Hill: Economic state reflected in influx of items at Auction Park

Ben Bernanke, chairman of the Federal Reserve, couldn't be reached.

Timothy Geithner, secretary of the treasury, wasn't available.

But you don't need to contact the financial geniuses in Washington, D.C., to get a pretty good handle on what's happening with the economy, especially in the Northern San Joaquin Valley.

All you really need to do is visit The Auction Park in north Modesto, owned by Roger Ernst and his family, on any Saturday. It's an up close and personal look at what individuals, government agencies and businesses are buying, selling or just plain unloading at the largest privately owned auction business on the West Coast.

On a recent tour of the sprawling Modesto complex at an old cannery site off Kiernan Avenue, Ernst showed a fraction of the mountains of items that he and his crew auction off:

Sports memorabilia, coin collections, silver, gold, diamonds, jewelry, high-end watches, electronics, computers, vehicles of all kinds, warehouses full of furniture and just about anything else you can think of.

Ernst, who's been in the business more than 30 years, says he knows valley residents are suffering because of the types of things he's asked to sell and the volume of items on the auction block.

Ernst said his crew are selling more stuff, but it's bringing in less money. These days, he said, cash is king and everyone is looking for a bargain.

The Auction Park is an imperfect barometer of the economy, to be sure, but it's probably far more accurate for determining what's going on in the valley than anything coming out of Washington.

Ernst notes that people from all walks of life and all income levels are coming to The Auction Park with items to sell that under different economic conditions they would never think of parting with. He's been asked to auction off solid gold coins, a silver bar, Rolex watches, diamond jewelry and Mickey Mantle autographed baseballs.

Since he has to verify their authenticity, Ernst knows these are the kinds of things most folks wouldn't part with; they are rare, specialty items that the owners often have strong emotional attachments to. But with more people in tough financial situations, it's easier for them to break those bonds and sell off their prized possessions. Selling that Rolex or Grandma's diamond necklace makes more sense if it means making the mortgage payment for another month or two.

Don't kid yourself, though. It still hurts.

Ernst isn't seeing just cash-strapped individuals knocking down his door with stuff to sell. He's also seeing more businesses trying to unload all kinds of equipment, from building fixtures and office gear to computers and trucks, as they downsize and try to stay afloat.

Ernst even gets approached by manufacturers to sell merchandise retailers don't want as they cut back amid declining consumer spending.

He's tracked the steady rise in business bankruptcies in the valley, as those unfortunate closures have sent an ever-increasing stream of items to The Auction Park.

Nowhere is that more apparent than in the huge amount of new furniture Ernst has in storage. As the housing market slowed and then took a nose dive, home furnishings took a big hit. As stores closed or went into bankruptcy, The Auction Park picked up truckloads of furniture. With most items still in the boxes, Ernst employs a crew to assemble furniture, make any repairs and set up displays.

Ernst said the number of repossessed cars that banks and other financial institutions are sending his way is on the rise. He estimates lenders are targeting tens of thousands of cars in the valley for repossession.