Posted inPhoenix

Cities and ‘markets’

Bashas' filing for Chapter 11 bankruptcy protection is a sad and telling marker for Arizona. You can forget about that downtown Phoenix store. And you can probably forget about Bashas', one of the state's last large, locally based and locally rooted companies.

Today's grocery company was founded in 1932, in the Great Depression, although its Arizona origins go deeper. That it may succumb in the Great Disruption is a tragic, but perhaps fitting bookend. I think of all the times I was out amidst the worst examples of unsustainable, desert-profaning sprawl, be it Gold Canyon, Hunt Highway or the insipid Verrado that was prematurely anointed the future by David Brooks of the New York Times. There would be a Bashas'. As the sprawl Ponzi scheme has collapsed, its not surprising that it takes down another vulnerable player.

This take-down is sadder than most. Bashas' has a great story: immigrant success, ties to Chandler when it was a real town, and keeping its base there even as the anodyne subdivisions encroached. Eddie and Nadine Basha have been civic leaders in a place where they are more rare than shade in mid-summer. This is an unforgiving business with razor-thin margins. If greater Phoenix ends up losing its only locally owned grocery chain — as, say, A.J.'s is sold off — it will only deepen the deep-bore mineshaft that is the hole the place is in.

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Posted inUncategorized

GM and Chrysler: Hasta la vista, baby

In earlier posts, I've urged federal help for the automakers. It would be a calamity to lose this manufacturing backbone, which especially props up what's left of the middle class in places like Michigan and Ohio. There was a large "if," however — if the automakers fundamentally changed their business models to focus on green technology and building transportation for the 21st century beyond automobiles, particularly transit and rail.

Not surprisingly, none of that is coming true despite GM already receiving $13.4 billion in federal loans and Chrysler getting $4 billion. About the best GM can do is phase out the evil Hummer. Otherwise, it's business as usual and worse: cut 47,000 jobs worldwide, shut five more U.S. factories and phase out Saturn, the brand launched in the late 1980s as the reinvention of General Motors.

There comes a time to let go. It will be painful, but it's time. We need to let GM and Chrysler fail.

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Posted inPolitics: National

Making serious economic reform, part I

The candidates are giving speeches on the economy, ranging from Obama’s correct diagnosis that corporate political power has driven much destructive policy to Clinton’s programmatic wonkishness to McCain saying speculators should receive no federal bailout. Unfortunately, he means individuals who face foreclosure, not the big financial institutions that caused the housing and mortgage collapse.

The nation faces more economic challenges than at any time since the Great Depression. But overall America is so wealthy that the stresses and dangers are concealed; their most severe consequences may not be felt for decades. Nobody has all the answers, but I will lay down some markers to watch. These are based on history, the test of time and the reality of today’s economy. I wonder if the candidates will address them (we already know McCain’s answer)?

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