Ron Prechtl was invited to attend Meg Whitman’s town meeting with Senator John McCain today at the Marconi Family Museum in Orange County.  Mary Bono introduced the Senator and Meg Whitman (Candidate for California Governor 2010), to the group of friends. 

Meg discussed the plethora of issues affecting California, while openly providing her reasons for running for Governor.  Senator McCain, a true American Hero, spoke frankly about his experiences and the current climate in Washington, while endorsing Meg as Candidate for California Governor. 

Clearly, California needs fixing.  Meg stated that income was not the issue–it was spending!  Her objectives are to keep jobs here–continue to cut spending in the areas where there is still plenty of room to cut.  Drawing attention to California Schools, Meg indicated that California Schools are currently ranked 48th of the 50 states; she supports the Charter School program that has worked so well in Florida. 

A group of us at the meeting as pro-life advocates had heard that Meg was pro-choice, but that she recognized life begins at conception; unfortunately, her message today did not clearly state that interpretation and did not seem to please the pro-life position;  the advocates felt that in spite of her pro-choice position, Meg may still be the best of the choices for Governor, given the tone of our state and the position of the other alternative choices for 2010 Governor. 

It’s critical to keep dialogue open with Meg to confirm that she’s the right candidate for Governor 2010.  Meg’s credentials certainly position her to tackle the challenges facing the next governor of California.

Pictured is Senator John McCain with Ron Prechtl, at the Meeting on May 29, 2009 at The Marconi Family Museum in Tustin, CA.

Consumer confidence rose to 40.8 in May compared with the previous month and now stands at 54.9 (1985=100,) according to a report released yesterday by The Conference Board.  The Board’s Present Situation Index increased to 28.9 in May from 25.5 the previous month, while its Expectations Index rose to 72.3 this month compared with 51.0 in April.

“Continued gains in the Present Situation Index indicate that current conditions have moderately improved, and growth in the second quarter is likely to be less negative than in the first,” said Lynn Franco, director of The Conference Consumer Research Center.  “Looking ahead, consumers are considerably less pessimistic than they were earlier this year, and expectations are that business conditions, the labor market and incomes will improve in the coming months.  While confidence is still weak by historical standards, as far as consumers are concerned, the worse is now behind us.”

Consumers’ short-term outlook improved significantly in May, according to the report.  Those expecting business conditions will improve over the next six months increased to 23.1 percent in May from 15.7 percent in April, while those anticipating conditions will worsen declined to 17.8 percent this month compared with 24.4 in April.  (From C.A.R. Newsline)

This month The Federal Reserve voted to keep the current target range for the federal funds rate at 0 percent to .25 percent.  Anticipating that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.  “The economy had continued to contract, though the pace of contraction appears to be somewhat slower,” the fed said in a prepared statement.  “Household spending has shown signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit.  Weak sales prospects and difficulties in obtaining credit have led businesses to cut back on inventories, fixed investment, and staffing.  Although the ceconmic outlook has improved modestly since the March meeting, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time,” and inflation will remain subdued.

Now is the time!  Our REO department has some of the best opportunities available on bank owned properties in The San Fernando Valley.  It’s a buyer’s market with pricing being down 30-60% along with outstanding interest rates and the $8,000 tax credit for home buyers!   This stimulus program has been receiving a lot of attention from buyers and has ‘stimulated’ a lot of interest in our REO department.  Our REO team has some amazing opportunities on properties.  CLICK HERE to check them out.  The $8,000 tax credit for first-time home buyers should entice some first-time home buyers to “jump-in” and buy a home, but it may prove to do little in increasing overall demand as first-time home buyers represent a small percentage of the entire market. Only time will tell if the tax credit is effective.

• Available only to first-time home buyers
• The tax credit is not a loan and does not require repayment**If the home is sold within 3-years, the $8,000 tax credit must be re-paid
• The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check
• Home purchase must be for a primary residence
• The credit is available on home purchases between January 1, 2009 and December 1, 2009
• If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
• The credit is not eligible if the seller is a relative of the buyer