WORKIN’ NINE TO FIVE… WHAT A WAY TO MAKE A LIVIN’…” Dolly Parton. But unfortunately, last week’s Jobs Report was worse than expected, showing more and more people aren’t workin’ nine to five or any other kind of full time job. So what does this mean for our economy and home loan rates? Read on to find out.

Last Friday’s Jobs Report showed that 131,000 jobs were lost for the private and government sectors, versus the 87,000 job losses expected. To add insult to injury, the revisions for June showed nearly 100,000 more jobs lost than had been previously reported. While some of the losses were due to the government laying off temporary census workers, the private sector was also disappointing, showing 71,000 job creations for July, worse than expectations of 83,000… and well short of the market’s hope of 100,000. Rounding out the report, the Unemployment Rate remained steady at 9.5%, just below the 9.6% anticipated.

In addition, something to keep in mind is that the State governments are now under major pressure because of growing budget deficits. With tax revenues declining and budget cuts needed, States are finally having to make cuts like the private sector already has. As they start to catch up in making cut-backs to headcount, this could cause the unemployment rate to worsen. Not very good news, as an improvement in the labor market is needed to fuel the economic recovery… and especially disappointing, considering the money that has been injected to try and remedy this situation.

Also in the news, the Commerce Department reported last week that Personal Spending and Incomes were unchanged in June, due to a slowing of the economic recovery in the spring. In addition, the Savings Rate increased as consumers cut back on spending.

Why is all this significant… and what does it have to do with interest rates? It has to do with something called the velocity of money. Even though the government keeps pumping money into the system, nothing happens until that money is spent or lent, and passes from one hand to another, or one business to another. The speed at which this money passes between parties is called the velocity of money. With the job market still very sluggish, consumers aren’t spending much money these days… and businesses are still reluctant to spend money making investments in their business. With present velocity at low levels, inflation remains subdued… however, once velocity increases, the excess money in the system will cause inflation.

And remember, inflation is the arch enemy of Bonds and home loan rates… which means that even the scent of inflation can cause home loan rates to worsen.

While we certainly want to see better Jobs Report numbers in the future, Bonds and home loan rates were able to benefit from the poor report. Remember, weak economic news often causes money to flow from Stocks to Bonds as traders seek to protect their investments in the safer haven of Bonds. As a result, Bonds and home loan rates ended the week slightly better than where they began.

If you or anyone you know would like to learn more about taking advantage of historically low home loan rates, please don’t hesitate to call or email. Or forward this newsletter on to anyone you think may benefit and I’d be happy to talk to them free of charge.

ACING A JOB INTERVIEW IS ESPECIALLY IMPORTANT IN TODAY’S TOUGH JOB MARKET. CHECK OUT THE MORTGAGE MARKET GUIDE VIEW FOR SOME TIPS ON HAVING A GREAT WEB CAM INTERVIEW.

As a Member of California Women for Ag., I received this interesting information which I thought you might enjoy! – Lynda

Brad Erickson, a Paso Robles machinist who makes wine with home-grown grapes, just won Best in Show with his port wine in the California Mid-State Fair competition. Tom Johnson, an optometrist with offices in Paso Robles and Atascadero, makes wine after work and on weekends. He’s bottling his first vintage this year. Steve Autry, a former aerospace engineering technician in Los Angeles, moved to San Luis Obispo 10 years ago to learn about winemaking. He started with a box of juice, what he calls a “dump and stir … kind of like cake in a box.” He now has his own winery and tasting room, producing 800 cases a year.

TRIBUNE ARTICLE

It’s a role reversal not commonly seen, but then the cat chasing this dog is a little larger than most. Salati, a ten-month-old leopard, and her best friend, golden retriever Tommy, like nothing more than to run amok before settling down for a friendly cuddle. The odd couple were reared together at Glen Afric Country Lodge near Pretoria in South Africa.

Salati, a ten-month-old leopard, leans in for a cuddle with her best friend, Golden Retriever Tommy Animal wrangler Richard Brooker, 23, raised Salati and takes her and family dog Tommy for their daily exercise together. Each morning, he walks them on his family's 1,850-acre estate and then lets them run free to their hearts' content. He said: 'Wherever you see one, the other is right behind. They are inseparable and both have lots of energy so they get the exercise they both need together.

The pair take daily walks together at the Glen Afric Country Lodge near Pretoria in South Africa 'When we first received Salati she was tiny and Tommy could chase her around. But now with Salati matching him for weight the tables have turned. 'It's all fun and games and they love playing together. 'But dogs aren't used to being chased by cats almost the same size as them. I think it was a shock for him when she started doing the chasing but it's fun to see them exploring together.

Tommy and Salati enjoy a bit of rough and tumble in the South African bush. As a cub Salati was much smaller than friendly Tommy, who weighs 18lb. But the fast-growing predator now packs a bigger punch at a hefty 40lb, more than twice the weight of her excitable dog friend. Mr Brooker added: 'Dogs need to walk and going out with Tommy for a ramble in the bushes means Salati develops properly into a fit adult leopard.

The pair lay contentedly together in the boot of the four-wheel drive 'I take them out in the truck so they can have a good run-around together in lots of space.' Rescued as an orphaned cub, Salati was donated by a local vet to the family-run country retreat, which helps to rehabilitate injured and destitute animals. Breeding programs at the spectacular venue also ensure that some of their animals who will never be able to survive in the wild enjoy the good life within huge enclosures. The Brookers' hard work has helped boost wildlife numbers in the area.. They have over 200 animals across 32 species on the grounds. The stunning getaway is visited by resident guests staying at the lodge and day visitors who want to see Africa's amazing creatures including lions, elephants and giraffes.

“The greatness of a nation and its moral progress can be measured by the way in which its animals are treated. To my mind, the life of a lamb is no less precious than that of a human being” — Mahatma Gandhi

As a Member of California Women For Ag, I am fortunate to receive important and interesting information which I will continue to add to my web page.

- Lynda

The Sonoma County grape harvest is at least two weeks behind schedule, worrying growers that October rains could lead to devastating mold and crop loss. “It’s a major concern,” said Nick Frey, president of the Sonoma County Winegrape Commission. “The cold weather this week is certainly not helping any.” The season got off to a late start in May, when unusually cold and wet weather interrupted the blooming of many vines. “This year has been behind from the get go,” said Chris Bowen, vineyard manager of Hunter Farms south of Glen Ellen. Bowen is often the first to begin harvesting in Sonoma County because his pinot noir grows in a region unusually warm for sparkling wine grapes. Last year, he started harvesting Aug. 10. This year, he expects he will be waiting “at least a couple weeks” later than that to begin picking.

Santa Rosa Press Democrat

READ W SOCIETY MAGAZINE ARTICLE

by Lea Fainer

TTB Update- May 19, 2010

In a recent conversation with Scott Cain, Winery Applications Unit Chief at the Department of the Treasury- Alcohol and Tobacco Tax and Trade Bureau (TTB), reported that the TTB has recently begun to more strictly enforce the regulations contained in the Federal Alcohol Administration Act: Title 27 of the

United States Code:

§ 1.44 Automatic termination of permits.

No basic permit shall be leased, sold, or otherwise voluntarily transferred, and, in the event of such lease, sale, or other voluntary transfer, such basic permit shall automatically terminate thereupon. If any basic permit is transferred by operation of law or if actual or legal control of the permittee is acquired, directly or indirectly whether by stock ownership or in any other manner, by any person, then such permit shall be automatically terminated at the expiration of 30 days thereafter: Provided, That if within such 30-day period application for a new basic permit is made by the transferee or permittee, respectively, then the outstanding basic permit shall continue in effect until such time as the application is finally acted upon.

That Was Then…This Is Now

If you are a permitted winery currently considering reorganizing your company structure, the above regulation is not to be taken lightly. In the past, the TTB has taken a more lenient approach to enforcement of “timely filings” for ownership changes. This was most often experienced in cases where a new legal entity had been formed, but no new individuals were being introduced into the company (e.g.: a sole proprietor incorporates and is now the sole officer and shareholder). The TTB would overlook the 30-day deadline, and the winery could continue to operate as their application was reviewed. In an attempt to reign in on the recent rash of mergers and acquisitions of wineries, the TTB is no longer taking this lax approach, regardless of how minor the entity change might seem.

The Cost of Enforcement

Today using this same example, the winery would receive a certified “Cease and Desist” notice from the TTB until the application related to the new entity was approved. This means no wine removals or fermentation. Ignoring that Cease and Desist notice could constitute a criminal offense. If you are a small producer, take careful note: Once the transfer files enter into the Tax Auditing Division of the TTB, further review of excise tax liabilities subsequent to an “untimely filing” could result in a disqualification of the tax credit eligible to small producers. The disqualification would be assessed retroactively for all wine previously removed from bond. If the transfer application was filed years after the actual transfer of control, this could come with a hefty price tag.

Look Before You Leap

71517 Cross Canyon Road, San Miguel

60-acre ranch and residence

$725,000

This gorgeous ranch is what everyone is looking for! Just a few short minutes from Paso Robles, this little ranch has it all. Tons of great level pasture with a good well, Pole Barn, and both horse & cattle fencing & cross fencing. The absolutely adorable little house with attached garage is tucked under the trees on top of a ridge with views of the entire lower area of the ranch as well as the Big Sandy River. Well located on a paved county maintained road, this amazing property offers you such privacy as well as a great bunch of ranching neighbors plus, it is just a short drive to the Norman Rockwell little town of Paso Robles, now famous for some of the best California wines and fine dining.

THE PROPERTY: APN: 424-121-006-000 (Approximately 60 Acres)

THE RESIDENCE:

A doll house for sure! Cute little two bedroom, two bath, about 1294 Square Feet. The home was originally built in 1989. The owners have done considerable upgrading, including custom barn wood fronts on the kitchen cabinets, and a wall, new paint, stainless steel counter tops in the kitchen, new dishwasher, gorgeous 16-inch ceramic tile floor in the living room, kitchen, dining area and baths.

They installed gorgeous custom French doors in both the kitchen, living room and master bedroom to enjoy the unbelievable and completely private views. There is also an attractive new, high-end, wood stove in the living room (in addition to the central heat and air conditioning system). There is an older wood deck off the living room for wonderful summer bar-b q-s with amazing views of the lower pasture land and the Big Sandy River. There is an attached two car garage, with washer dryer, newer water heater, and numerous built in cabinets and work area.

Over the years the owners have added two new 5,000 gallon water tanks, completely upgraded the water system from the well to the water tanks. They also installed a large amount of beautiful pipe fence.

On the N. E. portion of the ranch is a large hay barn, with horse runs. water, power and septic have been installed (not permitted) for a caretakers mobile home (which belongs to the care taker and is not included in the purchase price).

The best part of this ranch could be all the gorgeous oak studded hills. The views are breathtaking and the entire property offers endless possibilities for another home or just grazing cattle and horses and enjoyment.

YES, that’s a yak!

FACT SHEET

AERIAL MAP

APN MAP

Windwood Road ~ 16+/- Acre Estate with Vineyard, Paso Robles area

This wonderful home has been lovingly transformed into a romantic,private oasis. 2 Bd, 3 bth, approx. 2690 Sf, Open & bright,impeccable attention to detail throughout from the new carpet, wide plank oak flooring to the marble countertops & butcherblock island in the kitchen. Gorgeous panoramic views of the surrounding hills & vineyards can be seen from nearly every window of the house. 7 acre commercial vineyard has a reputation all its own, perfect for the wine enthusiast! All this, plus a guest house.  

$1,395,000

The reason you will seldom see a man riding bareback!!