[SteveinTO]

This post opened September 10 when Citibank was the largest financial institution on planet earth. As of today, November 21, Citibank, your lender, is virtually valueless. They need your commitment to be gone off the books because they lack the liquidity to make the loan.

Even though you FICO at 750 or whatever, their primary source of repayment is from your source of income, i.e. your job (or your investments if retired). Oh oh, you say you're an ashtray system designer for Ford Motor Company. Bummer.

Your secondary source of repayment is liquidation of collateral, i.e. your house. Oops, dropped in value by 40% (in L.A.) and the bottom is no where in sight. And the 1st T.D. puts your Home Equity lender in a bit of a sticky wicket.

In the end, banks operate on about a 1/2 of 1% net interest margin. There's no upside for lending venture capital, which your loan has become. Banks have to be repaid, the depositors and the Federal regulator's demand it. Your home equity line of credit went from being a highly valued bank asset to a criticized loan commitment in the period of three months, with no effort on your part.

The entire world is de-levering, as will you.