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El Cerrito Rotary: The Wheel February 5, 2009
El Cerrito Rotary
The Wheel
Editors: Gary Buffon & Michael Doughtery
Week of Feb 5h 2009
President Jack welcomed us to the friendly El Cerrito Rotary Club. John F led the flag salute and President Jack provided a thought for the day.
Introduction of guests and Visiting Rotarians: Sec John announced today’s visitors, Marcel Lloyd, Sec John’s Son in law. Also we had Pat Toddhunter, Vickie Martinez and Lea (missed her last name) both of Mechanic Bank. Paul Keith, guest of John F and Pres Jack’s guest Paul the new mgr of the Mira Vista Club.
Announcements:
ð GGF’s was successful but not as many people because of the Superbowl
ð Feb 27-28 is the open house for the new El Cerrito School
ð There is a Club Board meeting next Tuesday the 10th. Let Jack know if you are attending
Happy dollars: Carl is happy to be back and he had a great time in Paris at the International Year of Astronomy where he was busy recruiting other countries for participating in this great educational opportunity. Don is enjoying being Ksusha’s Rotary Councilor. Michael C is happy about his daughter’s performance on the swim team. Charlie is happy his son is returning from overseas. Gary B is glad said he would not be chosen for a White House executive post as he pays his taxes. Thom is happy to be away from the ice, snow and cold weather he experienced in Michigan. John F. is happy that his friend Paul Keith (today’s guest) is a new Dad.
Sgt at Arms: Not on duty today
Today’s Program:
Nancy McCarthy introduced Brian Pretti from Mechanics Bank to share with us his annual economic analysis and investment information update. Brian began giving us some important background on what has been going on and then reviewed the packet of information he handed out. We were reminded that the we are dealing with a credit situation that has been developing for over two decades. It has largely been created by the notion that using credit gives us leverage and that all the assets we obtained through consumer purchasing was the same as savings because our house and 401K would be earning what we needed without us having to save anything. Now what is happening is we are seeing a resetting of the financials levels that constitute “Normal.” There has been a hit to the markets which relates to a 50% decline in asset value. In addition, the challenges we face in the banking and other financial markets must be addressed so they do not bankrupt the entire economy. Add to this that there will be another round of mortgages that will be “resetting” over the next three years and it simply means we have one of the most significant financial challenges of our lifetime. This is an economic phenomena that the current generation will not soon forget. Brian took us through a lot of the factors which are impacting our current economy and the challenges we face to get through it. In his close he said there are two important things to keep in mind: 1. The economy is contracting and resetting and 2. During this period market by confusion and panic. The fiscal deficit that will be incurred with government spending will create inflation so be aware of this and plan accordingly. Brian made a great presentation with a very sobering message.
 Brian Pretti checks his notes while giving his financial update on the economy
Today’s Lottery Winner: Ihami had his ticket pulled for a chance at winning the pot and selected a black marble; he paid the $5 and won the bottle of wine. Next Week the pot is worth $140.
Interact Corner by Gary Buffon – Rotary Advisor to Interact:
Four of our Interact Board will be attending the District 5160 planning retreat at the end of this month. In addition, we have our candidates for both Camp Royal and Camp Venture and the selections of the attendees will take place next week.
Thought for Week:
Financial sense is knowing that certain men will promise to do certain things, and fail.
--Ed Howe
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