If the economy is so great, then why are their record number of homeless FAMILIES?

Question

http://news.yahoo.com/s/nm/20071221/us_nm/usa_housing_social_dc;_ylt=AlItHi_WtseIZy6_IVyPtiYWIr0F

Answer 1

Exactly right.

Along with that we have the problems of states running out of money to support WIC programs:
Salt Lake Tribune - Rising costs, flat fed funding could mean food aid cuts for poor kids, pregnant women
"Rising costs, flat fed funding could mean food aid cuts for poor kids, pregnant women"
http://www.sltrib.com/news/ci_7658213

Answer 2

The economy is not doing so great, and not many people are claiming it to be doing well. The problem with the homeless has many faces. There exists no silver bullet for this problem. If you are truly concerned, I would encourage you to write a letter to Nancy Pelosi. No single demographic makes up the Homeless community more than Disabled Vets (25%, this is not considering those addicted to drugs or alcohol, but people who shouldn't be homeless but are). Recently Pelosi and her Democrats ladened a VA bill will billions in Pork-Barrel Spending and gutted aid and benefits to Vets. So there is one place to look.
Another, is clearly the Subprime Mortgage issues. Now, this is NOT tied to any particular party, and is mainly being pointed to being the fault of former Fed Chairman Greenspan. Lowering the Fed Funds Rate to 1% was very, very irresponsible, as common sense and simple economics tells us over and over again that if you remove risk and penalty from the marketplace producers and consumers act irrationally. So, Loan Officers acted irrationally as they had tons of Loans to move. And Consumers acted Irrationally cause they did think the readjustment of the Rate would hurt them...even though they signed documents stating they read and understood the nature of their mortgage. Both parties are to blame. And therefore both parties are paying for it now...and in the year to come.

That being said, there isn't much more at work within the economy that is leading to this problem.

Answer 3

http://www.zimbio.com/Civil+rights/articles/32/HUD+Spends+762+Million+Raise+Homeless+Rate
unanimous vote by the City Council today approved the demolitions of the three remaining subsidized housing complexes which provided affordable housing to the city’s poor. The City Hall meeting was attended by thousands of protesters hoping to impress the need for the affordable housing structures to council members who now appear to have made up their minds supporting the demolitions before the meeting ever began. Protesters were largely held out of the meeting, and attempts to push through the closed gates at City Hall were met with pepper spray and tazers by NOPD officers. The NOPD later confirmed that pepper spray and tazers are not standard equipment for officers, but rather confined to SWAT officers with specialized training. When asked why SWAT officers were present at a City Hall meeting, the NOPD spokesperson replied that some protesters present “had only one goal in mind - to be disruptive and disobedient.”

Answer 4

I was in that area of california about 18 months ago and the house prices were ridiculous compared to the average income of the area. I was thinking who can afford a 400k house on a 50k a year income ( those were approximately the averages at the time that I had looked up.

I know from previous work experience with mortgage brokers that in general 5x your annual income is what you will generally qualify for on a home loan.

Well when lenders go ahead and qualify people anyway and they buy houses they cant afford, and people go ahead and take those loans they cant afford to pay, thats what happens.

Answer 5

Thank Clinton, he forced fannie mae and mac to give mortgages to miscreants that usually never would have qualified. Add in greedy brokers who faked income levels and such, thus you reap what you sow. I mean honestly, how the hell can some moron making 15 - 20 k a year think he can afford to buy a 750 - 1 million dollar home. Those suckers deserve all the pain and misery they get.

Answer 6

your question is a bit scattered...most people reason and respond from personal experience and perspective. thus...like the fable of the blind men describing an elephant...each being able to touch a different part and not able to take in the whole of it...those doing well, in the current economy, have only their individual concerns. and will not express insight on the issue of homelessness. (which has been increasing, year after year, for decades)

Answer 7

What are you talking about? That article has no relevance to people being homeless due to the economy.
Besides, in most scenarios, the state of the economy (whether it's good or bad), isn't going to define the "record number of homeless families". And in all scenarios, thinking what you will and redrawing the conclusions in news articles doesn't make any sense.

Answer 8

The economy flows in a straight line to the top so the top says is great so people keep spending but reality is that the bottom is choked and the middle is starting to choke.

Answer 9

Because the economy is not so great-it is so great only for the ruling elite.

Answer 10

I do not believe these are record numbers in terms of a % of the population. But, the numbers are indeed growing and in large part to greedy and gullible people who fell for the subprime mortgage scam. Sure, the scammers are at fault but the borrowers are equally or more at fault.

Answer 11

This has nothing to do with the economy. It has to do with mortgage companies and other companies (Rooms to Go, cars, etc.) in the late 90s and early 2000s doing all these promotions like no interest for x-amount of time, low interest rates ("3.99% for 5 years" etc.). Now people cannot afford the higher payments since those promotions expired.

So it's not the economy that is causing this.