The Summer of our Discontent

June is the cruelest month, at least in western Washington.
After a long winter and a short spring, hopes for warmer weather are often
dashed by long stretches of even more cold and rain.

And so it is with the economy. The current recession, now 18
months old, has lasted longer than any downturn since the Great Depression. The
occasional ray of hope-better housing sales, for exampleis soon shut out by
the dark clouds of rising unemployment.

Uncertainty is the bane of business. Consider our embattled
energy startups. A year ago the wind was at their backs. They were the ones with the technology
to tackle the dual evils of rising oil prices and global warming, and investors
were eager to support them. Now, as oil prices fluctuate wildly, the money has
dried up. Some energy startups may not survive.

Its easy to say, we have nothing to fear but fear itself,
but fear is pretty scary these days. Many of us wonder if our economy will ever
return to normal.

But then, whats normal? Certainly not the two decades of
virtually uninterrupted growth we had in the 80s and 90s. During those years
it was as if one of our glorious summers had lingered into December. Some of us
began to act as if winter had been banished altogether. We prospered as we
supplied a growing middle class around the world with ever more lattes, jets,
apples and software.

Now as we suffer though these cold, wet days we can think
nostalgically of the past, or we can look ahead. July and August are bound to
be sunny. They usually are. The good news about the return of the business
cycle is that eventually the economy will head back up. Thats the way business
cycles work.

In the meantime, we have to make the best of what we have.

Our new state commerce secretary, Rogers Weed, is an
optimist who likes to focus on opportunity. He is aggressively pursuing federal
money for the states energy sector, which, Weed tells us, could be the basis
of a new industry segment in Washington. He also wants to build a strong
relationship between government and business to improve the business climate of
the state.

This kind of cooperation, the understanding that we are all
in this together, is important to our states future. In this issue, we have a
story about how Ted Baseler, CEO of Ste. Michelle Wine Estates, helped smaller
wineries in the region through tough times because he recognized that his
companys success depended on the success of a thriving Washington wine
industry.

But we also have a tragic story of how the Blethen family,
through a series of poor business decisions, weakened the financial viability
of the venerable Seattle Times. The
paper is important to the community, and we hope some way can be found to keep
it alive until the economy returns to health, as we know it will, as surely as
summer follows spring.

Leslie D. Helm

Editor