RIGONOMICS:

The stock market rallied another 165 points Friday for a total increase of 2,027 points on the Dow up from the March 9 bottom. That is a 31% increase in the last two months. If the stock market forecasts the future, this economy has bottomed out. Further signs of bottoming out were in the unemployment numbers released yesterday morning. Although it is painful that nationally another 539,000 people lost their jobs this past April, it is less than the 665,000 newly unemployed in March. Job creation always lags the turnaround in the economy. The very first step in getting net new jobs is slowing down the loss.

The local real estate market has also already bounced off the bottom. The number of sold homes in Orange County each month has consistently been 30% ahead of last year over the last five months. For the first time in three years the median price in Orange County has, ever so slightly, gone up month over month for the last three months. Buyers no longer look at how much lower prices were a year ago. That has already been figured into the mix. What home buyers care about is whether we hit the bottom. Seeing overbidding and multiple offers on bank-owned properties tells us the bottom is behind us.

Now that the world banking system has been stabilized, the economy has the ability to grow. My prediction last year was that we would be out of the recession by the end of the second quarter (June 2009). It looks like it will be close. But remember, just because the country gets out of the recession does not mean the pain is over. For those of us with a job the recession may be over, but until the 5.7 million people who have lost their jobs during this recession have an opportunity for a new job, it won’t be over for them. Please remember in your charitable giving to support the groups that are helping people during this trying time.

Last week I wrote about the upcoming OC Marathon. Well, standing at the finish line watching the thousands of runners cross was a sight to behold. The effort those runners made to finish could only be topped by the organizers and the thousands of Orange County volunteers who made the race possible. My hat is off to all of you.

The change in this year’s course, which now ran though Corona del Mar along the ocean and finished in Costa Mesa at the fairgrounds, was universally loved by the runners. Veteran marathoner and Chapman University President Jim Doti said: “Fabulous new course; terrific organization — the OC Marathon has dreams of greatness, and with the 2009 race, it went a long way toward making those dreams come true.”

One of the concerns of doing the marathon was having so many streets in Newport Beach and Costa Mesa affected. The planning and execution of the respective police and public works departments went with very few hiccups. In fact, I heard from someone traveling down Fairview Road that they were pleasantly surprised at how efficiently the Costa Mesa police opened and closed Fairview as the marathoners crossed at Merrimac. The last thing a marathoner wants is to be stopped at mile 25.5 for a red light. The fact that not one runner had to break their stride is testament to the flawless job the police did while still keeping Fairview open for traffic on a Sunday with two swap meets going.

Runners from 44 states and 13 countries participated in this year’s event. Word runs quickly in the sport. Expect to see this event grow in size and stature in the marathon world. The number of participants could easily double within a couple of years.

According to a verbal report given by Shaun Robinson, representative of the Costa Mesa Convention and Visitors Bureau at last week’s city council meeting, the race was a success. Local hotels and restaurants saw a pickup in business over the weekend because of the race. Local charities also raised thousands through the race.

It doesn’t get any better than that.

JIM RIGHEIMER is chairman of the Costa Mesa Planning Commission, a local business owner and a father of four. He may be reached at Jim@Rigonomics.com.