Clouds of economic recession still hover over El Dorado Hills and Folsom, just as they cover most of California, even while experts say the rest of the country is crawling out of the slump.

The business picture is mixed for local merchants. The Wine Konnection in El Dorado Hills’ Town Center, for example, recently disconnected, pulling the plug on the bar and restaurant and closing shop. Gone, too, on the other side of town is the once popular Burger Hut, a victim of the economy and the arrival of too many burger competitors.

Carol Ratto, co-owner with her husband of Folsom Motor Works on Bidwell Street, said the shop has “felt the pinch, just like everybody else. The economy definitely has affected us. We’ve really had to streamline, become more efficient.”

That’s meant not replacing an employee who left. “It’s been really tight. Customers just aren’t prepared to pay for the costs of their repairs and breakdowns. They can’t afford it and they don’t have the work done unless it’s absolutely necessary,” Ratto said. “We’ve even had people tow their vehicles and take them home because they can’t afford to repair them.”

Custom framing has also taken a hit.

“It’s tough” too at Hang It Up, the Town Center custom framing and gallery shop, said co-owner Dave Williams. “We’re in a retail segment that’s very much not a ‘gotta have’ niche. Custom framing and art are in more of an upscale retail segment.”

The shop owner said people are focusing on necessities at the moment.

“You don’t need art work to have food on the table and a roof over your head,” Williams said. “Our business is driven by the housing market but I’ve been surprised the past six weeks that the art side of the business has shown a little bit of life as people who can’t sell their homes decide to stay put and remodel or redecorate.”

He said things have gotten as bad as they can be.

“I do believe we’re through the bottom, so things are becoming good, but not as good as we would like,” he said. “Mid-2009 until late spring this year was a real struggle period.”

A few doors down from Hang It Up, the Mad Tea Party tea and coffee shop has shuttered. In its place, Ruffhaus Hot Dog Co. has moved in, operated by two brothers not cowed by the economic environment. “People have to eat. We’re the most affordable food in town,” says partner Charles Knight. Farther up the street in Town Center, Fireside Burgers in the theater food plaza, has done well enough to plan on opening a third store, this in Roseville.

Also out of the gloom is the Borders book store in Folsom, where business has been “great,” said Derek Johnson, service manager. The parent chain company has been hit just as many other businesses “but our store, because of our location, is usually at the top of the whole northern region district, from the Bay Area to Reno,” he reported.

“We’re usually at the top of the pack” of the stores in the region. “In sales, we’re definitely among the top three stores,” he said.

The only real impact of the recession on the Borders company at the local store has been holding down employee hours and funding available from corporate.

Otherwise, “We’re doing very well,” Johnson emphasized.