Reading about the “Global Financial Crisis” and the “housing bubble,” a lot of things come to mind. I remember sitting in school, hearing teachers and adults talking about the financial crisis, but not really knowing what it meant. I remember hearing about other people’s parents being laid off or having to move, but never experiencing it myself. The little bubble of my world was secure, and no one explained to me what was really going on. Until high school.
In high school, I took a financial literacy class. That class opened my eyes to so many things. I remember watching videos about the financial crisis. My teacher told us that he lost thousands of dollars when the stock market crashed, and that he had to rebuild his retirement fund. I remember watching videos about foreclosures, big companies being bailed out by banks and the government, and so much more. Even now, I don’t fully understand the situation. How could such a thing have happened? Bringing the world into crisis and fear, how could so many people have lost jobs, lost their houses, lost their way of living in such a short amount of time?
A lot of folks lost their jobs and were unable to make their mortgage payments, leading to evictions and foreclosures. A system is in place, where a person at risk of being evicted can make a payment plan and could potentially get their house back. Other times, the house is seized and resold to get money or is auctioned off and bought by a third party. Working with the homeless, I am amazed at how many individuals do not actually have homes. Many individuals don’t have jobs to pay for housing, lost jobs and eventually lost their homes, made poor decisions with illegal drugs and couldn’t make payments, or are just getting on their fee...
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...e jobs, but I’d like to cut to the chase and talk about the issue. How many more people could be free from foreclosure or actually buy houses if they could make an actual living wage? How many more funds could be swimming around the real estate industry if more individuals were in the middle-low class, or even (dare I say it) the middle class? All these upper class individuals strutting around, buying property is SO wonderful, I’m SO glad they can afford three houses AND a yacht to get money swirling in the real estate industry. What about the mom who had to rent apartments for 10 years because of her foreclosure and the effects it had on her credit? Fix the cancer, and you’ll be swimming in all of the cash flow you want in the real estate industry. Then, no one will have to ask for essays about foreclosure again, because it will be something taught in history books.
Vernon L. Smith, a Nobel Prize Laureate in economics and a graduate from Harvard talked about the housing bubble and the bank balance sheets as important issues in the Great Recession. Here are some notes of what he proposed:
In 2008, the U.S economy went through the “Great Recession,” possibly as a result of inappropriate and ineffective regulation in the banking system, causing Lehman Brothers to file for bankruptcy. There was a large debt and housing bubble which resulted in plummeting real estate prices and financial securities. Peter D. Schiff’s “How an Economy Grows and Why it Crashes” uses comic illustrations and a simple storyline to teach readers about how the 2008 recession came about and how the U.S tried to relieve it using the ideas of credit, savings, and other economic concepts.
Take a drive down town and the problem will be apparent, take a look to the left and there one stands, take a look to the right and there’s another. Homelessness is a term used to define a person who does not have a home to go to at the end of the day. Homelessness does not discriminate against age, sex or gender. What is startling to many people is that reasons why so many people succumb to homeless ness in their life; people assume that when someone is homeless it’s because of bad choices that that individual made in their life, which might be true but not for all, “approximately 1 and 5 Phoenix residents live below the poverty line” and that in itself has a lot to do with the current
This was the rich got richer and the poorer got poorer effect. Then there was the investors ' speculation, where they were buying stocks with the belief that they could always be sold at a profit, they were counting their chickens before they hatched, I believe that this was the “rock that sunk the barrel” and caused the crash of wall street, and which is still being done today, and then the lack of action by the Federal Reserve System, who could have had some control of the crash, and by not deciding to raise interest rates but to merely warn banks to reduce the amount of money they were loaning, even though they were warned by others more aware of the danger, to raise the interest rate, but they didn’t listen, this with an unsound banking system, that made loans easy to get, and lending money to everyone for business activities, real estate, and investments in stocks and bonds. Banks just assumed the economic boom would go on forever, but after “the crash of the New York Stock Exchange on October 29, 1929”, many banks had to close their
This great nation of awesome power and abundant resources is losing the battle against homelessness. The casualties can be seen on the street corners of every city in American holding an ?I will work for food? sign. Homeless shelters and rescue missions are at full capacity. There is no room at the inn for the nation?s indigent. Anyone who has studied this issue understands that homelessness is a complex problem. Communities continue to struggle with this socio-economic problem while attempting to understand its causes and implement solutions. The public and private sectors of this country are making a difference in the lives of the homeless by addressing the issues of housing, poverty and education.
Homelessness can happen to anyone unexpectedly. Many poor people are at the risk of homelessness. The cost of living and trying to find affordable housing can be very difficult. Many who are homeless are in poverty, have a mental illness, or addictions. Homelessness happens from personal, as well as structural factors. Many aren’t able to make enough for rent, as well as, utilities, food, and other expenses each month. More than 6 million Americans pay more than half of their income towards rent (Reamer, 1989). The trend is once someone becomes homeless, it is likely they will be homeless repeatedly. To end homelessness, affordable housing will have to be created because it is peoples largest single expenditure (Anderson, 2013).
Homeless individuals are known for taking hand outs and they prefer to plead for money rather than to go work for it. People assume most of the the money that is given to homeless people they spend it on drugs and alcohol because of the fact that many homeless people have drug and alcohol addictions. It is not uncommon to come across homeless youth and older homeless population that are known to abuse substances like drugs and alcohol. Because of the fact that homeless people have substance abuse problems, they tend face illnesses and infections. Many hard working Americans ask themselves “why don’t homeless people just get jobs?” The assumption is they are just lazy and unmotivated. Homeless people choose to live the life they live. Everyone goes through problems but not all people take the path homeless people do. The problems homeless people face is not an excuse for them to be helped and maintained by other hard working people. Although homelessness might be a choice to some, no one knows the hardships these people have gone through. Some assume these people are just lazy but in reality a lot of these homeless people have jobs of their own, they just can’t afford housing and a decent life. Everyone has their own opinion on homeless people, but that does not change the fact that one should still serve the homeless. Not because homeless people need help but because we are
It is estimated that, “each year, more than 3 million people experience homelessness, including 1.3 million children” (NLCHP). Clearly poverty and Homelessness come hand in hand, and the economy downfall has only contributed to this growing crisis. “Homelessness stems from a lack of affordable housing. Increasing rents, destruction of traditional low-income housing, and cuts in federal housing programs threaten affordable housing with extinction” (NLCHP). Most people in poverty have a housing affordability crisis, which means that they pay more than half of their income for rent, so therefore they have to buffer to deal with unforeseen expenses.
The economic component of the homelessness situation can be broken down into two interrelated parts: housing affordability and a low income rate. The economic recession that followed the financial crisis of 2007 left many individuals unemployed during a time that saw a spike in the price of housing. So not only did the cost of living increase, the rate of income also decreased accordingly. Unsurprisingly, during these same years homelessness rose from 24.2 percent in 2007 to 29.4 percent in 2009 (citation).
Homelessness is a vast predicament in America and around the world. It is severely overlooked as people don’t really think of homelessness as real world problem. However, there have been ways that people have tried to fix the problem. They have come up with homeless shelters, emergency shelters, food banks and soup kitchens. These solutions have limitations though, which will hopefully come to an end.
] This catastrophic event is caused by the accumulation of a large scale of speculation by not only investors but also banks and institutions in the stock market. Though the unemployment rate was climbing during the 1920s and economy was not looking good, people on Wall Street were not affected by the depressing news. The optimism spread from Wall Street to small investors and they were investing with the money they don’t have, which is investing on margin as high as 90%. When the speculative bubble burst, people lost everything including houses and pensions. The main reason ...
Homelessness is increasing more every year. In fact, according to the National Alliance to End Homelessness, over 640,000 people experience homelessness every night. (Hunger and Homelessness in North America) By definition, the homeless are groups of people that do not have a home. They can be people who are mentally ill, unemployed, veterans, or even children born into unfortunate families. Since they have nowhere to go, the homeless usually live inside abandoned buildings, in the streets, or in makeshift homes, such as a cardboard box or homemade tent. Although some work to find a decent home, many still suffer from depression or are psychically disabled and cannot work. (Overview of Homelessness in America) These people do not choose to be homeless, instead they become homeless due to a series of unfortunate events; namely losing their source of income or becoming homeless by birth. One instance of this occurred in the life of Hazel Washington. Hazel was fleeing an abusive relationship when she moved in with her relative and his girlfriend, but she was not told about their impending eviction. Because of this, her roommates took everything she owned an...
...At its root, homelessness is the result of the inability to afford and maintain housing. Government funding should be put into place that can incorporate an investment in creating affordable housing. This includes supportive housing, which is permanent housing coupled with supportive services. In order to maintain housing, people exiting homelessness must have income. Cash assistance programs are available through federal and state government, and career-based employment services can help formerly homeless people build the skills necessary to increase their income. Mainstream services, including the Workforce Investment Act, should be used for this purpose (Ten Essentials). Lastly, programs must ensure that the homeless have access to these services but are able to attain independence as soon as possible as well. To do this there must be instant access to housing.
When subprime mortgages began to flourish, the term housing bubble came into existence. The term relates to the time in which houses sharply increased in value, and consumers often borrowed at less than the lowest rates. People believed that the price of their homes would rise and they could then refinance for lower payments. The problem with that mentality is many people didn’t just refinance for lower payments, they also refinanced for personal spending. Inflation of home prices meant homeowners suddenly had more equity and were able to spend the money as they chose.
Many people find themselves in a predicament when they are living with a partner and the two decide to go their separate ways. Some people may not be able afford the cost of living on just their income alone, so when two people terminate a relationship where one depends on the other, both are often left homeless for a period of time. Unemployment is another major cause of people becoming homeless. When people lose their jobs and fail to find another within a reasonable amount of time, they will not be able to pay their rent or mortgage on time or even at all, causing them to look else where for shelter. Many people are not fortunate enough to have a family member that is willing, or capable, of taking them in and supporting them. The main cause of homelessness comes from people being evicted from their place of residence either by their parents, friends, or land lord. Parents will often kick their kids out of the house because they can not financially support them anymore, or they are just simply tired of their kids bumming off of them when they are perfectly capable of supporting themselves or at least contributing to the cost of living expenses. So many people are forced to live on the streets because of something as little as a relationship problem. All homeles...