economy

Monument to steel in Gary, Indiana
Michael Puente / Changing Gears

By Michael Puente, Changing Gears

All this week, Changing Gears has been looking at reinventing Pittsburgh. We recently heard how Detroit has borrowed some of its ideas. In its final report, they head to Gary to see if this smaller Steel Town can learn from its industrial mother, Pittsburgh. They found old habits are hard to break.

Detroit entreprenuer Judy Davids
Sarah Hulett / Michigan Radio

All week we’ve been looking at the reinvention of Pittsburgh. Now, we move west to see whether the ideas that worked there can work in other places. One such city is Detroit.

Like Pittsburgh, Detroit has always faced a challenge in convincing its talented citizens to stay. Many business owners try to buck the odds and keep their businesses in the city, only to find the hurdles too high. Others find it is simply too daunting to head out on their own.

The New York Stock Exchange
Roland Weber / Creative Commons

Update: 5:10pm

The New York Stock Exchanged closed.  AFP News reports "GM stocks closed at 34.19 dollars, up 3.6 percent from GM's initial sale price announced on Wednesday, but below session highs of 35.60 dollars a share."

Update: 3:00pm

The Detroit News reports the GM executives who attended the opening day for GM stock on the New York Stock Exchange bought hundreds of shares in the company themselves.

GM North American chief Mark Reuss called it an emotional day, saying he was proud to work for GM and thanking taxpayers for giving GM "a second chance."

The News reports the GM execs will head back to Detroit "after today's events in order to attend a private employee celebration at the company's Renaissance Center headquarters."

Update: 11:04pm

GM  executives rang the bell and played a recording of a Chevy Camaro revving its engine to open trading at the New York Stock Exchange this morning. As of this writing, the stock, bought during the IPO at $33 per share, has jumped to $35 per share in trading. Here's how it's tracking next to Ford's stock (F): 

GMC SUVs in a car lot
user ep_jhu / Creative Commons

The Center for Automotive Research released a report today that analyzed the government bailouts of General Motors and Chrysler.

$80 billion was given to the auto companies. To date $13.4 billion has been repaid.

Tomorrow the GM "initial public offering" is expected to raise another $22 billion.

The reports authors say that even if the government doesn't get all of the $80 billion back, the government's investment will still have been worth it.

The report concludes:

Timothy Geithner at the White House Correspondents Dinner in 2009
Jay Tamboli / Creative Commons

The Wall Street Journal is reporting that GM's IPO tomorrow could be a biggy:

General Motors Co. said Wednesday that it will increase the size of its initial public offering by about 30% to 478 million shares, which could make it the largest global IPO in history.

Erika Katz

Drive east from downtown Pittsburgh and you’ll pass a church. At least, it was a church.

Today, the alter has been replaced with stainless steel casks of beer, and the pews are now a bar and tables. It’s another Pittsburgh transformation. Saint John the Baptist Church is now the Church Brew Works.

It’s one of those places people tell you: you have to go when you visit Pittsburgh. So, it wasn’t a hard sell to get a bunch of young professionals to meet there.

Zach Morris / Creative Commons

When Dennis Yablonsky took over Pittsburgh's main development group last year, everyone was telling him it was time to brag.

Old General Motors Headquaters
Historic American Buildings Survey

General Motors (GM) will be in the news a lot this week, so if you sat out the GM story up until this point, here's a quick summary to get you caught up.

Today's General Motors is not your father's General Motors. The old GM went bankrupt. The company couldn't pay its bills (they had some big ones).

But instead of letting the whole company collapse, a court stepped in to reorganize the auto giant (under chapter 11 bankruptcy).

The court split the old GM in two.

User 1sock / Creative Commons

When I first got to Pittsburgh, I did something foolish.

Screen grab of New York Times web page
Screen grab from the New York Times

It's easy to criticize. Now you're in charge.

The New York Times has created a slick little interactive tool that displays different solutions to the country's projected budget deficits.

Former GM Wyoming Stamping Plant
Lindsey Smith / Michigan Radio

Michigan Radio's Lindsey Smith covered the auction at the former GM Wyoming Stamping plant. The plant closed in June 2009 as part of GM's bankruptcy.

The auction was held on Wednesday and Thursday of this week. The auctioneers said they'll sell off anything leftover today.

Smith said it was easy to get lost as she took photos of the more than 2 million square foot building. Here's an audio slideshow she put together:

A handwritten letter from President Barack Obama
Gary Zimet / Moments in Time

A woman from Monroe, Michigan made news last week when she sold her hand written letter from President Barack Obama for $7,000.

Knight, Tom
Gerry Leslie / Homeless Management Information Systems

In 2008, the state estimates there were a little more than 86,000 people without a home. Half of them were families.

Ashley Steele and her son Richard Peake
Kate Davidson / Changing Gears

By Kate Davidson of Changing Gears

Five years ago this month, a group of anonymous donors made a radical promise to Kalamazoo, Michigan. They would pay for almost every public school graduate to go to a state-supported college or university. Our Changing Gears project has been profiling towns across the region as they try to reinvent themselves for the new economy. Here, they take a closer look at the "Kalamazoo Promise."

restaurant week in GR
restaurantweekgr.com

A number of Grand Rapids restaurants are booked this weekend thanks to the new event celebrating great dining at a reasonable price.

San Chez sous chef Daryl Rector prepares for the night shift. "We've got verduras y tortas for the vegan crowd. It's a spicy black beans & quinoa cakes with roasted vegetables and this avo-cumber sauce," Rector explains. "That's a fake yogurt that we make with avocado - basically puree that, add acidity and sweetness and you can't really tell the difference between that and yogurt."

Courtesy Russ Hicks

Two big changes recently happened to Russ Hicks. His wife Carol was diagnosed with cancer and passed away.

“I tell you right after Carol died I was completely rudderless and almost berserk. There was a time, a week afterward, at work where they said ‘you 'gotta go home and we'll drive you home!'”

Shortly after that, Hicks got laid off from his job of 22 years at a factory warehouse.

“And so here I am, within a year’s time I’d lost my wife and my job.”

 Time is running out again for many Michiganders living on unemployment benefits.

 Hundreds of thousands of Michiganders have spent nearly two years surviving on unemployment checks as the state struggles with a double digit jobless rate.

But time may be running out for those benefits.  Congress has passed several extensions but may not this time. 

Norm Isotello is with the state department of Energy, Labor and Economic Growth.    He concedes there is an argument that extended benefits may get in the way of people looking for work...but

Catherine Hadler

Several Detroit artists have started what they call “an experiment in micro-funding.”  Once a month they host a public dinner that costs five dollars. During the dinner, several local groups pitch ideas for a creative project they’d like to do.  Diners vote on the proposals and at the end of the night the winning project takes home the money raised from dinner.

 

Dancers
Amelia Falk / Wellspring/Cori Terry & Dancers

35 arts organizations in west Michigan have been picked to be part of a new two-year training program run by the Kennedy Center for the Performing Arts in Washington, D.C.

The goal of the program is to teach arts leaders how to fundraise better and attract new board members, among other things.

Crafting a career out of woven rugs (slideshow)

Oct 20, 2010
Jennifer Guerra / Michigan Radio

Cross Village in northern Michigan is like a lot of small, rural towns in the state, where money is tight and jobs are scarce. And when winter comes around and all the tourists are gone, the outlook is even bleaker. So a group of women started up a cottage industry of rug making to help locals sustain themselves through the lean months.

23-year old Jasmine Petrie wears her hair in pigtails and has tattoos on her back and arms; she looks more like a rock star than a rug weaver.

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