Tuesday, August 21 , 2018, 10:07 am | Fog/Mist 68º



Bank of Santa Barbara Leads Summit on the Regional Effects of Global Economy

Thursday's forum, a benefit for the family of fallen local Navy SEAL Louis Langlais, begins with a tribute and moment of silence

The lagging global economy will result in slow growth for local businesses, CSU Channel Islands professor Sung Won Sohn said Thursday morning at the “Global Economy Impacts on Regional Business” summit presented by The Bank of Santa Barbara at Fess Parker’s DoubleTree Resort.

But before talking business, Bank of Santa Barbara CEO Eloy Ortega read the transcript of a video that Navy Master Chief Petty Officer Louis Langlais recorded for his family. The SEAL Team Six member and Santa Barbara native was killed in action in Afghanistan in August.

All proceeds from Thursday’s event will benefit the 44-year-old’s family — his wife, Anya, and their two young sons, Gabe, 9, and Jack, 7.

“I love you so much. I know I keep saying that but it’s true — I do,” Ortega read. “Gabe and Jack, when you’re older and watch this video, hopefully it will make a little more sense. I want you to know Daddy is over here fighting this war so when you’re older you won’t have to do this. I don’t want you to do this. I don’t want you to fight this war on terrorism.”

After a moment of silence, Sohn and former Federal Reserve Bank senior economist Gary Zimmerman discussed the global economy with about 150 people at the summit.

Although China, with a projected 9 percent GDP growth, and Germany are faring well, the financial crisis in the Eurozone could push advanced nations into another recession, according to Sohn. He said foreign banks’ exposure to Greek debt is high, and the Eurozone must break up.

“We are like a spider web,” Sohn said. “What happens overseas does affect you, and in part because of that our jobless rate is very high, we’re not creating jobs, small businesses cannot get loans and cannot generate income so they are laying people off.”

Dr. Sung Won Sohn said Thursday that the financial crisis in the Eurozone could push advanced nations into another recession.
Dr. Sung Won Sohn said Thursday that the financial crisis in the Eurozone could push advanced nations into another recession. (CSU Channel Islands photo)

The key to a quicker U.S. recovery is job growth, which can be spurred by the housing sector, according to Sohn. He said there are 22.5 million households with a mortgage rate of 5.6 percent or higher. If they were to refinance it could put about $50 billion back into the economy.

Sohn also suggested using banks’ excess liquidity to fund small-business loan guarantees and easing government regulation.

He said a short-term fix includes economic stimulus funding, while spending and tax cuts could bring more corporate money back to the United States.

In terms of Santa Barbara County, Sohn said the good news lies in the tourism sector, single-family home sales and the high-tech sector.

The local economy will mimic national trends, Zimmerman said, which projects minimal job growth, high unemployment and a depressed housing market until 2014.

The Bank of Santa Barbara presented the event in association with the Santa Barbara Region Chamber of Commerce and was sponsored by the CSU Channel Islands Institute for Global Economic Research.

Noozhawk business writer Alex Kacik can be reached at .(JavaScript must be enabled to view this email address). Follow Noozhawk on Twitter: @noozhawk, @NoozhawkNews and @NoozhawkBiz. Connect with Noozhawk on Facebook.

Support Noozhawk Today

You are an important ally in our mission to deliver clear, objective, high-quality professional news reporting for Santa Barbara, Goleta and the rest of Santa Barbara County. Join the Hawks Club today to help keep Noozhawk soaring.

We offer four membership levels: $5 a month, $10 a month, $25 a month or $1 a week. Payments can be made through Stripe below, or click here for information on recurring credit-card payments and a mailing address for checks.

Thank you for your vital support.

Become a Noozhawk Supporter

First name
Last name
Enter your email
Select your membership level

Payment Information

You are purchasing:

Payment Method

Pay by Credit Card:

Mastercard, Visa, American Express, Discover
One click only, please!

Pay with Apple Pay or Google Pay:

Noozhawk partners with Stripe to provide secure invoicing and payments processing.

  • Ask
  • Vote
  • Investigate
  • Answer

Noozhawk Asks: What’s Your Question?

Welcome to Noozhawk Asks, a new feature in which you ask the questions, you help decide what Noozhawk investigates, and you work with us to find the answers.

Here’s how it works: You share your questions with us in the nearby box. In some cases, we may work with you to find the answers. In others, we may ask you to vote on your top choices to help us narrow the scope. And we’ll be regularly asking you for your feedback on a specific issue or topic.

We also expect to work together with the reader who asked the winning questions to find the answer together. Noozhawk’s objective is to come at questions from a place of curiosity and openness, and we believe a transparent collaboration is the key to achieve it.

The results of our investigation will be published here in this Noozhawk Asks section. Once or twice a month, we plan to do a review of what was asked and answered.

Thanks for asking!

Click Here to Get Started >

Reader Comments

Noozhawk is no longer accepting reader comments on our articles. Click here for the announcement. Readers are instead invited to submit letters to the editor by emailing them to [email protected]. Please provide your full name and community, as well as contact information for verification purposes only.

Daily Noozhawk

Subscribe to Noozhawk's A.M. Report, our free e-Bulletin sent out every day at 4:15 a.m. with Noozhawk's top stories, hand-picked by the editors.

Sign Up Now >

Meet Your Realtor Sponsored by Village Properties

Photo of Cimme Eordanidis
Cimme Eordanidis
"Since I truly enjoy doing what I do, interacting with people and representing them during one of life's most exciting events is very rewarding."

Full Profile >