Economic Indicators
Are We Booming? or Glooming?
By Cary Osborne
That includes less advertising, which Some small banks did not participate
Sally Moore, the manager of Halfway
in the loan practices that helped bring
House Café, can attest to. The res-
down some of the bigger banks. Also, a
taurant has been open since 1931. “It
lot of the community banks’ investments
would kill us if we raised prices now,”
were not as active in the housing and
A
drive through the Santa
Clarita Valley will clearly
show how bleak times are.
Foreclosure signs are staked into
she says.
construction market. It has allowed the
yellowing grass. That restaurant you
small banks to have the ability to issue
once frequented is no longer there.
New businesses such as So Cal
personal and business loans.
The local economy is a microcosm of
Sun Tanning opened in February
the overall economic crisis gripping
in the Centre Pointe Marketplace
William Sloan, Senior Vice Presdient,
the country. Some local businesses
and already has to rely on less
Regional Manager of California United
have had to make changes to main-
staff. It hasn’t helped that a nearby Bank in Santa Clarita, also speaks
tain or stay in business. Starbucks closed its doors. “It’s
optimistically. “Because California
slow,” says So Cal Store Manager
United Bank has not made any sub-
The restaurant industry, mom-and- Stephanie Dittfeld. “Obviously the
prime loans, and has few consumer real
pop stores, the banking industry and economy is just killing us.” Dittfeld
estate loans of any type, the mortgage
the housing industry in the Santa says she expects business to pick up,
issue has not impacted us at all,” he
Clarita Valley all have been affected. as more stores come into the area
says. “In fact, we have seen an upswing
College of the Canyons Economics and more people become familiar with
in our business as many former cus-
Department Chair Lea Templer says the store’s location. Until then, she
tomers of banks that have had these
there is a fanning of the flames going says, it’s survival mode.
issues have been moving their business
on because of a lack of consumer
to CUB.”
confidence. “I think people basically Even mom and pops are in survival
are afraid,” Templer says. “They’re mode. Anthony Tapia, who owns
While ample blame for the economic
fearful of what may happen — that
Back to Sleep, a local mattress
mess has been placed on the housing
they might lose their job as companies
store, says he’s had to cut down on
industry, Karen Fosbrook of Prudential
close down or tighten their belts.”
space, advertising and employees. California Realty says the real estate
The City of Santa Clarita, though, market has recently shown signs of
A good indication of a possible turn-
has tried to give some room for opti- strong health. Data from the Southland
around, she says, might be measured
mism. It sent out a press release Regional Association of Realtors, shows
soon. With the impending presidential
in September, which listed The the market with improvement from this
election and holiday shopping season,
California Retail Survey recognizing August compared to August 2007.
the economy has an opportunity to
the area as one of the top 25 retail Single-family home sales are up seven
improve. But it also has an opportunity
markets in the state. percent, pending escrows increased
to sink further. Dollars are being spent
89.3 percent and active listings have
more wisely and with that the restau-
With that being said, economic health decreased 32.9 percent. Whether it’s
rant industry has taken a hit.
can be seen from the numerous com- housing, investments or consumer
munity banks in the area. The fall of spending, Santa Claritans will be watch-
One common practice being seen
giants like Washington Mutual and ing to see what happens.
is families are saving their money
Wachovia has brought about panic to
and eating at home during the week,
many bank customers. But Tamara
then splurging only on the weekend.
Gurney, president and CEO of Mission
Traffic at Bergie’s Steakhouse and
Valley Bank (which has two locations
Halfway House Café, two long-
in the Santa Clarita Valley), says that
established Santa Clarita area res-
the media has not given enough or
taurant cornerstones, has gone down
correct information to consumers. “In
during the week.
terms of small banks, it’s business as
usual for us,” she says. “We are mak-
“I have not raised prices,” says Donna
ing loans. We were never a part of the
Deans of Bergie’s. “I’m trying not to. problem from the low-doc, no-doc loans
I’m trying to cut back in other ways.”
565 Canyon Country Magazine November 2008
that made their way to Wall Street.”
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