Michael A. Caruso ~ Orange County Real Estate

AIG said in a recent press release that it is 'OK to party hearty'. They said they have to entertain in their customary manner to take care of clients that provide them with the business they enjoy in their AIG-AG and IFLC divisions.

Within days after accepting an $85 billion federal loan AIG hosted 820 people at The Smithsonian National Air and Space Museaum to celebrate their 35th anniversary. Costs? Who cares!

It gets better...

During that same period of time (the same weekend, in fact) AIG's subsidiaries spent a whopping $443,344 at the St. Regis Hotel in Monarch Beach "entertaining". We'd need a full time CPA just to calculate how much "fun money" these guys are spending.

It gets still better...

Meanwhile, the government was agreeing to another AIG loan in the amount of $37.8 billion.

Additional parties are on the horizon for AIG. They have scheduled a little get together for 400 stock brokers at the Marriott in Atlanta next week which will include airfare and hotel rooms, food and refreshments.

Wait just a minute here! If our government is funding this company than they (AIG) have to be accountable to us, the taxpayers and to the government.

But AIG thinks the parties are necessary...

We need you to weigh in on this one, please.

And thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

We have seen a stock market correction recently unlike any other since 1987. In 1987 however the turnaround was within 1 year. Yes, just 1 year later the market recaptured all it's 1,400 point loss and was a bit ahead.

It may take longer this time...far longer. And hoping or expecting for that quick 'snap back' could be a set up for disappointment.

Instead, it may be better to consider some mild life style changes. Here are some suggestions:

1) Small cup of Starbucks rather than a 'grande'.

2) Light lunch rather than a sit down lunch.

3) A light dinner and a movie rather than an extravagant evening out.

4) Rotate a weekend dinner at friends homes to maintain companionship while budgeting.

5) Use a bike or scooter once in a while for a quick trip to the post office or other errands.

And saved money goes into a savings account, if possible.

Now, and well into the future, home buyers will have to save money for a down payment on their home purchase. This is something not unusual to those over 40 years of age. It's a good thing to have some 'skin in the game'.

Posture yourself to manage finances and manage your expectations of an economic turnaround. It could take a while to work things out.

Thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

South Orange County Teen Emily Daniel had a big idea to finance her education: Open a Nightclub!

The Dana Hills High School student, who borrowed money from her Grandmother to start the LLC, uses proceeds not only to fund her college education, but also to donate to the Make-a-Wish Foundation. Stirling Nirvana nightclub is held at locations such as the Laguna Hills Community Center and the Orange County Sailing and Events Center. These dances provide high school students (ID required) with the opportunity to gather away from parents, while still providing a secure environment. With security on her payroll and parking lot sweeps to prevent backseat alcohol parties, parents need not worry about dropping students off for the evening.

Emily's events have already proven to be great successes: her attendees range from 100-350 dancers at each event, and her MySpace and Facebook friends list is rapidly growing.

While she will be ineligible to dance at her own nightclub in less than two years (the age maximum is 18), Emily hopes to continue her entrepreneurial endeavors in college...What will her next business be??

Your comments are welcome.

And thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

There is a wonderful place in Santa Ana called the Children's Therapeutic Arts Center. Here, children with developmental disabilities partake in after-school dance, music and art classes, which are all provided at no cost, thanks to many generous private donations and grants. The center hopes that such programs will prevent high-risk children from becoming involved in drugs and violence further down the road.

Unfortunately, the only thing the Arts Center lacked was enough instruments for their many students. This week, that all changed! Coastal International had several unsold instruments leftover from an exhibition earlier in the year, and after learning about the students and their need, donated instruments including guitars, drum sets, keyboards, saxophones and more.

In these tough economic times, it is still amazing that people are still remembering those in need. Perhaps focusing on others can help us remain thankful for what we have.

Your comments are welcome.

And thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors

Bank CD's are again in the limelight as an investment vehicle.

In the "go-go" years from 2001 to 2005 people liked the real estate investments and the stock market roared along until 2007. But recent cycles and market corrections have kept people away from both (at least temporarily).

So where can you park some money and make a few bucks? Well that old boring CD is back in vogue. Do your homework and you'll find some attractive yields for 3 month, 6 month and 12 month CD's. They may be boring but they are safe.

Your comments are welcome.

And thank you for making me Your Orange County Real Estate Connection.

Best regards.

Michael Caruso, Broker ABR ABRM CRB CRS GRI

2007 President, Orange County Association of Realtors