Our economic hole includes doughnuts

Just like you, I read daily about our faltering economy. Oil prices are at record levels, subprime loans are threatening our financial foundation, our largest banks are being sold to foreign interests, etc. The economy is not on life support but some experts see that coming just around the corner.

But the truth is I didn't fully realize the extent of our financial woes until I read a business report from the Associated Press last week. And although I don't pretend to understand the intricate details of our economic downturn, I know it when it hits home. And when Krispy Kreme Doughnuts is in financial hot water, nothing remains sacred in today's changing economy.

Don't misunderstand. I know Krispy Kreme Doughnuts primarily from reputation. I've enjoyed the tasty treats on occasion but I know in the St. Louis area, from what I'm told, Krispy Kreme Doughnuts rule! In fact, the sweet treats are so popular that there are groups in Sikeston who travel to St. Louis, bring back several dozen and then sell them for charity or some other fundraiser.

So in my sheltered world, Krispy Kreme Doughnuts - I assumed - was right up there with Wal-Mart as an icon to our financial success. Mom, apple pie and Krispy Kreme Doughnuts!

The company just celebrated their 70th year of selling fresh glazed doughnuts. Now just about every community across this great land - Sikeston included - brags about some locally-made doughnut. But Krispy Kreme seemed to dominate the elite and rarified air of something special. Turns out the company is not setting the financial world on fire and may be headed for extinction.

Krispy Kreme stock once traded at more than $50 per share. In 2005, the stock hit a new low of about $4 per share. That's a major decline for any company and the doughnut business is no exception.

So, as expected, there's yet another new chairman to run the company and there's a promise of some corporate shuffling to save the sinking ship. And in our obesity-enriched society, the company has turned to healthier products and no trans fat.

If Krispy Kreme Doughnuts is not immune to the financial swings in this country, then no one is safe. I know absolutely nothing about the financial aspects of the doughnut business. But I do know I have a granddaughter in St. Louis who may well wonder someday whatever happened to those delicious sticky doughnuts she so enjoys. And she's far too young to learn a tough lesson in economics.