Real Estate in California - Our homes are on the edge of a financial cliff

Real Estate in California- our homes are on the edge of a financial cliff. There I have said it. Further, relatives always said we would get carried off in a tidal wave. Well, the financial tidal wave is rising faster than the ocean.

Today in the LA times I could see a dot to dot link of articles that when reviewed you can see that self interest business (is there any other kind) is striving to stay and missing the point...institutions need to have a heart for the people or they have a hollow survival like Mr Scrooge.

Here are the dot to dot points.

Bad news

La Times 8/19/2010 headline "Swap deals unnerve California. Credit default swaps may influence the market for mini bonds. Is Wall Street profiting from Californias misery. Nathaniel.Popper@latimes.com described how a credit default swap deal works. In simple terms its about insurance and betting. The investors bet on which way the deal will go California defaults-as in is late on a payment- or it will not. The insurance covers it either way. Remember Kathy Bates line in a movie "I have insurance" as she plows into a car. Yes folks with insurance The investors make money either way. JP Morgan Chase, people are watching you and we just might not take it anymore!

"GREEN retrofit loans dry up" The Green retrofit for our country is the place new jobs should be heading.

The cliff is the reality that the lenders are only loaning to people with jobs. California self employed people are not getting loans. And guess what? They have equity in their homes that they cannot access. Lots of equity 1 or 2 million dollars of equity. Believe me it is true.

Another point.....RED FLAG Lenders would rather take a home with equity as a forclosure because they can make money. They move it from the red column to the black column. This happened in the old days of the depression. The ones with big mortgages they take last. Banks are here to make money. I know people that lost money to Indymac, they never thought the bank would close. My prayer is that the Government will make the lenders accountable to their actions. Make them work to get people back on their feet with homeowners who create jobs.

Good news

GM is paying back its bail out loan. A+ Some, Ford didn't even take out a loan A++. The main point is that something worked. The automotive and airline industry got help.

Skunks make a stink when they are scared....I guess JP Morgan Chase is scared.