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Dow closes below 8,000

Wall Street hit levels not seen since 2003 as the fate of Detroit's Big Three automakers and the economy disheartened investors.

By SARA LEPRO
The Associated Press

NEW YORK — Wall Street hit levels not seen since 2003, with the Dow Jones industrial average falling below the 8,000 mark, as the fate of Detroit's Big Three automakers and the economy disheartened investors.

Read the story here

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Two questions readers:

1) What are you doing to console yourself about retirement fund losses (if you are affected)?

2) On another economic note, do you think Washington DC should be helping out the auto-makers?

The state is starting to cut the budget to try to close a now five-billion-dollar gap.

Chosing to bypass asking pan-handlers in Pioneer square for the money, they went directly to the second poorest group of citizens.... college students.

Yep, tuition and fees are going up, and opportunities will be going down.

Here is the story

Our own Renton Technical College will be one of these institutions wrestling with priorities in the face of state funding reductions. Already, they have been forced to identify cutbacks which are producing grief in the community (such as closing their therapeutic swimming pool.)

Today the Seattle Times published an upbeat story about a local family doing just fine in the tough economy. Hard work, smarts, and good values were keeping them afloat. The nicest part...they are an "average" Renton family!

When I read the article it reminded me of a quip that I used to hear from Donald Custer, who is a frequent visitor to Renton City Hall and has the distinction of having been Renton's youngest-ever mayor back in 1964. When Don is teased about Renton being less swanky than Bellevue, Don always responds "Hey, at least Renton is paid for!"

These words make even more sense in today's economy.
Here is the story

Here is the latest update from our Economic development department. We will deeply regret the loss of jobs, and the loss of prestige that comes from manufacturing the best 18-Wheelers on the highway. Let's hope Kenworth maintains the option of restarting in Renton when the economy improves.

My sincere sypathy to you readers that are directly affected by these layoffs. The economy is really going in the tank right now. Those of us in government will do all we can to improve it.

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>>> Alexander Pietsch 11/14/2008 11:23 AM >>>

yes. Thanks. We've been in touch with Kenworth. The company is characterizing it as a temporary reduction in the production of on-highway trucks. They still will make other off-highway trucks. This is a big cut though. They last reported 1,067 FTE in Renton.

Alex Pietsch
Administrator
Dept. of Community & Economic Development
City of Renton




>>> Julia Medzegian 11/14/2008 11:20 AM >>>

Ack! Im assuming Jay, Marty, Alex, etc. know, but just in case . . . . http://seattlepi.nwsource.com/business/387874_kenworthcuts15.html

Kenworth to lay off 421 workersBy

BILL VIRGIN
P-I REPORTER
Kenworth Truck Co. plans to lay off more than 400 workers and end most truck production at its Renton plant as a two-year slump in truck sales moves into a third.Don Hursey, directing business representative for Machinists District Lodge 160, said he was told by officials of Paccar Inc., Kenworth's parent, that 329 union and 92 management employees will be laid off. The plant will continue to produce two of the large off-road trucks used in such industries as mining. But production of conventional highway trucks will be shifted to Kenworth's Chillicothe, Ohio, plant.The layoffs and production cuts are effective Jan. 19.A Kenworth spokesman confirmed that the Renton plant is curtailing production and laying off workers, but did not give numbers.Kenworth said the cuts are due to a slowing economy and truck market. Heavy-duty truck sales were 322,000 in the U.S. and Canada in 2006, but fell to 176,000 in 2007 and are expected to be about 2008 this year.

Rich Zwicker

While I'm trying not to think about it too much, it's tough not dwell a little on my retirement fund (401-K) losses from the last year--the last few months in particular. Everything looked so great a year ago; like many other people at my day job, I even kicked around ideas of trying to retire when I hit 55. Now, who knows?

This article in the New York Times explains that my pondering is nearly universal for those of us that have been in the workforce for a while.

How are the rest of you Rentonites feeling? Do you feel prepared for possible tough times ahead? Do you think you will be able to rebuild before your planned retirement? Will you be working until age 95?

The discussion on another thread got me wondering about other possible outcomes of our highland renewal debates two years ago. I think fate, and uppity citizens, may have helped us dodge a bullet; credit has dried up, property owners are losing equity, and and builders are taking losses on their projects.

Here are my thoughts on the topic.

Please don't miss this story on ABC News.

There's nothing like seeing the Lehman Brother's Boss seething with anger at the government for not bailing out his company AFTER he had taken $500 million in compensation over the last eight years.

You could not write fiction like this... no one would believe it.

Southwwest Airlines is reducing it's 2009 aircraft orders.

Fortune Magazine points out we will be see lots of renewed debate about regulation in the coming years as a result of this latest bailout. The challenge may be to keep the pendulum from swinging too far the OTHER way now, as people begin pushing to regulate everything.

Here is a quote from the story:

Union leaders like the AFL-CIO's John Sweeney suddenly sound as if they're in the mainstream of public opinion with statements like this: "One thing is certain. No one - no politician, no investment banker, no television commentator, no economist - should be able to say again with a straight face that here in the United States we just let markets do whatever markets do and everything works out for the best."

Here is the article.

Apparantly, the White House "bailout" meeting did not go quite as well as first reported today.

Click here for the Market Watch story.

Tomorrow will be another wild day on Wall Street. I'm hopeful that I will still be able to retire by age 75, but we'll see after the market opens.

"And it is pretty scary, this economy, don't you think? Doesn't it make you yearn for the good old days we were just worried about oil hitting 150 bucks a barrel?

And this is what I love about this whole thing. Congress said today, "The days of getting money just for the asking are over!" And then they ask for $700 billion.

See, you know the way a bailout works? Here's the way a bailout works. A failed president and a failed Congress invest $700 billion of your money in failed businesses. Believe me, this can’t fail. "

Renton and Everett aircraft orders lead the nations strong durable goods orders, providing great news for both Wall Street and Main Street. Record-breaking backorders of Renton's own 737 aircraft, which promise years of production in the future, are clearly helping our NATIONAL economy. This Florida television station even featured a photo of our own Renton factory when reporting this news from the Associated Press. Here is the Link.

This is a great reminder how important aerospace is to our region and our nation.



In this May 20, 2008 file photo, Boeing Co. 737 airplanes are shown lined up during assembly in Renton, Wash. Orders for big-ticket manufactured goods turned in a second consecutive strong monthly performance in July, a far bigger-than-expected gain led by a huge jump in demand for commercial aircraft. (AP Photo/Ted S. Warren, file)

There are just too many things I want to say about this, but I'll let you readers do it instead. Please feel free to leave your comments!
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Exxon Mobil posts $40.6 billion annual profit
Oil giant breaks record for largest annual profit by a U.S. company


HOUSTON - Exxon Mobil Corp. posted the largest annual profit by a U.S. company — $40.6 billion — on Friday as the world’s biggest publicly traded oil company benefited from historic crude prices at the end of the year.

Exxon also set a U.S. record for the biggest quarterly profit, posting net income of $11.7 billion for the final three months of 2007, beating its own mark of $10.71 billion in the fourth quarter of 2005.

The previous record for annual profit was $39.5 billion, which Exxon Mobil had in 2006.