| Governor Joe Manchin has downplayed the effect of the nation's financial crisis on West Virginia, although the state is among a few that seems to be on fairly good financial footing.
The ongoing Wall Street crisis has washed away a fourth of the value from West Virginia's investment portfolio - a $2.5 billion decline - since the state's budget year began July 1.
The head of the state's Investment Management Board told legislators yesterday that the state's investments have been severely battered along with the rest of the market amid the continuing turmoil.
Executive Director Craig Slaughter said that the state could have done much worse, had it not invested in a wide array of stocks, bonds and other holdings.
Slaughter said the board plans to stick with its investment strategy, and to stay in the market at current levels. He said history shows Wall Street will rebound.
STATE NOT RECESSION PROOF
While WV has weathered some national recessions rather well, this financial crisis will take its toll.
"A lot of people are saying that West Virginia is recession-proof, and that's absolutely not the case," said Cal Kent, vice president of Business and Economic Research at Marshall University.
"I think we will be affected, maybe not as harshly, maybe not as quick, but we will be affected because the whole country is connected and the whole world is connected," said Jerry McDonald, president of the Huntington Area Development Council.
Construction and tourism industries will be hurt.
The state wasn't in good shape in the beginning, among the nation's lowest in personal income.
Not unlike most states, tens of thousands of production jobs have been going abroad for several years, eliminating low-paying jobs with minimal benefits.
Then there is the gyrating cost of gasoline and soaring food prices.
Since the country has become a consumer economy, there is and will continue to be a wave of national and local retailers taking out bankruptcy.
We are reminded that WalMart is the state's largest employer.
Coal and natural gas will bolster the state's economy. The coal jobs will be at greater risk as the nation moves away from fossil fuel.
| 
