Homelessness This is a topic that has interested me for quite some time now.
By "homeless", I mean the state of having no home and living on the streets; And by "eople", I am referring to anyone at any age at any location in the world, who is "homeless".
Is it due to personal issues, such as substance abuse, recidivism, or even abandonment at birth? Or is it a part in a larger puzzle, such as the failure of the economy or the government to provide for its citizens?
I would like to hear your opinions on this. All are welcome. Thanks.
The 'malfunction' was the rubber band snapping back. People had been living beyond their means and spending more than they could afford.
The housing market quite often does not operate in an optimum way (for whatever reasons), there are many market imperfections (a.k.a. market failures, market malfunctions). These market failures generate a number of problems, including an escalation in house prices and rents, and inequalities, so some persons face increasing affordability problems in accessing housing or are excluded from housing altogether.
The people that had been living beyond their means are mainly a subprime market failure (subprime lenders are borrowers who might be less likely to repay a loan). Market imperfections in the Mortgage Finance System are pretty classic: asymmetric information and agency problems. It doesn't really have much to do with the housing market per se, it's sort of a different type of monster.
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