► On the Record

“The widespread and growing lack of health insurance in Washington state is hurting families, communities and our state’s economy in ways that we can no longer afford to ignore.”

– Washington state Insurance Commissioner Mike Kreidler. A commission-sponsored report released Thursday predicted the number of uninsured Washingtonians would soon hit one million, costing the state nearly $1 billion in uncompensated medical care.

Reporter's Notebook

- Steve McDonagh can be contacted at smcdonagh@vbjusa.com

Taking the good news with the bad

It’s not all Gloom and Doom out there.

While the bottom of the recession has been reached at least seven times in the national media and the term “jobless recovery” is quickly becoming a punch line to jokes that are only funny to those who are still employed, the economy really isn’t as bad as it was just a year ago.

Don’t get me wrong: it’s still bad out there and could get worse, depending on how certain future events unfurl – with Mother Nature having a say in things, I am sure.

But more and more often, I hear from business people that are doing better or at least are a little more optimistic about the future. Mind you, no one speaks publicly about this because there are plenty of businesses still teetering on the edge, making those who are doing well right now or starting to see an upswing in orders a little loathe to talk.

However, I did speak with the owner of a local IT company last week who told me that they had their best October ever this year. Another local business owner said he is busier than last year with fewer and shorter gaps between being busy.

At the VBJ, we try to bring you the stories and information important to you. What readers have told us in the past is that they want to know who is doing well and to the extent they are willing to share the secrets to their success, or at least their best practices, for the benefit of other members of the business community.

Our readers also tell us they want to hear about the businesses that don’t make it, with an emphasis on the “how” and the “why,” so that maybe they can learn from the misfortune of others in order to avoid their own.

As we continue to cover this turbulent and trying business environment, the VBJ occasionally receives emails and comments about running “negative stories.” However, we will continue to tell the stories we think our readers want. More often than not, it is a business success story. But we would be remiss if we only reported the positive and skipped the story on the store that failed on Main Street, closed their doors on 99th, or downsized their space out on 192nd.

So tell us what you think, what you like and what you want to know. We’ll do our best to bring it to you in a way that informs, educates and empowers our business community.

Friday Fish Wrap

Paul Speer retired but NOT, again, Congrats Paul……Gina Bacon back at the Chamber and communicating…David Lawson, a Class act…..Dennis Pavlina serving up Bones and recommendations.…Jim Jacks demonstrating his Tao of Pooh…...Tom Hunt paying off and hanging with the young dogs.. …Ralph Stevens – eerily quiet… TVD hawking phones and counting touchdowns….Robert Stewart first one in the pool ….Temple Lenz taking a break and looking for the next one… …Courtney Givens working and celebrating the Under 40 luncheon - well deserved and THANK YOU! …… Bob Dingethal every week is a bye week…..Bye, Bye.

Business Around the Northwest

U.S. manufacturing hits growth spurt, Kitsap Peninsula Business Journal

Papa Murphy’s up for sale, Portland Business Journal

Stimulus health care coverage deadline looms for laid-off workers, Idaho Business Review

► On the Record

“My sense is that we have somewhat stabilized. There is the sense that we’ve finally hit bottom.”

-- Deborah Ewing, vice president of Vancouver commercial real estate brokerage Eric Fuller & Associates, reacting to news of the $8.3 million sale of Quad 205 Business Park on Tuesday.

Reporter's Notebook

Paul Leonard can be reached at pleonard@vbjusa.com

An apology – and cash – from Goldman Sachs

They were more than participants in the largest market meltdown in history – they were pioneers in the creation of the complex financial instruments, such as credit default swaps, that helped make it happen.

And now, more than a year after the crash froze credit lines for thousands of small businesses, including many in Southwest Washington, Goldman Sachs says it’s sorry.

The investment house-turned-banking giant announced today that it would launch a $500 million initiative to help 10,000 small businesses. The fund will be partly run by Goldman majority shareholder Warren Buffett, who said the program would provide “greater access to know-how and capital – two ingredients critical to success.”

Access to capital critical to success? Thanks for the tip, Mr. Buffett.

The continuing unavailability of credit for established small businesses locally has to be the most puzzling aspect of this year’s economic downturn – even more so given President Obama and Treasury Secretary Geithner’s almost daily pronouncements of victory over the financial crisis.

To be sure, $200 million will go far to help some cash-starved businesses – even perhaps a few here in Clark County – ramp up spending and start hiring again.

However, here’s another figure to consider: $10.5 billion.

That’s the amount of small business lending sucked out of the system in the last six months by 22 of the nation's largest banks – many of which were recipients of taxpayer money via the Troubled Asset Relief Program. Long an investment and trading institution, Goldman joined the savings-and-loan ranks as a condition of its own bailout package late last year.

So let’s put these figures in perspective: if $10.5 billion is a gash requiring stitches, then $200 million seems more like a Band-aid.

However, cash wasn’t all Goldman had to offer today. Nearly 14 months after an unregulated derivative and credit default swap trading market helped almost bring the entire financial system to near collapse, this apology: “We participated in things that were clearly wrong and have reason to regret,” said Goldman CEO Lloyd Blankfein today in New York.

Thanks Lloyd.

As for Warren Buffett’s unapologetically naïve comments regarding capital flows to small businesses? Don’t worry, we won’t take it personally, Warren – we’ll still take your money.

Business Around the Northwest

Assurances from FDIC, South Sound Business Examiner

Horizon Bank accepts VP Hoekstra’s resignation, Bellingham Business Journal

The world will feed the world, Idaho Business Journal

► On the Record

“Just because your voice reaches halfway around the world doesn't mean you are wiser than when it reached only to the end of the bar."

– Veteran radio and TV news journalist Edward R. Murrow (1908-1965)