a state governor and five other people, in the latest air disaster to hit Africa’s most populous nation, officials said.

Nigeria‘s ruling party said in a statement that the governor of the central Nigerian state of Kaduna, Patrick Yakowa, died in the helicopter crash in Bayelsa state in the Niger Delta. The People’s Democratic Party’s statement described Yakowa’s death as a “colossal loss.”

The statement said the former national security adviser, General Andrew Azazi, also died in the crash. Azazi was fired in June amid growing sectarian violence in Nigeria, but maintained close ties with the government.

Yushau Shuaib, a spokesman for Nigeria’s National Emergency Management Agency, said four other bodies had been found, but he could not immediately give their identities.

The crash occurred at about 3:30 p.m. after the navy helicopter took off from the village of Okoroba in Bayelsa state where officials had gathered to attend the burial of the father of a presidential aide, said Commodore Kabir Aliyu. He said that the helicopter was headed for Nigeria’s oil capital of Port Harcourt when it crashed in the Nembe area of Bayelsa state.

Aviation disasters remain common in Nigeria, despite efforts in recent years to improve air safety.

In October, a plane made a crash landing in central Nigeria. A state governor and five others sustained injuries but survived.

In June, a Dana Air MD-83 passenger plane crashed into a neighborhood in the commercial capital of Lagos, killing 153 people onboard and at least 10 people on the ground. It was Nigeria’s worst air crash in nearly two decades.

In March, a police helicopter carrying a high-ranking police official crashed in the central Nigerian city of Jos, killing four people.

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8 Christmas Light Shows That Will Rock Your Stockings Off

1. A Christmas Rock Medley

This mind-blowing video comes from South Dakota. Its creator uses the show’s publicity to help raise money for the Make-a-Wish Foundation.

Click here to view this gallery.

[More from Mashable: 63 Digital Media Resources You May Have Missed]

The winter celebration of the evergreen tree is not a modern tradition — it extends back to pre-Christian times and to cultures all over the world.

Maybe your holiday tradition involves stringing thousands of lights across your property for a majestic arrangement. Or perhaps your family just tours the neighborhood to see everyone else’s exhibits. Either way, YouTube is here to provide some sensational seasonal light shows for your viewing and listening pleasure, from festive homes all across the country.

[More from Mashable: 10 Adorable Dog Outfits for the Holidays]

Enjoy these creative displays, and maybe draw a little inspiration for next year’s decorations. If you’re worried about complexity, learn to do it yourself.

Have you seen an unforgettable holiday display we forgot to include? In the spirit of giving, let us know about it in the comments section below.

This story originally published on Mashable here.

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Sundance film “End of Love” finds distributor

LOS ANGELES (TheWrap.com) – Gravitas Ventures and Variance Films have acquired all North American rights to writer-director Mark Webber‘s drama “The End of Love,” the companies announced on Thursday.

The father-son drama, which debuted at this year’s Sundance Film Festival, stars Webber alongside Shannyn Sossamon (pictured), and Webber’s real-life son Isaac Love, and features appearances by Michael Cera, Jason Ritter, and Amanda Seyfried.

The film tells the story of struggling actor Mark (Webber), who is forced to grapple with his inability to grow up when the mother of his two-year-old son Isaac suddenly dies. As he kindles a relationship with a young single mother, Mark begins to realize that he can no longer remain in denial about the real-life consequences his choices have on Isaac.

Gravitas Ventures will debut the film across all major video on demand (VOD) platforms on January 21, 2013 with a theatrical release from Variance Films beginning March 1 2013 in select markets.

“Propelled by the authenticity and intimacy of the performances, our acquisition team was unanimous that ‘The End of Love’ was one of the strongest films not only of Sundance, but of all of the films we saw last year,” said Nolan Gallagher, founder and CEO of Gravitas Ventures.

“I’m thrilled that ‘The End of Love’ has found a home with Gravitas and Variance,” said Webber. “In the rapidly changing landscape of how films are seen, these two companies are at the forefront of embracing that change.”

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Mental health toll emerges among Sandy survivors

NEW YORK (AP) — The image of his brother trapped in a car with water rising to his neck, his eyes silently pleading for help, is part of a recurring nightmare that wakes Anthony Gatti up, screaming, at night.

Gatti hauled his brother out of the car just in time, saving his life at the height of Superstorm Sandy. The two men rode out the hurricane in their childhood Staten Island home and survived. But weeks afterward, Gatti still hasn’t moved on.

Now he’s living in a tent in the backyard, burning pieces of furniture as firewood, refusing to leave until the place is demolished. Day and night, he is haunted by memories of the storm.

“My mind don’t let me get past the fact that I can’t get him out of the car. And I know I did,” Gatti said, squeezing his eyes tightly shut at the memory. “But my mind don’t let me think that. My mind tells me I couldn’t save him, he dies.”

As communities battered by Sandy clear away the physical wreckage, a new crisis is emerging: the mental and emotional trauma that storm victims, including children, have endured. The extent of the problem is difficult to measure, as many people are too anxious to even leave their homes, wracked by fears of wind and water and parting from their loved ones. Others are too busy dealing with losses of property and livelihood to deal with their grief.

To tackle the problem, government officials are dispatching more than 1,000 crisis counselors to the worst-hit areas in New York and New Jersey, helping victims begin the long work of repairing Sandy’s emotional damage.

Counselors are assuring people that anxiety and insomnia are natural after a disaster. But when the trauma starts to interfere with daily life, it’s probably time to seek help. And in a pattern that played out in New Orleans and the Gulf Coast after Hurricane Katrina in 2005, symptoms may only get worse as victims transition from the initial shock to the disillusionment phase of the recovery.

“Folks are starting to realize that they may be in this for the long haul,” said Eric Hierholzer, a commander in the U.S. Public Health Service. “And things aren’t necessarily going to get better tomorrow or next week.”

At St. John’s Episcopal Hospital in Far Rockaway, the psychiatry department has recorded a 20 percent increase in walk-in patients since the storm hit, with residents reporting the whole gamut of stress-related symptoms. Anxiety. Insomnia. Panic attacks.

Local schools have referred 25 percent more children than usual to the hospital’s outpatient mental health programs.

“The children are very, very traumatized,” said Fern Zagor, who runs the Staten Island Mental Health Society. “They have a hard time making sense of this sudden change in their world. It’s frightening to them.”

A 5-year-old girl who was pulled from floodwaters clinging to her father hasn’t been able to attend kindergarten since the storm, Zagor said, because she’s too traumatized to be parted from him now. An 11-year-old boy is working with counselors after floating in water up to his neck on the second floor of his home for several hours before being rescued.

“This child has said he worries about rain,” Zagor said. “He worries about whether he’ll ever want to swim in a swimming pool again.”

The society is among many mental health providers who are working with Project Hope, a New York crisis counseling program funded by an $ 8.2 million Federal Emergency Management Agency grant that has just begun sending counselors to local communities. New York Gov. Andrew Cuomo’s office estimates the program will help more than 200,000 people.

Project Hope Counselor Yomira Natera has been seeking out storm victims who don’t speak English as their first language.

“We’ve seen an increase in substance with folks who may have language barriers,” she said. “Who may be frustrated with the system, who find it difficult to communicate.”

At least 20,000 people have so far made contact with counselors from the New Jersey Hope and Healing Program, which has dispatched hundreds of state-trained disaster crisis response counselors into the storm zone. The state also launched a hotline for people to call and talk to a counselor.

In Union Beach, N.J., a working-class enclave on Raritan Bay, Kathy Parsells helped coordinate deliveries volunteered at a FEMA recovery center on a recent afternoon, helping to coordinate deliveries. Her daughter and grandchildren had to be rescued during the storm.

“I’m OK,” she said, stifling tears. “My grandsons have nightmares. My grandson, the first night, was screaming: ‘It’s coming up the stairs.’”

Jeannette Van Houten, who lost her home in Union Beach, said in a telephone interview that she feels like she’s going through the same stages of grief that she endured when her niece was murdered in 2008.

“I have days that I can’t put a thought together. Like you start talking and you forget what you’re saying,” said Van Houten, who sleeps just two or three hours on a good night nowadays. “And the numbness, like you look at things that are happening around you, but you’re not part of it.”

The Rev. Matthew Dowling, a pastor at the Monmouth Church of Christ in Tinton Falls, N.J., volunteered as a crisis counselor in the days after the storm and heard a lot of survivor’s remorse from people who were more fortunate than their neighbors. But there was also a great deal of frustration.

“When FEMA arrives, they think everything is going to be fixed,” Dowling said. “The reality is it’s going to take months and months to get back to normal. Just like the steps of grief there’s anger at the new normal.”

Distress calls to LifeNet, New York City’s local crisis hotline, doubled during the first few weeks after the storm hit, averaging more than 2,000 calls per week from people who were angry and worried that basic needs — food, clothing, shelter — had not been met.

Officials are now preparing for a new wave of calls from people struggling with depression and other mental health issues, said Christian Burgess, director of the Disaster Distress Helpline, a national crisis hotline run by the federal government that provides a network of trained counselors in the aftermath of a major disaster.

Coming to grips with the loss of everything she owned has been difficult for Carol Stenquist, who stood outside borough hall in Union Beach, nervously dragging on a cigarette and crying.

“I have anxiety over it. Even when I lay down at night I feel my heart palpitating with the loss of everything,” said Stenquist, whose home was destroyed. “I was there for 20 years.”

She thinks she needs to talk to a professional counselor, but hasn’t sought one out yet.

“I’m kind of afraid that the emotional stuff I feel now is just part of what I’m going to feel when it’s over,” she said. “I’ve had my breakdowns, cries, feelings of depression. I’ve had all of that.”

On Staten Island, volunteers have been quietly stopping by Anthony Gatti’s tent to check in on him during his long vigil, dropping off boxes of cereal and cans of coffee. A volunteer therapist tried to talk him into leaving, but to no avail. He spends his days patrolling the property for looters and gazing at photos of the storm’s destruction on his laptop.

“I keep trying to make him understand. It’s a lot of wood and metal and pipes, that’s all it is,” said his mother, Marge Gatti. “You’ve got to get numb. You gotta get tough. If I’m not numb, I can’t function.”

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