on the cover / By Hank Sims

Bankers’ Lunch: Second Course

In which our economy-watchers discuss the Humboldt County workforce, the regulatory burden and — again — the undead railroad

(April 3, 2008) With the national economy in the tank and the local election season just around the corner, we thought it time to reconvene our panel of high-finance pundits to discuss the state of affairs here on the ground.

Patrick Cleary, 49, spent 17 years as an investment banker on Wall Street — 10 with Chase Manhattan and seven with the Trust of the West Company — before moving to Humboldt County 10 years ago. He is the owner and general manager of Lost Coast Communications, which operates three local FM radio stations: KHUM, KSLG and “The Point.” He serves as chair of the Headwaters Fund Board, a county agency that oversees the $22 million in economic development funds received by the county in 1997 as part of the deal between Pacific Lumber Co. and state and federal government over the Headwaters Forest.

GALLERY >

Thomas Bruner, 38, has a masters degree in international finance from Thunderbird, the Garvin School of International Management, one of the most prestigious business schools in the country. After graduation he moved to Seattle, where he worked as a consultant for a variety of financial companies, including an investment bank and a venture capital firm. He is the co-founder of LiveListings.com, a business-to-business firm specializing in the automotive parts market. Since moving to Humboldt County, he has been a lecturer in the HSU Department of Economics.

As it did two years ago — see “Bankers’ Lunch,” Feb. 2, 2006 — the panel met for lunch at Curley’s Grill, Ferndale. Bruner had the Chinese chicken salad and a light beer. Cleary had the ahi tuna with salad. The Journal had the catfish sandwich and fries.

State of the County

NCJ: Looking back at the last time we talked, here. We talked a lot about lumber — the timber economy. Marijuana. Humboldt State, education. A lot of those things have changed, and most of them for the worse, in the last two years. The timber economy has gone way down, almost to zero.

Cleary: Well, you’ve had two things happen. You’ve had the national slowdown in house-building, which has particularly impacted the Douglas fir market. A little less for redwood. You’ve had the Pacific Lumber bankruptcy. The Pacific Lumber bankruptcy has had a very large impact on the local economy. Fortunately the trees are still growing, so it shouldn’t be a prolonged thing.

But, you know, I believe the last numbers I saw were interesting. The level of timber harvest is not any lower than it was in the early ‘80s. Now, the early ‘80s were not a good time in Humboldt County — I’m not trying to say that. But we’ve been through these cycles before with timber. The remarkable difference is that in the early ‘80s the unemployment rate was close to 20 percent.

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