California State Governor Arnold Schwarzenegger thought he could help the California economy when he ran for office as Governor but he has struggled with politics instead. The state budget has a deficit of $7 billion to $8 billion and is projected to reach 20 billion by next year. Foreclosures are soaring and thousands wait in lines at job fairs in hopes of an interview to work with the middle class being one of the hardest hit.

Elias Ayoub who lost his house to a foreclosure "strawbuyer" scheme says he can't put pictures up in his rental home. Ayoub bought a modest three-bedroom single-family home on Florin Road for $3,000 more than 30 years ago. The Sacramento home went into foreclosure, the result of a "strawbuyer" scheme gone awry at the hands of a financial consultant who pocketed more than $40,000 from the homes equity and more than $15,000 in mortgage payments, police said. Sacramento police arrested Robert Yang last week on two counts of grand theft and one count of financial abuse of an elderly person. He has since made a $100,000 bail police said. Photo taken Wednesday January 7, 2009.